A STUDY ON CONSUMER PERCEPTION TOWARDS SBI

EBANKING IN KUZITHURAI BRANCH

Project Report Submitted to Manonmaniam Sundaranar University Thirunelveli

in Partial fulfillment of the requirement for the award of the degree of

Bachelor of commerce
Submitted by

AJIN.K 20213011301202
AJIN.R 20213011301203
AJISH.M 20213011301204
AKASH.D 20213011301205
AKASH.D 20213011301206

DEPARTMENT OF COMMERCE ANNAI VELANKANNI COLLEGE (Accredited with B++ by

NAAC) THOLAYAVATTAM APRIL-2024
 DECLARATION

This is to declare that the Project titled "A STUDY ON CONSUMER

PERCEPTION TOWARDS SBI E-BANKING SERVICES IN
KUZITHURAI BRANCH" is done by us III B.Com Students, Annai
Velankanni College, Tholayavattam affiliated to Manonmaniam Sundaranar
University Under the guidance of Dr.K.AJITHA, M.Com, B.Ed, M.Phil, Ph.D is
submitted in partial fulfillment of the requirement of the award of B.Com
Degree.

Place: Tholayavattam
Date:

AJIN.K 20213011301202
AJIN.R 20213011301203
AJISH.M 20213011301204
AKASH.D 20213011301205
AKASH.D 20213011301206
 BONAFIDE CERTIFICATE

Certified that this Project report titled "A STUDY ON CONSUMER

PERCEPTION TOWARDS SBI E-BANKING SERVICE IN
KUZITHURAI BRANCH" is the Bonafide work of AJIN.K
20213011301202, AJIN.R 20213011301203, AJISH.M 20213011301204,
AKASH.D 20213011301205, AKASH.D 20213011301206 who carried out of
the work under my supervision. Certified further that to the best of my
Knowledge the work reported here in does not part any other report on the basis
of which a degree or award was conferred on earlier occasion on this or any
other candidates.

Signature of the HOD Signature of Supervisor

Signature of the External

Examiner
ACKNOWLEDGEMENT

We thank almighty God for love guidance and blessing showered upon for
completing the project work within the stipulated time period.

We would like to express our sincere thanks to our correspondent

REV.Fr.A.Jesu Marian, M.A, M.Phil andPrincipal Dr.J.Johnson, M.Sc., M.Phil.,
Ph.D., who have been kind enough to provide me with the excellent facilities
available.

We greatly extent our sincere to Dr.M.Josephin Rani, M.Com., M.Phil.,

SLET., MBA., Ph.D. Head of the Department, who has given us moral support
and guidance she has offers all the possible way to complete this project
successfully.

We would like to express our special gratitude to my guide Dr.K.AJITHA,

M.Com, B.Ed, M.Phil, Ph.D for imparting her knowledge and giving critical
and enthusiastic guidance for the completion for the dissertation.

We would like to express my gratitude towards my family members for

the encouragement which helped me in completion for this dissertation.

Our thanks and appreciation also to the staff members of our department,
our friends and support as to have willingly helped us with their abilities .
AJIN.K 20213011301202
AJIN.R 20213011301203
AJISH.M 20213011301204
AKASH.D 20213011301205
AKASH.D 20213011301206

TABLE OF CONTENT
TABLE NO TITLE PAGE NO.

Ⅰ Introduction and design of the study

Ⅱ Review of literature

Overview of the study

Ⅲ

Data analysis and interpretation

Ⅳ

Finding, suggestion and conclusion

Ⅴ

Bibliography

Questionnaire

Appendix
 CHAPTER-I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 Introduction

1.2 Statement of the problems

1.3 Objectives of the study

1.4 Scope of the study

1.5 Research methodology

1.6 Source of data

1.7 Tools of analysis

1.8 Hypothesis

1.9 Period of the study

1. 10.Operational definition

1.11 Limitation

1.12 Area Profile

1.13 Chapter Scheme

1
 CHAPTER-Ⅰ

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION:

Now- a -days banks are not following the traditional or conventional banking with

manual operations. Banks Have moved from disbursed to a centralized environment, which

shows the impact of technology on banks. Banks are using new tools and techniques to find

out their customer’s needs and satisfaction and offer them Tailor made products and

services to make it convenient. The customer is king and the service providers are Rushing

to pay observance to the king, the financial service providers are trying to provide their

services to the Customers in the comfort of their homes. The E-banking has emerged as a

convenient channel for these Service providers.

E-banking refers to electronic banking is a service that allows Customers to access

their bank information, conduct financial transactions, make deposits, withdrawals and pay

bills through the internet without having to physically visit their bank. E-banking is one of

the most recent technological innovations, which is becoming a need for every common

man so it is becoming “Need to Have” service. It makes the regular Transactions for a

customer speedy and time efficient with little or no paper work involved. SBI is a

wellknown commercial bank which provides many of E-banking services to its customers.

E-banking is about using the technology of the digital era to build both local and

globalopportunities. It allows a drastic reduction in transaction costs as well as the

development of new forms of banking opportunities that overcome time and distance

barriers. In e-banking, banking opportunities are local, global, and immediate. The benefits

of internet banking over other conventional banking distribution methods are numerous.

2
 Increased customer base, cost savings, mass customization, product developments, better

marketing, and communication, ability to grow non-core businesses, and ability to provide

services independent of location and time constraints are all advantages of internet banking

for banks. This research paper aims to complement the existing expertise in the field of

electronic banking. This study will assist various individuals and institutions in

understanding and developing an efficient environment in the area of e-banking in India,

which has seen a rapid increase in the field following the current government's

demonetization.

1.2 STATEMENT OF THE PROBLEM

An extension of the demonetization process the cashless transaction system are

implemented impact the significant changes in the behaviour of consumer in India most of

the consumers are heavily depend only on the has economy now the consumers how to

switch from cast to cashless electronic transactions most of the consumers have been using

more one has for purchase of products and service expect few currently the government

announced that all restriction for the traditional cash transactions and offers for electronic

transfer push the consumers to adopt and implement cashless and section for the needs in

the contacts of the above. This study makes here attempt to understand the State bank of

India e-banking merits and demerits class and its customer satisfaction towards the

customers in kuzithurai branch.

1.3 OBJECTIVE OF THE STUDY

• To Understand customer awareness and usage of SBI e-banking services at the

Kuzithurai branch

• To Identify factors influencing their decision to use e-banking services.

• To Gauge customer satisfaction with the current e-banking features and

3
 functionalities.

• To Uncover any challenges or issues faced by customers while using SBI e-banking.

• To Identify the key features of SBI e-banking that are most valued by consumers in

Kuzithurai.

• To Understand the usage patterns of different e-banking services offered by SBI in

Kuzithurai and their impact on consumer perceptions.

1.4 SCOPE OF THE STUDY-

The main goal of this research is to examine the various online services offered by SBI in

Marthandam and to assess their effect on customer preference. Compared to other

conventional banking distribution methods, e-banking has a number of advantages.

Ebanking gives banks more customers, lower costs, mass customization, product

creativity, better marketing and connectivity, the opportunity to grow non-core enterprises,

and the ability to deliver services regardless of location or time constraints. E-banking is

expected to become a big banking system for customers as new technology develops. E-

banking saves money by giving consumers another way to access their accounts without

having to go to the Bank

1.5 RESEARCH METHODOLOGY

Descriptive research method has been used for this present study simple random

sampling method was used by the research to collect the data. The sources of data were

primary data and secondary data. Secondary data are also collected. The size of sample is

50 respondents were selected and tools like percentage analysis was used to analyse the

data.

4
 SAMPLING

It is the process of selection representative subset of a total population for obtaining

data the study of the whole population the subset is known as sample. The sample size of

the study is 50 were chosen primarily on the basis of the simple random of the researcher.

Data collection is one of the most important aspects of research. For the success of any

project accurate data s very important and necessary.

1.6 SOURCE OF DATA

• Primary data

• Secondary data

PRIMARY DATA

The primary data is the one which is collected interview method, for the purpose of

specific inquiry of study. Such data is original in character and is generated by survey.

SECONDARY DATA

The secondary data are collected from books journals and various documents. Some

data are collected from internet.

1.7 TOOLS OF ANALYSIS

Chi-Square

Chi-square has been applied to analyze the relationship between profile variable and their

attitude towards enterprise using the following formula

Chi-square Σ(Ο-Ε)2

5
Whereas

O-Observed frequency

E - Expected frequency

E- RT X CT

RT The row total for the row containing the cell CT

The column total for the column containing the cell

N = The total number of observations.

1.8 HYPOTHESIS

Hypothesis means a mere assumption or some supposition or a probability to prove or

disapproved.

The null hypothesis (Ho) is the one which wishes to disprove alternative hypothesis

(Ha) is usually the one which tone wishes to prove.

Following hypothesis have been formulated for the present study.

HO :There is no significant relationship between the age and the types of bank accounts.

HO : There is significant relationship between income and e-banking channels.

1.9 PERIOD OF THE STUDY

The study covers a period of December to April 2024.

1.10 OPERATIONAL DEFINITION:

6
1. Customer

Any person who defines needs or wants justifies or pays for part or the entire project

or evaluated or used the results.

Oxford Dictionary of business English define the word 'customer' as. A person who

buys goods and services from his/her right of return facility goods and demand a refund

from the supplier. The Dictionary of commerce defines customer strictly as the ultimate

customer product, the ultimate user of product/services of the person who drives the

satisfaction or the benefit offered.

2. Customer Satisfaction:

Customer satisfaction is a judgment made by the customer. It is borne out of the

comparison of pre-purchase expectations with past purchase evaluation of the product. If

the perceived performance falls short of expectation, it leads to dissatisfaction. Satisfaction

occurs when the perceived performance matches the expectations. If perceived performance

exceeds expectations, it results in delighting the customer. Customer satisfaction result from

quality related issues or non-quality issue. Customer satisfaction is also linked to increased

profitability, loyalty retention and repeat purchase. So it is imperative for marketers to

understand the customer satisfaction and its related concept to determine the factors

influencing consumer behaviour.

3. Customer behaviour:

It is a decision process plus a physical activity. It refers to people's effort in

identifying, evaluating, purchasing and consuming or using goods and services that satisfy

their needs.

4. Consumer perceptions

7
 Consumer perception is the overall impression that customers have of a particular

brand, product, or service. It's a subjective and often emotional response that can be

influenced by a variety of factors. Consumer perception is a critical factor in business

success. A positive perception can lead to increased brand loyalty, trust, and sales.

Conversely, a negative perception can damage a brand's reputation and lead to lost sales

5. Brand:

A brand may be defined as a name or symbol used to identify a company's products

and distinguish them from the competitor products.

6. Brand Loyalty:

A close link exists among learning habit and brand loyalty. Brand loyalty represents a

favourable attitude towards a brand resulting the purchase of the brand overtime.

7. Life style:

Life style variable are defined by how people spend their time what they consider

Important in their environment and what they think of themselves and world around them.

1.11 LIMITATION OF THE STUDY

1. The respondents are limited to Kuzithurai area only.

2. Only 50 respondents were selected at random.

3. Some of the data were collected from friends and family members; hence it may not

represent the actual population.

4. The reliability of the information gathered from various respondents.

5. Data were analysed from only 50 respondents, and it was not possible to collect the

data from the entire relevant population.

8
 6. The researcher has no way of knowing whether or not the respondents always grasped

the true meaning of each question.

1.12 AREA PROFILE

Introduction

Marthandam is major trade centre in Kuzhithurai Municipality across National

Highway (NH 47) in the Kanyakumari district of Tamil Nadu, India. Also known to some by

the name Thoduvatty (the another name for the marthandam market region), It was a portion

of kanyakumari district which was added to the state of Tamil Nadu on November 1,

1956.Marthandam is the second biggest town next to Nagercoil in kanyakumari district.

Production

Marthandam is famous for honey, cashew nut processing, rubber and hand -

embroidered motifs. The area is full of greenery, and there is a river adjoining

Education

• Marthandam area has more educational institution. Following are the educational

institution.

• 1. Mar Ephraem College of Engineering and Technology.

• 2. Marthandam is home of the Nesamoney Memorial Christian College.

• 3. Sree Devi Kumari Women's College Kuzhithurai.

• 4. Christu Raja Matriculation Higher Secondary School.

• 5. Marthandam Hindu Vidhalaya Matriculation Higher Secondary School.

• 6. Good Shepherd School, situated in the North Street, has been Known for its

excellent features, infrastructure.

9
 • 7. White Memorial Matriculation School is located near the railway station road.

• 8. Marthandam College of engineering and Technology

Geography

It is the one of the most fertile of Tamil Nadu and has the climatic conditions of the

kerala. It has a railway line connecting the capital of Kerala, Trivandrum, with the

southernmost tip of India, Kanyakumari. The station is still called Kuzhithurai. Marthandam

is well connected to Chennai, Mumbai, Bangalore by rail service also bus service to all over

Tamil Nadu. The river Thamirabarani runs through the Marthandam city and every Year

Festival Known as Vavubali will be celebrated at the banks of river Thamirabarani.

Demographics

According to 2011 census, Kuzhithurai had a population of 21,307 with a sex - ratio

of 1,022 females for every 1,000 males, much above the national average of 929. A total of

1,829 were under the age of six, constituting 922 males and 907 females. Scheduled Castes

and Schedules Tribes accounted for 1.45% and .02% of the population respectively. The

average literacy of the town was 85.99% compared to the national average of 72.99%. The

town had a total of the: 5516 households. There were a total of 7,861 workers, comprising

171 cultivators, 615 main agricultural labourers, marginal cultivators, 99 marginal

agricultural labourers, 136 marginal workers in household industries and 1,002 other

marginal workers.

Transport

• Trivandrum International Airport is the nearest airport and is 34 Km from the heart

of the city. Kuzhithurai station is next stop from Eraniel towards Trivanduram.

Culture

10
 • People of its town generally know both Tamil and Malayalam languages, because of

its proximity to the border of Kerala. Tamil and Malayalam are widely spoken by

the people. The culture is mixture of Tamil and Malayalam culture and traditions.

Hinduism and Christianity are the major religions in the town.

• This study is in context with the population of Marthandam area.

1.13 CHAPTER SCHEME

• The first chapter deals with introduction and design of the study.

• The second chapter deals with review of literature.

• The third chapter deals with overview of the study.

• The fourth chapter deals with analysis and interpretation of the study.

• Then fifth chapter deals with findings, suggestions, and conclusion.

CHAPTER II

2.1 INTRODUCTION

2.2 REVIEW OF LITERATURE

11
 REVIEW OF LITERATURE

INTRODUCTION:

The banking landscape in India has undergone a significant transformation with the

rise of e-banking services. State Bank of India (SBI), being the largest public sector bank,

plays a crucial role in this shift. Understanding customer perceptions towards SBI's

12
ebanking services at the Kuzithurai branch is vital for enhancing their digital banking

experience.

This literature review aims to explore existing research on consumer perceptions of

ebanking services, with a specific focus on factors influencing adoption and satisfaction

levels. We will then narrow down the lens to studies conducted in the Indian context,

particularly those examining SBI's e-banking offerings. Finally, we will identify any

research gaps that this study on the Kuzithurai branch can address.

REVIEW OF LITERATURE

Mishra A. K. (2005) found the reasons for customer satisfaction with the services

Provided by the Urban Cooperative Bank (UCB) were investigated. UCB was a newcomer

to The banking system, and they realized that customer loyalty is the only way to remain

alive in This fierce competition. The investigation’s conclusion was that the active

involvement of Employees (at the bank level) is needed to improve customer service.

Subbarao (2009) concludes that increased technology investment would boost

Efficiency, reduce costs, and enable businesses to operate more efficiently. Information

Technologies and the advances they allow are strategic tools because they lower the costs of

Financial transactions, increase the distribution of financial capital, and boost financial

Institutions’ productivity and performance. Consumer banking and financial services

benefit From technological innovation not only because it extends their scope but also

because it Increases their capacity for long-term, inclusive growth

Safeena, Rehmath (2010) emphasis is on the customer’s perspective with regard to

Internet banking adaptation. The primary aim of this research is to explore the effect of

Perceived utility and ease of use, as well as consumer perception and perceived confusion,

on Consumer adoption of internet banking. The study’s conclusion is that there are several
13
factors That enable consumers to use online banking, including its ease of use and

decreased time Commitment.

Sharma, Himani (2011) reveals that bankers persuade their customers to use online

Banking services because they are aware that these services will strengthen the relationship

Between customers and bankers and that in today’s competitive environment, this activity

can Have a positive effect on the Bank’s profitability and efficiency.

Krishnamoorthy, V. And R. Srinivasan (2013)conclude that retaining current

Customers is extremely difficult for banks. Banks must address a number of critical issues

in Order to ensure their long-term viability, such as developing deep confidence and

Relationships with current customers or making new product innovations based on

consumer Needs and desires

Lakshmi Narayana et.al (2013) in their study entitle “A Study on Customer

Satisfaction towards Online Banking services with reference to Bangalore city” focuses on

investigating the major factors that influence Online customers’ satisfaction with the overall

service quality of their banks. Assessing the power of these Factors in the context of Online

(Internet) banking and would, therefore, help the bank management not only In improving

the level of satisfaction but also strengthening the bond between the banks and their

customers, Thereby helping them to retain and expand their overall customer base. Further

this study reveals that online Banking, to make a customer’s banking experience more

convenient, efficient, and effective, it becomes even More important to ascertain the

customers’ perception of the overall service quality and their satisfaction with The current

online banking services.

Vimala (2015) has attempted a study on “An Evaluative Study on Internet Banking

Security among Selected Indian Bank Customers”. This study shows that Internet banking

14
is very convenient and fast, it is mired with Several security issues. Banking institutions

have taken several measures to ensure safety measures for their Customers while

performing various transactions online banking sector is one of the major beneficiaries of

The Internet revolution and the growth of banking technology products have been

remarkably increasing. Internet banking system proves to be very versatile in completing

transactions like balance inquiry, Withdrawal, deposits, viewing the bank statement, and

record of recent transaction. From this study rightly Observed that, very few works have

focused on the Internet banking, its usage, safety measures and its Perceptions,

attentiveness level, satisfaction levels, attitudes and behaviour of the internet banking,

security Issues, and financial frauds.

ReetaClonia. (2016) has conducted study on “E-banking in India: Current and Future

Prospects”. Reeta has Examined that E-banking is the most pioneering trend among the

customers in the present era of thrust forMore expeditious and secured financial services.

The transfer from the traditional banking to E-banking has Been an elevating amendment in

banking dealings. Banking industry in India and additionally discussed the Magnification

rate and future prospects of the E-banking services provided by the Indian banks in this

regard. Economic growth and development of any country is mainly influenced by the

advancement of the banking Sector in that particular nation.

Khaled Bin Amir and Dr.HasinaSheykh (2017) in their study entitle “Analysis of

Customer Satisfaction On Online Banking: A Case Study on “One Bank Limited” has

stated that customers are asked about their Satisfaction level on online banking. Online

banking services of One Bank Limited, is quite good and Satisfactory but customers were

not aware and willing to take this services. But level of satisfaction is greater For some

parameters and less for some parameters. Likewise, customers are satisfied with security

and user Friendliness of the website of the banks and somewhat neutral in perception with

15
 update frequency. For this Reason, internet banking has become an important measurement

tools to attract larger customer base.

Solanki (2018) found that e-banking is in its infancy in India. Despite the fact that

Indian banks are making sincere efforts to implement advanced technology and install

eDelivery platforms, the general public is still wary of the idea. Banks are working hard to

Make e-banking services and goods more widely available. E-banking is gaining popularity

Among the younger generation because of its convenience and benefits. E-banking will not

Only be an acceptable mode of banking in the future, but it will also be the preferred mode

of Banking.

Sunith C K (2019) has made an empirical study of customer satisfaction in Ebanking

services. This studyStated that Electronic banking incorporates systems that enable individual

customers to access their accounts, Transact with speed and obtain current and updated

information on latest financial products and services Through public or private networks. It

accommodates a variety of platforms such as internet banking, Telephonic and television

based banking, automated teller services, mobile phone banking as well as personal

Computer based and offline banking services. Customer is distinguished from a consumer in

the sense that a Customer pays for a product or service while a consumer is the end user who

experiences a product or service.

CHAPTER III

2.1 INTRODUCTION

16
 2.2 BANKING INDUSTRY

2.3 E-BANKING

2.4 HISTORY OF E-BANKING

2.5 E-BANKING IN INDIA

2.6 FEATURES

2.7 HISTORY OF SBI

2.8 E-BANKING PRODUCTS AND SERVICES

2.9 FUNCTIONALITIES OF MOBILE BANKING CHAPTER II

3.1 INTRODUCTION

The banking sector is the most important component of the financial sector in the

growth of the Indian economy, accounting for roughly 70% of all funds flowing through the

country's financial sector. In India, the banking system serves three purposes:

• Payment system operations

• Depositor and protector of people's savings

• Issue loans to individuals and businesses

3.2 BANKING INDUSTRY

In every region, banking plays an important role. It is vital for a country's growth

because it provides funds for enterprises and plays an important role in the country's

development. It serves as a bridge for those who need funds for business purposes and those

who have excess funds. The banking industry has been adapting its operations to keep up

with technological advancements. Banks have evolved numerous systems and processes to

17
carry out banking transactions with ease and speed as a result of technological

advancements. In a developing country like India, where people are diverse and have

varying needs and preferences, it is evident that banks must provide high-quality services to

their customers.

In India, banks are one of the most important actors in the financial system. Banking

is essential for any country's economic growth, or we might argue that the banking system

is thebackbone of any economy. In 1786, India's first Bank was founded. The development

of the

Indian banking system can be divided into three stages.The first stage, which lasted

from 1786 to 1969, saw the East India Company create the Bank of Bengal (1809), the

Bank of Bombay (1804), and the Bank of Madras (1843) as separate units and rename them

presidency banks. In 1920, these three banks merged to form the Imperial Bank of India,

which began as a private shareholders bank with mainly European shareholders.

In the second stage, as part of the first stage of nationalization, the government took

significant steps. It nationalized the Imperial Bank of India (the State Bank of India Act)

with extensive banking facilities on a large scale, especially in rural and semi-urban areas. It

founded the State Bank of India (SBI), which acts as an agent for the Reserve Bank of India

(RBI) and handles all banking transactions for the country's union and state governments.

Due to the efforts of then-prime minister Mrs. Indira Gandhi, seven subsidiary banks of the

State Bank of India were nationalized in 1969, and 14 major private commercial banks in

the country were nationalized later that year.

In its reforms, the third stage of Indian banking growth introduced a slew of new

products and services to the banking sector. Under the chairmanship of M. Narasimha, a

committee was established in 1991 to work towards the liberalization of banking practices.

18
During this process, new international banks with ATM stations, as well as phone banking

and internet banking, were introduced. The system as a whole has become more

userfriendly and effective. Time, rather than money, is valued more highly in this scheme.

3.3 E-BANKING:

Online banking, also known as internet banking or online banking, is an electronic

payment system that allows Bank or other financial institution customers to make a variety

of financialtransactions via the institution's website. In comparison to branch banking,

which was theconventional way customers accessed banking services, the online banking

system wouldusually link to or be a part of the Bank's core banking system. Some banks

function as a “direct bank" (also known as a "virtual bank"), relying solely on internet

banking. Viewingaccount balances, receiving statements, verifying recent transactions,

moving money betweenaccounts, and making payments are only a few of the features

offered by Internet banking apps.

3.4 HISTORY OF E-BANKING

Distance banking services over electronic media, which began in the early 1980s,

were the forerunners of modern home banking services. The term 'internet' first became

common in the late 1980s, referring to the use of a phone line to access a banking system

via a terminal, keyboard, and TV or monitor. 'Home banking' may also refer to sending

tones down a phone line with directions to the Bank using a numeric keypad.United

American Bank, a community bank based in Knoxville, Tennessee, was the first to offer

home computer banking to customers in December 1980. United American teamed up with

Radio Shack to create a secure custom modem for its TRS-80 device, allowing bank

customers to securely access account information. Bill pay, account balance checks, and

loan applications were among the services available in the first year, as were game access,

19
budget and tax calculators, and daily newspapers. Thousands of people paid between $25

and $30 a month for the service.

In 1981, four of New York's major banks (Citibank, Chase Manhattan, Chemical, and

Manufacturers Hanover) provided home banking services using the videotext scheme, many

on parallel tracks to United American. These banking services were only common in France

(where the use of videotext (Minitel) was subsidized by the telecom provider) and the

United Kingdom (where the Pestle system was used) due to the commercial failure of

videotext.

When United American Bank collapsed in 1983 as a result of loan fraud on the part of

bank owner Jake Butcher, the 1978 Tennessee Democratic candidate for governor and

organizer of the 1982 Knoxville World's Fair, the creators of the first-to-market electronic

banking system sought to license it nationwide, but they were overtaken by competitors.

The failed bank was acquired by First Tennessee Bank, which made no effort to build or

commercialize the computer banking platform.

In the United Kingdom, online banking began in September 1982 with the

introduction of Nottingham Building Society's Homelink service, which was initially

limited until being extended nationwide in 1983. Homelink was made possible by a

collaboration between theBank of Scotland and British Telecom's Prestel operation. The

machine used a Prestel viewlink system and a monitor or keyboard (Tandata Td1400)

connected to the telephone system and television set. Users may "move money between

accounts, pay bills and arrange loans, compare prices and order items from a few major

retailers, search local restaurant menus or real estate listings, plan vacations... join bids in

Homelink's daily auctions, and send electronic mail to other Homelink users," according to

the website. To make bank transfers and bill payments, a written instruction with the

20
intended recipient's information had to be submitted to the NBS, who entered the

information into the Homelink system. Gas, Electricity, and telephone companies, as well

as accounts with other banks, were common recipients. The account holder used Prestel to

enter the details of the payments to be made into the NBS system. NBS then sent a check to

the payee, along with advice detailing the payment to the account holder. The payment was

later transferred directly using BACS.

3.5 E-BANKING IN INDIA

The Reserve Bank of India's mission is to ensure that payment and settlement systems

in India are safe, effective, interoperable, approved, open, inclusive and consistent with

international standards. The vision is to aggressively promote electronic payment systems in

India in order to usher in a less cash-based society. The aim of the regulation is to

encourage creativity and competition in order to help payment systems meet international

standards. Various interventions of the Reserve Bank of India in the mid-eighties and early

nineties culminated in the provision of technology-based solutions. The need for a

costeffective alternative method arose.

The Electronic Clearing Service (ECS) was founded in the 1990s to handle large and

repeated payments. A new avatar, the National Electronic Clearing Cell, was introduced in

September 2008 to manage multiple credits to beneficiary accounts. The National

Electronic Clearing Service (NECS) is based on member banks' core banking systems. The

retail funds' transfer system was created in the 1990s to allow for electronic fund transfers

for person-to-person payments. In November 2005, a comprehensive framework was

introduced to meet the needs of individuals and businesses for one-to-one funds transfers.

Prepaid instruments allow for the exchange of goods and services in exchange for the value

21
 deposited on the payment instrument. Smart cards, magnetic stripe cards, internet wallets,

mobile accounts, mobile wallets, and paper vouchers are all examples. Following the

mobile banking guidelines, only a few banks were allowed to offer the service after

receiving the requisite permission from the Reserve Bank of India. Retail payments in India

present both obstacles and opportunities.

According to the Reserve Bank of India's Payment System Vision paper, the number

of non-cash transactions in India is low, at 6 per person. Government subsidies alone are

expected to be worth more than Rs.2.93 trillion, and electronic transactions have the

potential to total 4.13 billion per year. Internet commerce is projected to cross Rs.465

billion by 2012, according to a study by the Internet and Mobile Association of India

(IAMAI).The Reserve Bank of India founded the National Payment Corporation of India as

an umbrella organization to promote electrification. Many previous studies have

emphasized the major changes that are occurring in the banking sector as a result of the

rapid advancement of information technology. Sahai and Machiraju explored how emerging

technology addressed various needs and how these technologies interacted to create a

universal e-marketplace and e-service vision. While several new electronic payment

products are being introduced, banks must keep track of how they are being used. On the

demand side, there has been concern about the widening "digital divide" between the rich

and the poor, as well as the different operating environments in private and public sector

banks on the supply side. Dutta and Roy investigated internet growth from the perspective

of a developing country and developed a causal model using the System Dynamics (SD)

approach to assist a developing country like India in identifying the trend of Internet

diffusion as a result of various policy options pursued to foster internet diffusion in the

country.

3.6 FEATURES:

22
State Bank of India (SBI) e-banking service typically offers the following features:

1. Account Management: Users can view account balances, transaction history, and

statements online.

2. Funds Transfer: Allows users to transfer funds between their own accounts or to other

accounts within SBI or other banks using NEFT, RTGS, IMPS, or UPI.

3. Bill Payments: Enables users to pay utility bills, credit card bills, insurance premiums,

and more conveniently online.

4. Mobile Recharge: Users can recharge prepaid mobile phones, DTH services, etc.,

through the e-banking platform.

5. Investment Services: Some versions of SBI e-banking offer options for mutual fund

investments, buying and selling stocks, and managing investments.

6. Online Shopping: Integration with online shopping platforms to make secure payments.

7. e-Statement: Option to receive account statements electronically, reducing paper usage.

8. Account Management: Users can manage their accounts, including opening fixed

deposits, recurring deposits, and requesting cheque books.

9. Loan Services: Some versions of SBI e-banking allow users to apply for loans, check

eligibility, and track the status of their loan applications.

10. Customer Support: Access to customer support services such as chat, email, or phone

helplines for assistance with banking transactions or queries.

These features may vary slightly depending on the specific version or platform of SBI

e-banking being used.

3.7 HISTORY -SBI

23
 The State Bank of India (SBI) is a public sector banking and financial services

statutory body headquartered in Mumbai, Maharashtra, India. SBI is the world's 43rd

largest Bank and the only Indian Bank on the Fortune Global 500 list of the world's largest

companies for 2020, ranking 221st. It is India's largest public sector bank, with a 23 percent

asset market share and a 25 percent share of the overall loan and deposit market. The Bank

is descended from the Bank of Calcutta, which was established in 1806 via the Imperial

Bank of India, making it the Indian Subcontinent's oldest commercial Bank. The Bank of

Madras combined with the Bank of Calcutta and the Bank of Bombay, British India's other

two presidency banks, and to create the Imperial Bank of India, which later became the

State Bank of India in 1955. In 1955, the Indian government took control of the Imperial

Bank of India, with the Reserve Bank of India (India’s Central Bank) holding a 60% stake

and renaming the bank State Bank of India.

SBI’s network of branches in India and abroad offers a variety of banking services,

Including products for non-resident Indians (NRIs). SBI has 16 regional hubs and 57 zonal

Offices located in India’s most important cities. In India, SBI has over 24000 branches. Its

revenue in the financial year 2012–13 was 2.005 trillion (US$28 billion), with domestic

operations accounting for 95.35 percent of Revenue. In the same financial year, domestic

activities accounted for 88.37 percent of overall

Earnings. SBI organized 11,300 camps and opened over 3 million accounts by

September Under the Pradhan Mantri Jan Dhan Yojana, which was launched by the

government in August 2014 and included 2.1 million accounts in rural areas and 1.57

million accounts in Urban areas. The Bank had 191 overseas offices in 36 countries as of

2014–15, making it the Indian Bank with the most international presence

The Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June

1806 and Became the forerunner of the State Bank of India in the first decade of the

24
 nineteenth century. The Bank of Bengal was one of three Presidency banks, with the Bank

of Bombay (established on April 15, 1840) and the Bank of Madras (incorporated on 1 July

1843). Royal Charters culminated in the establishment of all three Presidency banks as

joint-stock Companies. These three banks had exclusive rights to issue paper currency until

1861 when

The Government of India took over the right with the Paper Currency Act. On January

27, 1921, the Presidency banks merged, and the reorganized banking body was given the

name Imperial Bank of India. The Imperial Bank of India remained a joint-stock company,

but it Was no longer backed by the government. The Reserve Bank of India, India’s Central

Bank, gained a controlling interest in the Imperial Bank of India under the terms of the

State Bank of India Act of 1955. The Imperial Bank of India became the State

Bank of India on July 1, 1955. Since the RBI is the country’s Banking regulatory body, the

government of India purchased the Reserve Bank of India’s Stake in SBI in 2008 to prevent

any possible conflict of interest. The State Bank of India (Subsidiary Banks) Act was

passed by the government in 1959. As a result, SBI acquired eight banks that had

previously been owned by princely

3.8 ELECTRONIC BANKING PRODUCTS AND SERVICES:

3.8.1 INTERNET BANKING:

Internet Banking lets you handle many banking transactions via your personal

computer. For instance, you may use your computer to view your account balance, request

transfers between accounts, and pay bills electronically. Internet banking system and

method in which a personal computer is connected by a network service provider directly to

a host computer system of a bank such that customer service requests can be processed

automatically without need for intervention by customer service representatives. The

25
system is capable of distinguishing between those customer service requests which are

capable of automated fulfilment and those requests which require handling by a customer

service representative. The system is integrated with the host computer system of the bank

so that the remote banking customer can access other automated services of the bank. The

method of the invention includes the steps of inputting a customer banking request from

among a menu of banking requests at a remote personnel computer; transmitting the

banking requests to a host computer over a network; receiving the request at the host

computer; identifying the type of customer banking request received; automatic logging of

the service request, comparing the received request to a stored table of request types, each

of the request types having an attribute to indicate whether the request type is capable of

being fulfilled by a customer service representative or by an automated system; and,

depending upon the attribute, directing the request either to a queue for handling by a

customer service representative or to a queue for processing by an automated system.

3.8.2 AUTOMATED TELLER MACHINES (ATM):

An unattended electronic machine in a public place, connected to a data system and

related equipment and activated by a bank customer to obtain cash withdrawals and other

banking services. Also called automatic teller machine, cash machine; Also called money

machine. An automated teller machine or automatic teller machine (ATM) is an electronic

computerized telecommunications device that allows a financial institution's customers to

directly use a secure method of communication to access their bank accounts, order or make

cash withdrawals (or cash advances using a credit card) and check their account balances

without the need for a human bank teller (or cashier in the UK). Many ATMs also allow

people to deposit cash or cheques, transfer money between their bank accounts, top up their

mobile phones' pre-paid accounts or even buy postage stamps.

3.8.3 TELE BANKING:

26
 Undertaking a host of banking related services including financial transactions from

the convenience of customers chosen place anywhere across the GLOBE and any time of

date and night has now been made possible by introducing on-line Tele banking services.

By dialing the given Tele banking number through a landline or a mobile from anywhere,

the customer can access his account and by following the user-friendly menu, entire

banking can be done through

Interactive Voice Response (IVR) system. With sufficient numbers of hunting lines

made available, customer call will hardly fail. The system is bi-lingual and has following

facilities offered

➢ Automatic balance voice out for the default account.

➢ Balance inquiry and transaction inquiry in all

➢ Inquiry of all term deposit account

➢ Statement of account by Fax, e-mail or ordinary mail.

➢ Cheque book request

➢ Stop payment which is on-line and instantaneous

➢ Transfer of funds with CBS which is automatic and instantaneous

➢ Utility Bill Payments

➢ Renewal of term deposit which is automatic and instantaneous ➢ Voice out

of last five transactions.

3.8.4 SMART CARD:

A smart card usually contains an embedded 8-bit microprocessor (a kind of computer

chip). The microprocessor is under a contact pad on one side of the card. Think of the

27
microprocessor as replacing the usual magnetic stripe present on a credit card or debit

card.The microprocessor on the smart card is there for security. The host computer and card

reader actually "talk" to the microprocessor. The microprocessor enforces access to the data

on the card. The chips in these cards are capable of many kinds of transactions.

3.8.5 DEBIT CARD:

Debit cards are also known as check cards. Debit cards look like credit cards or ATM

(automated teller machine) cards, but operate like cash or a personal check. Debit cards are

different from credit cards. While a credit card is a way to "pay later," a debit card is a way

to "pay now." When you use a debit card, your money is quickly deducted from your

checking or savings account.Debit cards are accepted at many locations, including grocery

stores, retail stores, gasoline stations, and restaurants. You can use your card anywhere

merchants display your card's brand name or logo. They offer an alternative to carrying a

cheque book or cash.

3.8.6 E-CHEQUE:

• An e-Cheque is the electronic version or representation of paper cheque.

• The Information and Legal Framework on the E-Cheque is the same as that of the

paper cheque’s.

• It can now be used in place of paper cheques to do any and all remote transactions.

• An E-cheque work the same way a cheque does, the cheque writer "writes" the

eCheque using one of many types of electronic devices and "gives" the e-Cheque to

the payee electronically. The payee "deposits" the Electronic Cheque receives

credit, and the payee's bank "clears" the e-Cheque to the paying bank. The paying

28
 bank validates the e-Cheque and then "charges" the check writer's account for the

check.

3.8.7 MOBILE BANKING:

The traditional brick and mortar is done from fixed branch premises, where the

customer has to go personally for carrying out business transactions. Through mobile

banking the customer can conduct a host of banking transactions and inquiries through the

mobile. Mobile banking can also be carried through a mobile van with or without

computerized banking system. The Mobil even moves from place to place on designated

routes at designated hours and the customers can transact their banking business, such as

deposit, withdrawal, cheque collection , draft issuance, pass book updates, etc. Mobile

banking helps the customer to do his account management, electronically which was earlier

possible through internet banking. Mobile banking service is divided into two categories:

(i) SMS Based: This service can be availed from any mobile having SMS based

service. The customer types the required keywords and PIN number and send the

message to the predefined number.

(ii) Menu Based: The customer downloads and installs the application on the mobile.

Whenever the customer wants any sort of information, he selects the application,

selects the request from menu and sends the request to the designated number. This

request is internally sent as SMS text. The central computer at bank sends back the

result to him.

3.9 FUNCTIONALITIES OF MOBILE BANKING:

29
 Mobile banking functionalities have been divided into three parts. In public category,

the customer can openly access the exchange rates and interest rates of the economy as well

as the banks. In private category, the customer can check the account balances, can

administer the credit lines and can check the transactions. While conducting the

transactions, mobile banking helps in transfer of funds, and in paying invoices.

3.9.1 PHONE BANKING:

Phone banking or tele-banking refers to the authorized customers to use special

telephone number of the bank. This facility is available with the help of a voice response

system (VRS). This system basically accepts only TONE dialled input (For callers phone

instruments for dialling necessary numbers) and suitable voice response message/

information to the caller (Kaptan and Choubey, 2003). Telebanking is of two kinds: (i)

Public Enquiry: General information about banking services can be obtained by customers

and non-customers like dialling a special enquiry number of the bank (call centre) and

desired information can be obtained.

(ii) Private Enquiry: This relates to account specific information and can be accessed

only by accountholder by disclosing personal identification number (PIN) and customer

ID.

3.9.2 SOCIETY FOR WORLD-WIDE INTER- BANKING FINANCIAL

TELECOMMUNICATION (SWIFT):

It is a computerized message system which links banks around the world. In 1996, it

was updated from centralized system to decentralized system. SWIFT is a co-operative

organization formed by international banks and financial institutions. The member banks

are shareholders ofthis society. It provides guarantee to carry messages without any
30
mutilation of the message. The network provides round the clock service to participating

banks. It aims to improve the speed and service in order to prevent the individual bank

setting up its own computerized messaging system in opposition.

3.9.3 ELECTRONIC DATA INTERCHANGE (EDI):

EDI is the exchange of documents in the standardized electronic form, between

organizations, in automated manners, directly from a computer application in one

organization to an application in another. EDI can be compared and contrasted with

electronic mail. Email enables free-format textual messages to be electronically transmitted

from one person to another. EDI, on the other hand, supports structured business messages

(those which are expressed in hard copy, pre-printed forms or business documents) and

transmits them electronically between computer applications rather than between people

(Kaptan and Choubey, 2003).

3.9.4 ELECTRONIC FUND TRANSFER (EFT):

In the present age of integrated technology consisting of computers and

communication facility, distances need no longer be constraint in providing customer

service. EFT system hosted and operated by the RBI, permits transfer of funds, from any

account to any other account at any branch of any member bank in any other city (Jain,

2006). In other words, electronic fund transfer facilitates the quick movement of deposit

money from one bank account of one customer to the bank account of another customer.

In this system, the sender and the receiver may be located at different cities. As an

important tool of customer services, EFT system addresses the needs of individual

customers to transfer money from one place to another within a day or two.

31
 Following are the participants of this scheme:

❖ Individual customer through their banks/ branches.

❖ Service branches of the bank.

❖ Reserve Bank of India (National Clearing Centre and deposit account of

RBI)

3.9.5 E-PURSE: E-commerce has been marked as a steady trend towards growth of

electronic mode of payments against paper based instruments. European Central Bank

(ECB) defined, “E-Moneyas electronic store of monetary value on a technical device and

used to making payments other than the issuer without the involvement of bank accounts in

the transaction but acting as a prepaid bearing instrument”.

32
 CHAPTER Ⅳ

DATA ANALYSIS AND INTERPRETATION:

4.1 GENDER OF RESPONDENTS

Both male and female are involved in using e-banking. Table 4.1 shows gender wise classification

of respondents.

TABLE 4.1

Age Wise Classification

GENDER NUMBER OF PERCENTAGE
RESPONDENTS

MALE 36 76

FEMALE 12 24

TOTAL 50 100

Source: primary data

The above table 4.1 shows that 24percent of the respondents are female and 76 percentageof

the respondents are male.

It can be seen that majority 76% of the respondents are male.

33
4.2 AGE OF RESPONDENTS

Age wise distribution of respondent involved in e-banking is given in the table 4.2

TABLE 4.2

Age Wise Classification

AGE GROUP NUMBER OF PERCENTAGE
RESPONDENTS

BELOW 30 31 62

30 – 40 13 26

40 – 50 3 6

ABOVE 50 3 6

TOTAL 50 100

Source: primary data

From the above table it is observed that, 62 percent of the respondents belongs to the age of group

below 30 years, 26 percent of the respondents belongs to the age group between 30-40 years, 6

percent of the respondents belongs to the age group between 40-50 years and the respondents

belongs to age group of above 50 years.

This is shows that majority below 30 years responders are more attracted to ebanking services

when compare other age groups.

34
4.3 MARITIAL STATUS

Martial status is an important factor to determine the preference of cashless transaction. Following

table 4.3 is shows it clearly

TABLE 4.3

Marital Status Wise Classification

MARITIAL NUMBER OF PERCENTAGE
RESPONDENTS
STATUS

MARRIED 23 46

UNMARRIED 27 54

TOTAL 50 100

Source: Primary data

The above table 4.3 shows that marital status of the respondents. It clearly reveals that 54 percent

of the respondents are unmarried and 46 percent of the respondents are married. It can be seen that

majority 54% of the respondents are unmarried

4.4 MONTHLY INCOME

The following table shows monthly income wise distribution of respondents

35
 TABLE 4.4

Monthly Income Wise Classification

MONTHLY NUMBER OF PERCENTAGE
RESPONDENTS
INCOME

LESS THAN 10 20

Rs.20,000

Rs.20,000-30,000 23 46

Rs.30,000-40,000 10 20

ABOVE Rs.40,000 7 14

TOTAL 50 100

Source: primary data

The above table 4.4 shows that 20 percent of the respondents earn monthly income of less than Rs.

20,000, 46 percent of the respondents earn monthly income of Rs. 20,000-30,000, 20 percent of the

respondents earn monthly income of Rs. 30,000-40,000 and 14 percent of the respondents earn

monthly income of above Rs. 40,000.

It can be seen that majority 46% of the respondents earn monthly income of Rs.

20,000-30,000 .

4.5 OCCUPATION

Occupation is an important factor which decides the standard of living of the people. Following

table shows the occupation status of respondents

36
 TABLE4.5

Occupation Wise Classification

OCCUPATION NUMBER OF PERCENTAGE
RESPONDENTS
STATUS

PROFESSIONAL 10 20

BUSINESSMEN 13 26

GOVT. SERVICE 9 18

STUDENT 18 36

TOTAL 50 100

Source: primary data

The above table 4.5 shows that, 20 percent of the respondents are professionals, 26 percent of the

respondents are businessmen, 18 percent of the respondents are engaged in government service and

36 percent of the respondents are students.

It can be seen that majority 36% of the respondents are students.

37
 NUMBER OF RESPONDENTS

PROFESSIONAL BUSINESSMEN GOVT. SERVICE STUDENT

4.13 USAGE OF E-BANKING SERVICE?

38
 E-banking services is familiarised by banks to reduce the waste of paper and increase

digitalization. Below table shows how long respondents using e-banking services.

TABLE 4.6

Base on Usage of E-Banking Service.

DURATION NUMBER OF PERCENTAGE
RESPONDENTS

< 1 MONTH 13 26

1 – 6 MONTH 12 24

6 – 12 MONTH 20 40

< 1 YEAR 5 10

TOTAL 50 100

Source: primary data

The above table 4.6 shows that 26 percent of the respondents are using e-

banking service for less than 1 month, 24 percent of the respondents are using e-banking

service for1 – 6month,40 percent of the respondents are using e-banking services for 6 – 12 month

and 10 percent of the respondents are using e-banking service for above 1 year.

It can be seen that majority 40% of the respondents are using e-banking service for 1 – 6 month.

4.7 DIFFERENT CHANNELS OF E-BANKING

Internet banking can be accessed through different channels. The following table shows the

channels of internet banking.

39
 TABLE 4.7

Based on Different Channels of E-Banking

DIFFERENT NUMBER OF PERCENTAGE
RESPONDENTS
CHANNELS

ELECTRONIC FUND 10 20

TRANSFER

MOBILE BANKING 21 42

ATM BANKING 11 22

SMS BANKING 8 16

TOTAL 50 100

Source: primary data

The above table 4.7 shows that 20 percent of the respondents are using electronic fund transfer, 42

percent of the respondents are using mobile banking, 22 percent of the respondents are using ATM

banking and 16 percent of the respondents are using SMS banking.

It can be seen that majority 42% of the respondents are using mobile banking.

40
 DIFFERENT CHANNELS

EFT

ATM BANKING

MOBILE BANKING

ONLINE BANKING

0 5 10 15 20 25

DIFFERENT CHANNELS

4.8 SBI BANKING SERVICES

During the current age of digitalization SBI bank provides variety of services. SBI banking

services respondents has the knowledge off is given in the below table.

TABLE 4.8

41
 BANKING SERVICE NUMBER OF PERCENTAGE
RESPONDENTS

DEPOSIT ACCOUNT 16 32

LOANS 14 28

CREDIT CARD 13 26

INVESTMENT 7 14

TOTAL 50 100

Source: primary data

The above table 4.8 shows that 32 percent of the respondents are using SBI deposit account, 28

percent of the respondents are using SBI loans, 26 percent of the respondents are using SBI credit

card ,14 percent of the respondents are using SBI investment.

It can be seen that majority 32% of the respondents are using SBIdeposit account.

4.9 PRIMARY USE OF E BANKING SERVICE

Number of users of e-banking increases day by day.So the below table shows the primary use

of e banking services.

TABLE 4.9

42
 UTILITY NUMBER OF PERCENTAGE
RESPONDENTS

TRANSFER FUND 20 40
THROUGH ONLINE

ONLINE PURCHASE 10 20

ONLINE PAYMENT 9 18

CHECKING BANK 11 22

STATEMENT

TOTAL 50 100

Source: primary data

The above table 4.9 shows that 40 percent of the respondents are using e-banking service for

transfer fund through online, 20 percent of the respondents are using e-banking service for online

purchase, 18 percent of the respondents are using e-banking service for online payment ,22 percent

of the respondents are using e-banking service for checking bank statement.

It can be seen that majority 40% of the respondents are using e-banking service for transfer fund

through online.

4.10 TYPES OF ACCOUNT IN SBI BANK.

The number of account schemes introduced by the banks are increasing day by day. The

following table which shows the respondents that use the type of SBI bank account.

TABLE 4.10

43
 ACCOUNTS NUMBER OF PERCENTAGE
RESPONDENTS

SAVINGS ACCOUNT 18 36

CURRENT ACCOUNT 5 10

FIXED DEPOSIT 15 30

ACCOUNT

RECURRING 12 24
DEPOSIT ACCOUNT

TOTAL 50 100

Source: primary data

The above table 4.10 shows that 36 percent of the respondents are using saving

account. 10percent of the respondents are using current account, 30percent of the respondents are

using fixed deposit account, 24percent of the respondents are using recurring deposit account.

It can be seen that majority 36% of the respondents are using saving account.

4.11 COMMUNICATION OF BANK.

Communication of a bank is necessary for the bank to keep in touch with the customer and to

help them. Below table shows the ways that the bank communicates to its customers.

TABLE 4.11
COMMUNICATION NUMBER OF PERCENTAGE
RESPONDENTS
MODES

44
 VIA SMS 20 40

VIA E-MAIL 8 16

VIA PHONE CALL 10 20

VIA LETTERS 12 24

TOTAL 50 100

Source: primary data

The above table 4.11 shows that 40 percent of the respondents communicated by bank through

SMS, 16percentof the respondents communicated by bank through e-mail, 20percent of the

respondents communicated by bank through phone call and 24 percent of the respondents

communicated by bank through post letters.

It can be seen that majority 40% of the respondents communicated by bank through

SMS.

45
 COMMUNICATION MODES

20

18

16

14

12

10

0
VIA SMS VIA EMAIL VIA PHONE VIA LETTER

COMMUNICATION MODES

4.12 SOURCE OF AWARENESS

Nowadays banks are promoting their services through various modes. The table given below

shows the source through which the customer had got the attention of SBI bank.

TABLE 4.12
46
 MODE OF NUMBER OF PERCENTAGE
INFORMATION RESPONDENTS

DISPLAY OF 8 16
INFORMATION

BANK EXECUTIVE 12 24

ADVERTISEMENT 10 20

FRIENDS/RELATIVES 20 40

TOTAL 50 100

Source: primary data

The above table 4.12 shows that 16 percent of the respondents joined SBI E-

banking service through display of information, 24 percent of the respondents joined SBI E-banking

service through bank executive, 20 percent of the respondents joined SBI E-banking service through

advertisement, 40percentof the respondents joined SBI E-banking service through friends/relatives.

It can be seen that majority 40% of the respondents joined SBI E-banking service

through friends/relatives.
4.6 EDUCATIONAL QUALIFICATION CLASSIFICATION OF RESPONDENTS

Education ignites the mind of the people to learn about to adopt the new technique in their

personal and social life. Table 4.13 depicts the classification of the respondents according to their

education.

TABLE 4.13
EDUCATONAL NUMBER OF PERCENTAGE

QUALIFICATION RESPONDENTS

SSLC 14 28

47
HSC 8 16

UG DEGREE 12 24

PG DEGREE 9 18

DIPLOMA 7 14

TOTAL 50 100

Source: primary data

The above table 4.13 shows the educational qualification of respondents that 28

percent of the respondents qualification level is SSLC, 16 percent of the respondents qualification

level is HSC, 24 percent of the respondents qualification level is UG degree,18 percent of the

respondents qualification level is PG degree, 14 percent of the respondents qualification level is

Diploma.

It can be seen that majority 28% of the respondents qualification level is SSLC.

4.14 USAGE SBI E-BANKING APPLICATION

E-banking services has grown in both technological way and popularity. The following table shows

the different means to use e-banking.

TABLE 4.14
APPLICATION NUMBER OF PERCENTAGE
RESPONDENTS

WEBSITE 10 20

YONO APPLICATION 6 12

48
 GOOGLE PAY 15 30

PHONE PAY 9 18

PAYTM 10 20

TOTAL 50 100

Source: primary data

The above table 4.13 shows that number of respondents using E-banking service

application, 20 percent of the respondents using website, 12percent of the respondents using yono

application, 30percent of the respondents using google pay, 18 percent of the respondents using

phone pay, 20percent of the respondents using Paytm.

It can be seen that majority 30% of the respondents are using google pay

application.

4.15 REASON TO PREFER E-BANKING

Usage of e-banking has increased widely due to various preferences. Some of the preference

of the respondents are given in the table below.

TABLE 4.15
REASONS NUMBER OF PERCENTAGE
RESPONDENTS

ALL TIME 20 40
AVAILABILITY

EASE PAYMENT 15 30

TIME SAVING 9 18

COMFORT TO USE 6 12

49
 TOTAL 50 100

Source: primary data

The above table 4.15 shows the reason to prefer e-banking, 40 percent of the

respondents prefer E-Banking service for all time availability, 30 percent of the respondents of ease

payment, 18 percent of the respondents of time saving, 12percent of the respondents prefer

EBanking service for comfort to use.

It can be seen that majority 40% of the respondents use because of all time

availability.

4.16 E-BANKING RELATED ISSUES

The e-banking service users face lot of problems. The following table provides e-banking

problems faced by users

TABLE 4.16
ISSUES FACED NUMBER OF PERCENTAGE
RESPONDENTS

LACK OF KNOWLEDGE 15 30

OF COMPUTER

CHANGE IN MOBILE 20 40

NUMBER

FEAR OF LEAKAGE OF 9 18

INFORMATION

PASSWORD 6 12
FORGOTTEN

TOTAL 50 100

50
 Source:primary data

The above table 4.16 shows the issues in E-banking service,30 percent of the respondents

problem is lack of knowledge of computers,40 percent of the respondents change in mobile

number,18 percent of the respondents of fear of leakage of information,12 percent of the

respondents problem is password forgotten.

It can be seen that majority 40% of the respondents problem is change in mobile number.

4.17 FREQUENCY OF E-BANKING USAGE

The frequency of the e-banking usage for each respondents depends. The below table shows

the respondents frequency of e-banking services.

TABLE 4.17
FREQUENCY NUMBER OF PERCENTAGE
RESPONDENTS

DAILY 15 30

WEEKLY 20 40

MONTHLY 10 20

RARELY 5 10

TOTAL 50 100

Source:primary data

The above table 4.17 shows the frequency of E-banking usage, 30 percent of the respondents use

E-banking service daily, 40 percent of the respondents use E-banking service weekly, 20percent of

the respondents use E-banking service monthly, 5 percent of the respondents use e-banking service

rarely.

51
 It can be seen that majority 40% of the respondents use E-banking service weekly.

4.18 PREFERENCE TOWARDS SBI

State bank of India is a bank which keeps modernizing day by day. It has greatly improved its

e-banking website and application. The following table provides the reason why people prefer SBI.

TABLE 4.18
REASONS NUMBER OF PERCENTAGE
RESPONDENTS

GOOD CUSTOMER 5 10

SERVICE

PUBLIC SECTOR BANK 20 40

WIDE NETWORK 10 20

LOW INTEREST RATE 15 30

TOTAL 50 100

Source: Primary data

The above table 4.18 shows the reasons for people chose SBI, 10 percent of the

respondents prefer SBI E-banking service for good customer service, 40 percent of the respondents

prefer SBI for a public sector bank, 20 percent of the respondents prefer SBI because of wide

network, 30 percent of the respondents prefer SBI because of low interest rate.

It can be seen that majority 40% of the respondents prefer SBI because it is a public sector bank.

52
4.19 DISADVANTAGES OF OFFLINE BANKING

State bank of India has various branches in every district. The following table shows the

disadvantages of visiting offline SBI bank kuzithurai branch.

TABLE4.19
DISADVANTAGES NUMBER OF PERCENTAGE
RESPONDENTS

WAITING TIME 10 20

DISTANCE 14 28

QUALITY OF SERVICE 10 20

NON FLEXIBLE 16 32
BANKING TIME

TOTAL 50 100

Source: Primary data

The above table 4.19 shows the reasons for people do not prefer offline SBI banking, 20 percent

of the respondents do not prefer SBI offline bank because of waiting time, 28 percent of the

respondents do not prefer SBI offline bank because of distance, 20 percent of the respondents do not

prefer SBI offline bank because of quality of service, 32 percent of the respondentsdo not prefer SBI

offline bank because of non flexible banking time.

It can be seen that majority 30% of the respondents do not prefer SBI offline bank because of non

flexible banking time.

53
4.20 REASON FOR NOT USING E-BANKING

People in the lots of the population do not use e-banking because of many reasons. The

following table shows the reasons that people are not using e- banking.

TABLE 4.20
REASONS NUMBER OF PERCENTAGE
RESPONDENTS

LACK OF AWARENESS 5 10

LACK OF INTERNET 10 20

ACCESS

SECURITY CONCERN 15 30

DIFFICULT TO 20 40

NAVIGATE

TOTAL 50 100

Source: Primary data

The above table 4.20 shows the reasons for people do not use E-banking, 10 percent of the

respondents do not use E-banking because of lack of awareness, 20 percent of the respondents do

not use E-banking because of lack of internet, 30 percent of the respondents do not use E-banking

because security concern, 40 percent of the respondents do not use e-banking

because it is difficult to navigate.

It can be seen that majority 40% of the respondents do not use E-banking because it is

difficult to navigate.

54
4.21 SOLVING E-BANKING ISSUES

Due to the increase in the usage of e-banking issues faced by the costumers also increases. The

following table shows the ways that the customers solve their issues.

TABLE 4.21
METHODS NUMBER OF PERCENTAGE
RESPONDENTS

CUSTOMER SERVICE 10 20

VISITING THE BANK 11 22

BRANCH

FRIEND HELPED 19 38

SOLVED IT MYSELF 10 20

TOTAL 50 100

Source: Primary data

The above table 4.21 shows the methods people solve issues faced in Ebanking, 20 percent

of the respondents solve issues of E-banking through customer service, 22 percent of the

respondents solve issues of E-banking through visiting the bank branch, 38 percent of the

respondents solve issues of E-banking through friend helped, 20 percent of the respondents solve

issues of E-banking through solved it myself.

It can be seen that majority 38% of the respondents solve issues of E-banking

through friends.

55
4.22 SBI E-BANKING SATISFACTION

SBI e-banking services are used in widely used by the customers. The following table shows the

customer satisfaction.

TABLE 4.22
SATISFACTION NUMBER OF PERCENTAGE
RESPONDENTS
RATING

HIGHLY SATISFIED 4 8

SATISFIED 18 36

NEUTRAL 10 20

DISSATISFIED 12 24

HIGHLY DISSATISFIED 6 12

TOTAL 50 100

Source: Primary data

The above table 4.22 shows the satisfaction of the people using SBI Ebanking, 8 percent of

the respondents are highly satisfied, 36 percent of the respondents are satisfied, 20 percent of the

respondents are neutral, 24 percent of the respondents are dissatisfied and 12 percent are highly

dissatisfied.

It can be seen that majority 36% of the respondents are satisfied.

4.23 PREFERENCE OF SBI E-BANKING

SBI e-banking has been one of the fast growing government oriented banks. The following

table shows the reasons people SBI e-banking.

TABLE 4.23

56
 REASONS NUMBER OF PERCENTAGE
RESPONDENTS

HASSLE FREE 14 28

CONVENIENCE 16 32

GOVERNMENT BANK 15 30

EASY NAVIGATION 5 10

TOTAL 50 100

Source: Primary data

The above table 4.18 shows the reasons for people chose SBI e-banking, 28 percent of the

respondents prefer SBI E-banking because of hassle free, 32 percent of the respondents prefer SBI

E-banking because of convenience, 30 percent of the respondents prefer SBI E-banking because it is

a government bank,10 percent of the respondents prefer SBI E-banking becauseof easy navigation.

It can be seen that majority 32% of the respondents prefer SBI E-banking because of convenience.

4.24 PROBLEMS SOLVED BY BANK

SBI e-banking has proper customer service but is it effective. The following table shows the

customers response on whether the problems are solved effectively.

TABLE 4.24
RESPONSE NUMDER OF PERCENTAGE
RESPONDENTS

YES 10 20

NEVER 8 16

SOMETIMES 20 40

57
 LACK OF PROPER 12 24
UNDERSTANDING

TOTAL 50 100

Source: Primary data

The above table 4.18 shows the customers problems are solved effectively, 20 percent of the

respondents said yes, 16 percent of the respondents said never, 40 percent of the respondents said

sometimes and 24 percent of the respondents said lack of proper understanding between customer

care and the customer.

It can be seen that majority 40% of the respondents are said customers problem are solved

efficiency sometimes.

CHAPTER Ⅴ

5.1FINDINGS

• The majority of the respondents 76 percent are in the group gender of male • The most of

the respondents 50 percent belong to the age group of below 30 years.

• The large part of the respondents 54per`centis unmarried.

• More of the respondents 46 percent have monthly income of Rs.20000 – 30000.

• Thereby concluded that the majorityof the respondents 36 percent are students.

• The major part of the respondents 40 percent is using e-banking for about 6 – 12 months.

• The majority of the respondents 42 percent are using mobile banking.

• The most of the respondents 32 percent are using deposit account.

58
• The majority of the respondents 40% are using transfer fund online as the primary use of banking

service.

• The greater part of the respondents 36 percent is using Savings account as the type of account in

SBI.

• The majority of the respondents responded that the bank use 40 percent of replies through SMS as

the primary source of communication.

• The majority of the respondents came to use of e-banking through friends and relatives.

• It is concluded that majority of the population 28 percent using e-banking has the educational

qualification of SSLC.

• Majority of the population 30 percent use google pay as their primary means of e-banking.

• It came to the findings that 40 percent use e-banking because of all time availability.

• Major difficulty faced by the customer of SBI is change in the mobile number up to 40 percent of

the people agree on that conclusion.

• Most of the frequency of using the e-banking is 40 percent use weekly.

• The greater part of the population 40 percent use SBI because it is a public sector bank.
• The majority of the population says the disadvantages of offline banking is non flexible banking

time.

• It came to the findings that majority of the population 40 percent do not use e-banking because of

the difficulty to navigate.

• Most of the customers 38 percent solve the issues faced by e-banking through friends.

• The majority of 36 percent use the SBI e-banking service with satisfaction.

• Major 32 percent of the population use SBI e-banking service because it is convenience.

• 40 percent of the respondents say sometimes the banks solved the customer problems effectively.

59
5.2 SUGGESTION

1. Many respondents felt that the hindrance in adopting cashless economy is the digital and

technological illiteracy among the people of India, so to overcome this problem SBI need to

take initiatives in educating the people about the same.

2. As majority of the crowd in our country belong to the rural areas it is very important to

educate the people about e- banking transactions and about e- wallets.

3. Many of the respondents felt that e-banking mode of transactions in India is not safe so the

government should make electronic payments infrastructure completely safe and secure.

4. To increase more digital payments the SBI should bring transparency and efficiency in the

transactions.

5. The government should conduct a financial literacy campaign to educate the population about

the digital modes of payment.

60
 6. SBI should make the infrastructure capable and secure so that there are minimum fraud and

thefts. These are some of the suggestions which can help better implementation of e-banking

in India.

HYPOTHESIS

CHI-SQUARE TEST

The chi-square test is the most popular non parametric test of significance in social science research.

It is used to make comparisons between two or more nominal variables. Unlike the order tests of

significance, the chi- square is used to make comparisons between mean scores. This test evaluate

whether there is any significant difference between observed frequencies and the expected

frequencies.

The formula used for chi-square test analysis is given below.

Chi-square=(0−𝐸)2
𝐸

O=observed frequency

E= expected frequency

E=RT x CT/GT

61
CT-Column total

RT-Row total

GT-Grand total

Degrees of freedom can be find out by using this formula

(C-1) (R-1)

C Number of columns

R-Number of rows

Ho: There is no significant relationship between age and types of account.

62
 TABLE 5.1

CALCULATION OF CHISQUARE VALUE

O E O-E (𝟎−𝐄)𝟐 (𝟎−𝐄)𝟐

𝐄
13 9.5 3.5 12.25 1.289

10 7 3 9 1.286

1 4 -3 9 2.25

1 4.5 -3.5 12.25 2.722

2 2.28 -0.28 0.0784 0.0344

1 1.68 -0.68 0.4624 0.2752

1 0.96 0.04 0.0016 0.00167

2 1.08 0.92 0.8464 0.7837

2 2.28 -0.28 0.0784 0.0344

1 1.68 -0.68 0.4624 0.2752

1 0.96 0.04 0.0016 0.00167

63
 2 1.08 0.92 0.8464 0.7837

2 4.94 -2.94 8.6436 1.7497

2 3.64 -1.64 2.6896 0.7389

5 2.08 2.92 8.5264 4.0992

4 2.34 1.66 2.7556 1.1776

TOTAL 17.5023

Degree of freedom = (r-1) (c-1)

= (4-1) (4-1)

= 3*3

= 9

5% level of significance

Table value = 16.92

Calculated value = 17.5023

Calculated value is greater than the table value. Hence the hypothesis is rejected. Hence there is a

lesser relation ship between age and type of account.

64
 APPENDIX I

HO :There is lesser relationship between Age & type of a/c

TABLE 5.2

OBSERVED FREQUENCY
AGE TYPES OF ACCOUNT

SAVINGS CURRENT FIXED RECCURING TOTAL

ACCOUNT ACCOUNT
DEPOSIT DEPOSIT

ACCOUNT ACCOUNT

BELOW 30 13 10 1 1 25

BETWEEN 2 1 1 2 6

30-40

BETWEEN 2 1 1 2 6

40-50

50 2 2 5 4 13

YEARSABO

VE

TOTAL 19 14 8 9 50

Calculation of expectancy frequency.

65
E11 = 25x19= 9.5
50

E12 =25
x14= 7
50

E13 =25x8= 4
50

E14 =25 x9=

4.5
50

E21=6 x19=
2.28
50

E22= 6 x14=
1.68 50

E23=6 x8= 0.96

50

E24=6 x9= 1.08

50

E31=6 x19=
2.28
50

E32=6 x14=
1.68
50

66
E33=6 x8= 0.96
50

E34=6 x9= 1.08

50

E41=13 x19=
4.94
50

E42=13 x14=
3.64
50

E43= 13 x8=
2.08
50

E44 = 13x9= 2.34

50

67
 RELATIONSHIP BETWEEN INCOME AND E-BANKING CHANNELS

TABLE 5.3
O E O-E (𝟎−𝑬)𝟐 (𝟎−𝑬)𝟐

𝑬
1 2.86 -1.86 3.4596 1.2097

3 3.74 -0.74 0.5476 0.146

6 3.3 2.7 7.29 2.209

1 1.1 -0.1 0.01 0.009

3 3.12 -0.12 0.0144 0.0046

4 4.08 -0.08 0.0064 0.00157

4 3.6 0.4 0.16 0.044

1 1.2 -0.2 0.04 0.033

3 3.38 -0.38 0.1444 0.043

5 4.42 0.58 0.3364 0.0761

3 3.9 -0.9 0.81 0.207

2 1.3 0.7 0.49 0.377

6 3.64 2.36 5.5696 1.530

5 4.76 0.24 0.0576 0.012

2 4.2 2.2 4.84 1.1523

1 1.4 -0.4 0.16 0.1143

TOTAL 7.16857

68
Degree of freedom = (r-1) (c-1)

= (4-1) (4-1)

= 3*3

= 9

5% level of significance

Table value = 16.92

Calculated value = 7.16857

Calculated value is lesser than the table value. Hence the hypothesis is accepted. Hence there is a

significant relationship between income and e-banking channels.

TABLE 5.4

69
 OBSERVED FREQUENCY
MONTHLY CHANNELS OF E-BANKING

INOME
ELECTRONIC MOBILE ATM SMS TOTAL
BANKING BANKING BANKING
FUND

TRANSFER

LESS 1 3 6 1 11

THAN

Rs.20,000

Rs20,000- 3 4 4 1 12

30,000

Rs30,000- 3 5 3 2 13

40,000

ABOVE 6 5 2 1 14

Rs40,000

TOTAL 13 17 15 5 50

Calculation of expectancy frequency.

E11 = 11x13= 2.86

50

E12 =11x17= 3.74

50

E13 =11x15= 3.3

50

70
E14 =11x5= 1.1
50

E21 = 12x13= 3.12

50

E22 = 12x17= 4.08

50

E23 = 12x15= 3.6

50

E24 = 12x5= 1.2

50

E31 = 13x13= 3.38

50

E32 = 13x17= 4.42

50

E33 = 13x15= 3.9

50

E34 = 13x5= 1.3

50

E41 = 14x13= 3.64

50

E42 = 14x17= 4.76

50

71
 E43 = 14x15= 4.2
50

E44 = 14x5= 1.4

50

5.3 CONCLUSION

This study conclusion that the users must came to the knowledge and assimilation of E-

banking is not popular among the people born before the year 2000. Through proper distribution

channel and works of the bank towards its customers it can grow rapidly in larger scale. The

analysis and interpretation has given rise to constructive feedback on the E- banking facilities of SBI

and how far it has grown in the daily lives of the customers and with proper guidance it might grow

further and make our economy grow on the wider market. So SBI should focus more on navigating

the consumers, making E-banking as a part of their regular lives to increase the convenience of the

customers and making the lives of customers easier.

72
BIBLIOGRAPHY:

S S Kaptan and N S Choubay (2003) “Indian Banking in Electronic Era”, Sarup and

Sons Publisher Asiffulla A (2016) “Introduction to Electronic Banking” Edu creation

Publishers.

Safeena, R., Abdullah, & H. Date. (2010). Customer’s Perspective on EBusiness

Value: A Case Study On Internet Banking. Journal of InternetBanking and Commerce,

Volume 15, No. 1, pp 2

Sharma, H. (2011). Banker’s Perspective on E-Banking, NJRIM, Volume 1, No. 1.

NJRIM, Volume 1,No. 1, 1.

Krishnamoorthy, V. A. (2013). Internet Banking as a tool for Customer Relationship

Management – A Study on Customer Perspective. Indian Journal of Research, Volume 2,

Issue 2, 187-190.

Lakshmi Narayana et.al (2013) “A Study on Customer Satisfaction towards Online

Banking services With reference to Bangalore city.” International Journal of Research in

Management ISSN 2320-2793 (online).

Vimala (2015) “An Evaluative Study on Internet Banking Security among Selected Indian

Bank Customers “Amity Journal of Management Research

Reeta Clonia (2016) – “E-banking in India: Current and future prospects”

International Journal of Management & Business Studies

Solanki, U. (2018). Impact of E Banking on Customer Satisfaction. International

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Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470.

State Bank of India. (n.d.). Retrieved from Wikipedia:

https://en.wikipedia.org/wiki/State_Bank_of_India

C K Sunith. (2019) –“Customer Satisfaction in E-banking Services”. International

Journal of Business And Management Invention (IJBMI) ISSN (Online)

Jyotsna Sharma, J. S. (2020). Impact of E-Banking Service Quality on Customer

Satisfaction. International Journal of Recent Technology and Engineering (IJRTE) ISSN:

2277-3878, Volume-8 Issue-5.

74
APPENDIX

75
 QUESTIONNAIRE ON CUSTOMER PREFERENCES

Name:

1. Gender

(a) Male

(b) Female

2. Age

(a) Below 30

(b) Between 30-40

(c) Between 40-50

(d) Above 50 years

3. Educational qualification

(a) S S L C

(b) H S C

(c) UG Degree

(d) PG Degree

(e)Any other degree

76
4. Occupation

(a) Professional

(b) Businessmen

(c) Govt. service

(d) Student

5. Marital status

(a) Married

(b) Unmarried

6. Monthly income

(a) Less than 20000

(b) 20000-30000

(c) 30000-40000

(d) Above 40000

7. Which of the following means do you use for SBI e-banking?

(a) Website

(b)Yono Application

(c) Google pay

(d)Phone pay

(e)Paytm
8. How did you get to know about E-banking services of your Bank?

77
(a)Display information at Bank

(b)Bank executive

(c)Advertisement

(d)Friends/Relatives

9. Why do you prefer e-banking?

(a)All time availability

(b)Ease Payment

(c)Time saving

(d)Comfort of use

10. Problems Faced while Using E-Banking Services.

(a)Lack of knowledge of computers

(b)Problem of change in mobile number

(c)Fear of leakage of information

(d)Password forgotten

11. How long have you been using the internet banking service?

(a) Less than 1 month

(b) 1 to 6 months

(c) 6 to 12 months

(d) More than 1 year

12. By which channels of internet banking do you use?

(a)Electronic fund transfer

78
(b) Mobile banking

(c)SMS banking

(d)ATMbanking

13. How frequently do you use e banking service?

(a) Daily

(b) Weekly

(c) Monthly

(d) Rarely

14. Which of the following SBI banking service are you aware off?

(a) Deposit Account

(b) Loans

(c) Credit card (d) Investment

15. Why do you usee banking service primarily for?

(a) Transfer fund online

(b) Online Purchase

(c) Online Payment

(d) Checking of bank Statement

16. Respondents Have Type of Account in SBI Bank:

(a) Savings Account

(b) Current Account

79
(c) Fixed Deposit Account

(d) Recurring DepositAccount

17. Why do you prefer SBI?

(a) Good customer service

(b)Public sector bank

(c)Wide network

(d)Low interest rate

18.Why do you think lot of the population do not use e-banking?

(a)Lack of awareness

(b)Lack of internet access

(c)Security concern

(d)Difficult to navigate

19. What are the disadvantages of visiting SBI kuzithurai branch?

(a)Waiting time

(b)Distance

(c)Non flexible banking time

(d)Quality of service

20. How do bank communicate banking detail to you?

(a)via SMS

(b)via Email

80
(c)via phone call

(d)via letters

21. If yes how did you solve it?

(a). Customer service

(b)Visiting the bank branch

(c) My friend helped

(d) Solved it myself

22.How much are you satisfied from SBI e-banking services?

(a)Highly satisfied

(b)Satisfied

(c)Neutral

(d)Dissatisfied

(e)Highly dissatisfied

23.Why do you prefer SBI e-banking services?

(a) Hassle free

(b) Convenience

81
(c) government bank

(d) Easy navigation

24.If you have a problem regarding SBI e-banking, have the problem viewed and

solved by the bank?

(a)Yes

(b)Sometimes

(c)Lacks proper understanding

(d)Never

82