COMPARATIVE STUDY ON AWARENESS OF E- BANKING AMONG THE CUSTOMERS OF ICICI BANK AND HDFC BANK (A STUDY IN THE BRANCH OF HDFC AND ICICI BANK OF MANDI GOBINDGARH) A project report submitted to Panjab University, Chandigarh in the partial fulfillment for the award of the degree of BACHELOR BUSINESS ADMINISTRATION (Session:2010-2011) 1
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COMPARATIVE STUDY ON
AWARENESS OF E-BANKING
AMONG THE
CUSTOMERS OF ICICI BANK AND HDFC BANK
(A STUDY IN THE BRANCH OF HDFC AND ICICI BANK OF MANDI
GOBINDGARH)
A project report submitted to Panjab University, Chandigarh in the partial
fulfillment for the award of the degree of
BACHELOR BUSINESS ADMINISTRATION
(Session:2010-2011)
Under the guidance of: Submitted By:
Prof. Rishikesh Maurya Vishu Goyal
(Dept. of Business Administration) B.B.A. Final year
Class roll no. 1610
Uni. roll no.:18908000212
GOBINDGARH PUBLIC COLLEGE
ALOUR, KHANNA
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Declaration
I studying in Gobindgarh public college, Alour (khanna), Affiliated to Panjab
University, Chandigarh do hereby declare that this project report related to entitle
to E-banking has been prepared by me. After complete my dissertation in the same
as a part of requirement of the BBA3rd programme of Panjab University
Chandigarh (2010-11).
VISHU GOYAL
18908000212
2
Certificate
This is to certify that project, entitled “E-Banking” has submitted to the Panjab
University, Chandigarh in the partial fulfillment of the requirement of B.B.A3rd, is
a bonafied research work, carried out by Vishu Goyal. Pupin 18908000212, under
my supervision and that no part of his project report has been submitted for any
other degree.
The assistance and help receiving during the course of investigation has fully
acknowledged.
SIGNATURE:
RISHIKESH MAURYA
(Dept. of Business Administration)
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Acknowledgement
I would like to express my gratitude to all those who gave me the possibility to
complete this project.
I would thankful to Prof. Rishikesh Mauraya to continuous guidance.
In the end, I express our gratitude to my friends & family who inspired me in this
work without their inspirations the work was almost impossible.
VISHU GOYAL
B.B.A. Final year
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Contents
Declaration
Certificate
Acknowledgement
Executive summary
Page No.
(1)Introduction 9-18
(2)Company profile 19-26
(3)Objectives of study 27-28
(4)Scope of study 29-30
(5)Research methodology 31-33
(6) Limitations of study 34-35
(7)Data analysis 36-53
(9)Conclusion 54-56
(10)Suggestions 57-58
References 59-60
Annexure 61-62
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Executive summary
The project report on:
“ Awareness of E-banking among the customers of HDFC Bank & ICICI Bank ”
Project carried at:
ICICI & HDFC
Project objectives:
To study the awareness of E-banking among the customers of ICICI and
HDFC banks.
To study the mostly used services of E-Banking by the customers of HDFC
and ICICI bank.
Research methodology:
SAMPLING UNITS
The survey method of marketing research was adopted in this project. A
Questionnaire was prepared. Respondents were taken from various places of
Mandi Gobindgarh. The main stress of the survey was on the customers of HDFC
bank and ICICI bank operating in Mandi Gobindgarh.
SAMPLE SIZE
A sample size of 60 customers was considered of various age groups-youngsters,
middle-aged & old-aged.
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SAMPLING TECHNIQUE
In this study, convenience sampling technique was used.
RESEARCH PLAN
Research Planning is the process of developing the most efficient plan for
gathering the needed information.
DATA SOURCE
The major source of data is Primary and Secondary data.
PRIMARY DATA
Primary data is the data, which is collected afresh and for the first time, and thus
happen to be original in character. Primary data has been collected with the help of
questionnaires, which were filled by personally visiting the customers of banks.
SECONADRY DATA
Secondary data is the data which have already been collected by someone else and
which have already been passed through the statistical process. The secondary data
was gathered from the literature published by the company and websites.
Analyzing the information
The information collected from the survey was analyzed by using statistical, and
data interpretation technique. The analysis technique used in the study is:
Graphics and table
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Research Design
Research design specifies the procedure for conducting and controlling the
research projects.
Type of Research
The research is descriptive in nature. A descriptive Research is one in which state
of affair is described as it exists at present. The researcher has no control over the
variables.
Conclusion:
The basic objective of my research was to analyze the awareness among
customers for E-banking. 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 through promotion try to retain the customers. Banks
should look other financial institutions to increase the service base.
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INTRODUCTION
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INTRODUCTION
INTRODUCTION OF BANKING
Banking has come to occupy a vital position in a nation economy. In today’s
world, banking is a business that not only deals with borrowing, lending and
remittances of funds, but it is also an important instrument for fostering economic
growth. It is for this reason that commercial banks are considered the lifeblood of
today’s economic system. A well-planned, organized, efficient and viable banking
system is a necessary concomitant of economic and social infrastructure. In every
economy, the vital processes of production and consumption are significantly
affected by the aggregate money supply consisting of currency as well as demand
time deposits with banks. Banks have an important role to play in increasing the
nations saving rate, channelizing the available savings into high investment
priorities for fostering the process of capital formation, promoting entrepreneurial
activities and accelerating employment by better utilization of resources.
HISTORICAL ANALYSIS OF BANKING INSTITUTION
Banking is as old as civilization itself. Reports reveal that long before 2500 BC,
the babylonians had developed a complex system of lending and borrowing, and
holding money on deposit. In other parts of ancient world, financial and banking
systems were developed as men found a need for a standard of value that would
take place of cattle, grains, cloth, weapons or other things which they once used to
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barter or exchange. At first bones, shells, stones, feathers, and crude metals were
used as money. Slowly and slowly copper, silver and gold coins replaced these and
when men began wealth, they wanted a safe place to store their money. People
thought of temples as the safest place. However, the priests were not only the
bankers. About the year 605 BC the egibi family in Babylon carried on a banking
business that evidently thrived. The Chinese had invented paper cheques paper
money hundreds of years before they were used in the western world.
The Romans developed an advanced banking system that included for transferring
accounts, making loans, charging fees, uniting cheques for withdrawal of funds
and for various services. These banking activities were in operation through the 3 rd
century AD, with the fall of Rome all financial dealings ended.
Banks were re-established in Italy during the thirteenth and fourteenth centuries
and grew quickly in importance and size as Italians again became world wide
traders. It was from this period that the word ‘bank’ came. Money changers carried
on their business in the public squares, sitting behind portable benches on which
they displayed their coins. The word bancho (bench) symbolized the business and
was carried over into the Italian word banca french noun banque.
With the revival of trade between Italy and other parts of the known words, banks
sprang up elsewhere and intricate banking systems gradually evolved. Soon both
family and national banks prospered throughout Europe and played an important
role in Europe’s growth during the eighteenth and nineteenth centuries.
DEVELOPMENT OF AUTOMATION IN BANKING
Over the last 15 years, the computer or more generally, Electronic Data Processing
(EDP), has become an accepted tool in many organizations and has had a
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considerable impact on the organizational environment and its members. Still, EDP
developments within the banking industry were, until the mid-1960’s, confined
mainly to the large banks with deposits of over $ 100 million. In total, the study
anticipated that between1967-71 at least 3200 additional banks will start to use
computers, bringing the total to 55 percent of all commercial banks and accounting
for over 90 percent of total deposits.
There are several reasons why small to medium –sized banks were slow in
adopting the use of computers. In the beginning the main obstacle was the
hardware computer itself.
In addition to the lack of equipment, there existed almost a complete lack of
knowledge about what the computer could and should do for the banks. The larger
banks could afford to hire special staffs to plan and execute the introduction of
EDP into the organization and to develop the software needed for the operation.
Electronic banking
It is an umbrella term for the process by which a customer may perform banking
transactions electronically without visiting a brick-and-mortar institution. The
following terms all refer to one form or another of electronic banking: personal
computer (PC) banking, Internet banking, virtual banking, online banking, home
banking, remote electronic banking, and phone banking. PC banking and Internet
or online banking is the most frequently used designations. It should be noted,
however, that the terms used to describe the various types of electronic banking are
often used interchangeably.
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PC Banking
PC banking is a form of online banking that enables customers to execute bank
transactions from a PC via a modem. In most PC banking ventures, the bank offers
the customer a proprietary financial software program that allows the customer to
perform financial transactions from his or her home computer. The customer then
dials into the bank with his or her modem, downloads data, and runs the programs
that are resident on the customer's computer. Currently, many banks offer PC
banking systems that allow customers to obtain account balances and credit card
statements, pay bills, and transfer funds between accounts.
I-Banking
Internet banking, sometimes called online banking, is an outgrowth of PC banking.
Internet banking uses the Internet as the delivery channel by which to conduct
banking activity, for example, transferring funds, paying bills, viewing checking
and savings account balances, paying mortgages, and purchasing financial
instruments and certificates of deposit. An Internet banking customer accesses his
or her accounts from browser- software that runs Internet banking programs
resident on the bank's World Wide Web server, not on the user's PC. Net Banker
defines a “true Internet bank" as one that provides account balances and some
transactional capabilities to retail customers over the World Wide Web. Internet
banks are also known as virtual, cyber, net, interactive, or web banks.
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To date, more banks have established an advertising presence on the Internet-
primarily in the form of informational or interactive web sites-than have created
transactional web sites. However, a number of Banks that do not yet offer
transactional Internet banking services have indicated on their web sites that they
will offer such banking activities in the future.
Internet banks generally have lower operational and transactional costs than do
traditional brick-and-mortar banks; they are often able to offer low-cost checking
and high-yield Certificates of deposit. Internet banking is not limited to a physical
site; some Internet banks exist without physical branches, for example, Telebank
(Arlington, Virginia) and Banknet (UK). Further, in some cases, web banks are not
restricted to conducting transactions within national borders and have the ability to
make transactions involving large amounts of assets instantaneously. According to
industry analysts, electronic banking provides a variety of attractive possibilities
for remote account access, including:
Availability of inquiry and transaction services around the clock;
Worldwide connectivity;
Easy access to transaction data, both recent and historical; and
"Direct customer control of international movement of funds without
intermediation of financial institutions in customer's jurisdiction."
Definition of E-Banking
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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
In addition to traditional banking products and services, financial institutions can
provide a variety of services that have been designed or adapted to support e-
commerce. Management should understand these services and the risks they pose
to the institution. This section discusses some of the most common support
services: web linking, account aggregation, electronic authentication, website
hosting, payments for e-commerce, and wireless banking activities
Web Linking
A large number of financial institutions maintain sites on the World Wide Web.
Some websites are strictly informational, while others also offer customers the
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ability to perform financial transactions, such as paying bills or transferring funds
between accounts.
Virtually every website contains "web links." A web link is a word, phrase, or
image on a webpage that contains coding that will transport the viewer to a
different part of the website or a completely different website by just clicking the
mouse. While web links are a convenient and accepted tool in website design, their
use can present certain risks. Generally, the primary risk posed by web linking is
that viewers can become confused about whose website they are viewing and who
is responsible for the information, products, and services available through that
website. There are a variety of risk management techniques institutions should
consider using to mitigate these risks. These risk management techniques are for
those institutions that develop and maintain their own websites, as well as
institutions that use third-party service providers for this function. The agencies
have issued guidance on web linking that provides details on risks and risk
management techniques financial institutions should consider
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 or by an ACH transfer from the consumer's account
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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.
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.
Today banking services can be delivered through following modes:-
1. Internet Banking, Web Banking, PC Banking and e-Banking
Popularity of PC and easy access to internet and World Wide Web (www) has
facilitated banks to use internet as a delivery channel and receiving instructions.
Today all private banks and most of the nationalized banks are offering web based
banking services. It is this form of banking that is generally referred as Internet
Banking.
2. Phone Banking / Mobile Banking (M - Banking)
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There has been a rapid advancement and acceptance of mobile services in India.
Penetration rate of mobiles and landlines have increased considerably. Banks have
lapped up these opportunities and are offering mobile banking. Account status can
be enquired just by a SMS (Short Message Service).