E Banking

A critical analysis of E - Banking of

INDUSIND BANK

Project Report (Submitted for the Degree of B. com. Honors in Accounts under the University of Calcutta)

A Project Report

E - Banking
Of

On

INDUSIND BANK

Submitted by Name of the Candidate : SUSHANT KR SETHI Registration No. : 053-1122-0313-10 Name of the College : JOGESH CHANDRA CHAUDHURI COLLEGE College Roll No. : 3/GR3A/12/74 Supervised by Name of the Supervisor : SAMIR K SINHA Name of the College : JOGESH CHANDRA CHAUDHURI COLLEGE January 2013

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Acknowledgement
I express my sincere thanks and deep sense of gratitude for the inspiring guidance and unfailing support rendered by my Teacher Prof. SAMEER K SINHA I am thankful to Prof.S.K.S who extended a helping hand during the course of the project, whenever needed with various data and resources who have directly or indirectly contributed to the success of this project. Finally, I am grateful to IndusInd

Bank, to do this project.

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Table of contents

Chapters 1. Introduction

Topic

1.1 Preface 1.2 Objectives of the study 1.3 Research Methodology 1.4 Limitations of the study
1.5

Literature of survey

2. 3. 4. 5.

CONCEPTUAL FREMWORK

Analysis and interpretation of data Conclusions and recommendations Bibliography

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INTRODUCTION

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PREFACE
E-banking or Internet banking means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions. In internet banking system, the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The network which connects the various locations and gives connectivity to the central office within the organization is called intranet. These networks are limited to organizations for which they are set up. SWIFT is a live example of intranet application.

MEANING OF E - BANKING

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Electronic banking (or net banking) refers to an application of the Internet that allows customers to dial into bank networks or their websites, using their own telephones and computers, and to get a host of banking services directly on their home or office PCs. Net banking offers you armchair convenience and access to your account information from anywhere in the world, at any time of the day or night. That means, as long as you have a computer, a modem, a phone line and an Internet account, you don't need to worry about bank holidays or taking time out to go to the bank, or standing in long queues for a simple transaction! You can access most of the bank's services from the comfort of your home / office !!

BENEFITS OF E - BANKING
For Banks:
1.

Price - In the long run a bank can save on money by not paying for tellers or for managing branches. Plus, it's cheaper to make transactions over the Internet. Base - The Internet allows banks to reach a whole new market- and a well off one too, because there are no geographic boundaries with the Internet. The Internet also provides a level playing field for small banks who want to add to their customer base. - Banks can become more efficient than they already are by providing Internet access for their customers. The Internet provides the bank with an almost paper less system. Service and Satisfaction- Banking on the Internet not only allows the customers to have a full range of services available to them, but it also allows them some services not offered at any of the branches. The person does not have to go to a branch where that service may or may not be offer. A person can take print of information, forms, and applications via the Internet and be able to search for information efficiently instead of waiting in line and asking a teller. A bank seems more state of the art to a customer if they offer Internet access. A person may not want to use Internet banking but having the service available gives a person the feeling that their bank is on the cutting image. Identifying profitable customers- Customers using E-banking services have higher balances than average branch teller customers. Investments are more than twice higher than the average.

2. Customer

3. Efficiency

4. Customer

5. Image-

6.

For Customers:
1.

Bill Pay: Bill Pay is a service offered through Internet banking that allows the customer to set up bill payments to just about anyone. Customer can select

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the person or company whom he wants to make a payment and Bill Pay will withdraw the money from his account and send the payee a paper check or an electronic payment
2.

Other Important Facilities: E- banking gives customer the control over nearly every aspect of managing his bank accounts. Besides the Customers can, Buy and Sell Securities, Check Stock Market Information, Check Currency Rates, Check Balances, See which checks are cleared, Transfer Money, View Transaction History and avoid going to an actual bank. Bigger share in customers tend to keep their finances at therefore have opportunity to cross sell facility of E-Banking banks can surely services, all at one place. customers wallet: It is a well known fact that one place. Banks holding customer accounts different products and services Through the offer their customers different products and

3.

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LIMITATIONS OF E - BANKING

1. 2. 3.

Safety situations around ATMs. Abuse of bank cards by fraudsters at ATMs. Danger of giving your card number when buying on-line.

The modern technology has influenced the financial sector to a large extent. It increases the competitive efficiency of the firms and provides sophistication to the end users. It makes everyone fittest to survive.

CONCERNS WITH E - BANKING

As with any new technology new problems are faced, here are some concerns associated with e-banking as well. These are as follows:-

1.

Customer support - banks will have to create a whole new customer relations department to help customers. Banks have to make sure that the customers receive assistance quickly if they need help. Any major problems or disastrous can destroy the banks reputation quickly an easily. By showing the customer that the Internet is reliable you are able to get the customer to trust online banking more and more.

2.

Laws - While Internet banking does not have national or state boundaries, the law does. Companies will have to make sure that they have software in place software market, creating a monopoly.

3. 4.

Security: customer always worries about their protection and security or accuracy. There are always questions whether or not something took place. Other challenges: lack of knowledge from customers end, sit changes by the banks,

etc.

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Conceptual Framework Internet Banking Vs. Traditional Method

In spite of so many facilities that Internet banking offers us, we still seem to trust our traditional method of banking and are reluctant to use online banking. But here are few cases where Internet banking will turn out to be a better option in terms of saving the money. 'Stop payment' done through Internet banking will not cost any extra fees but when done through the branch, the bank may charge you Rs 50 per cheque plus the service tax. Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. On the other hand, in a traditional method, you get quarterly statements from the bank and if you request for a statement at your required time, it may turn out to be an expensive affair. The branch may charge you Rs 25 per page, which includes only 30 transactions. Moreover, the bank branch would take eight days to deliver it at your doorstep. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you. As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost."

Cutting Operational Costs Cutting transaction costs results in higher profit margin for the banks. The enclosed chart clearly indicates the benefits of E-banking over traditional methods banking. Sl. 1 2 3 4 Banking Method used Manual, personal ATMs Internet / PC Telephone Banking Higher for Foreign Banks, as salaries and overheads are higher Rs. 20-30/- only Rs. 8/- only Rs. 15/- only Cost per Transaction for Bank Rs. 40 100/- depending on Bank

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As every Bank wants to be profitable E-banking is becoming necessity for survival. It provides enormous benefits to consumers in terms of the ease and cost of transactions.

Internet Banking An Overview

Internet Banking sites can be segregated into three categories from Level I, which offer just minimum functionalities such as access to ones deposit account data, to Level III sites that offer sophisticated services. To be successful, an Internet bank must offer:

High rates on deposits. 24 hour access. Free checking and bill payment facilities with rebates on ATM surcharges. Credit cards with low rates. Simple and easy online applications for all accounts including personal loans. Innovative products. High quality customer service.

E-banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. Today, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial service needs. No country today has a choice whether to implement E-banking or not given the global and competitive nature of the economy. The invasion of banking by technology has created an information age and commoditization of banking services. Banks have come to realize that survival in the new e-economy depends on delivering some or all of their banking services on the Internet while continuing to support their traditional infrastructure.

OBJECTIVES OF THE STUDY

To gain knowledge about the present scenario of e-Banking and its uses in the country.

To study the various services provided by IndusInd Bank to its customers through eBanking.

To know about diverse measures adopted by different banks to increase customer satisfaction through the use of e-Banking.

To be on familiar terms with the different uses of IT and computers in banks.

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LIMITATIONS OF THE STUDY

Although I had a wonderful experience in completing my project, yet I faced a couple of difficulties. Every task has its own limitations, and so did the study of analysis of e-Banking and its uses. They were as follows: Time was too short to do an analysis of the present scenario of e-banking, prevalent in the country. Limited product knowledge about other bank products as most of the study was done only by secondary data. There are numerous banks in India. It was not feasible to study the e-banking services provided by all of them. Biasness would also have also creep in during the interaction with the employees of banks regarding various services provided by them and the responses of the customers.

Literature of survey
IMRAN ANSARI, MANISH MALHOTRA, This study is an attempt to present the present status of Internet banking in India and the extent of Internet banking services offered by Internet banks. In addition, it seeks to examine the factors affecting the extent of Internet banking services. The data for this study are based on a survey of bank websites explored during July 2008. The sample consists of 82 banks operating in India at 31 March 2007. Multiple regression technique is employed to explore the determinants of the extent of Internet banking services. The results show that the private and foreign Internet banks have performed well in offering a wider range and more advanced services of Internet banking in comparison with public sector banks. Among the determinants affecting the extent of Internet banking services, size of the bank, experience of the bank in offering Internet banking , financing pattern and ownership of the bank are found to be significant. The primary limitation of the study is the scope and size of its sample as well as other variables (e.g. market, environmental, regulatory etc) which may have an effect on the decision of the banks to offer a wide range of Internet banking services. The purpose of the study is to help fill significant gaps in knowledge about the Internet banking landscape in India. The findings are expected to be of great use to the government, regulators, commercial banks, and other financial institutions, e.g. co-operative banks planning to offer Internet banking, bank customers and researchers. The bankers as well as society at large will come to know where the banks lag in terms of adoption of Internet banking and in providing different products and services. An understanding of the factor affecting the extent of Internet banking. Services is essential both for economists studying the determinants of growth and for the creators and producers of such technologies. Moreover, this paper contributes to the empirical literature on diffusion of financial innovations, particularly Internet banking

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CONCEPTUAL FRAMEWORK

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ABOUT INDUSIND BANK

Quality Policy:IndusInd Bank is committed to meet and strive to exceed customer requirements through timely, error free and courteous service. We shall continually improve the effectiveness of our work processes through training, customer feedback and review of systems

IndusInd Bank is the First Indian Commercial Bank to have its entire network under ISO certification for Quality.

INDUSIND BANK AT A GLANCE

First Scheduled Commercial Bank to be inaugurated in the post liberalised era, in 1994.

Majority stake owned by the global conglomerate Hinduja Group. Ashok Leyland Finance (Vehicle Finance division of Ashok Leyland) merger with IndusInd Bank in 2004 increased geographical penetration and customer base.

Offers a comprehensive range of financial products and services in areas of retail deposits, advances, corporate deposits, SME advances, third party products, utility payments.

Has a much diversified customer base comprising salaried class, house-wives, NRIs, entrepreneurs, PSUs, private sector organizations, etc.

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Coverage in India

IBL Presence:Incorporated in 1994 179 Branches 316 ATMs IBL serves the entire breadth of the Indian Economy along with its presence in 141 geographical locations in 27 states. By March 2008 IBL is aiming to increase its branch network to 200.

E - BANKING SERVICES PROVIDED BY INDUSIND BANK

IndusInd Bank believes in adding convenience to the banking experience of its customers. Its Alternate Delivery Channels give 24x7 accesses to its services, from anywhere in the world. The Bank provides various types of e-banking services to its customers, which aim to provide satisfaction and ease to them. These services are as under :-

1.

INDUSNET

IndusInd - Internet Banking service from IndusInd Bank offers banking services online with the same personal efforts that customers receive at the branch. The online requests are processed by a proactive team of Personal Bankers adhering to service quality standards. The Internet banking service provided by the bank adds more value to NRI's who can view their balances online and also effect funds transfer - just at the click of a mouse. Moreover,

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Internet banking has no time zones and is accessible round the clock without restricting it to any geographical boundary.

2.

VISA MONEY TRANSFER

VISA MONEY TRANSFER - [VISA CARD-to-CARD Transfer] No more waiting in queues in Bank branches, getting the Demand Drafts made, and writing cheque that takes days to clear, IndusInd Bank provides the only solution to make it simpler, convenient and faster by IndusInd Bank VISA Money Transfer. From IndusInd Bank account, customers can now transfer money to any of the 23 million VISA Cards anywhere in India through IndusInd - IndusInd Banks Net Banking service and any of IndusInd Bank ATM.

3. ATMs
The wide ATM network of IndusInd bank provides the following services to its customer base: Deposit Cash / Cheque- Special deposits slip-cum-envelopes are provided at the ATM centers. The customers just have to fill in the details of cash or cheque and insert it into the deposit slot. Withdraw Cash- One can withdraw up to Rs 15,000/- per day from his account using the ATM/Debit card in any of the IndusInd ATMs across the country subject to availability of balance in the account. One can also shop up to Rs 25000 per day using his/her debit card. Funds Transfer- Flexibility to allow on-line transfer of funds between the various accounts linked with the ATM/Debit card of the customer. Fast Cash- In spite of holding multiple accounts, the customers have the option of withdrawing cash through their primary account only.

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Visa Money Transfer- Visa Money Transfer is a revolutionary service which enables the customer of IndusInd Bank to transfer money from their debit card to any other visa debit /credit card anytime, anywhere in India.

5.

INDUS BILL PAY

Indus Bill pay is a simple, convenient and secure way of managing bills from anywhere, at anytime. The customers can pay their Telephone bills, Electricity bills, Mobile bills, Insurance Premium, Gas charges, Taxes etc. This service is absolutely FREE for customers.

6.

PHONE BANKING
The customers of IndusInd bank can now call on the toll free numbers 1800 22 00 61 (All MTNL & BSNL subscribers or 022-44066666 (Local call in Mumbai). IndusInd bank offers following facilities which the customers can avail with the help of phone banking service: Balance Enquiry for Savings. Reading out last 3 transactions. Status of cheque issued by customer. Stop payment of an issued cheque. Detailed statement by FAX. Internal funds transfer between 2 A/Cs. Request for Cheque book. Request debit card replacement. Statement request for statement of A/C by mail or fax.

7.

ONLINE REMITTANCE

Indus Fast Remit

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Indus-Fast Remit is a fast, simple, safe and secure way to send money to your family in India from the comfort of your home. It uses the Automated Clearing House (ACH) which is paperless and 100% online remittance platform to transfer funds from United States to India. By using Indus-Fast Remit you can directly debit your local US bank account and credit the beneficiarys account with IndusInd Bank or instruct IndusInd Bank to issue demand draft favoring beneficiary.

8.

E-MAIL STATEMENTS
IndusInd Bank customers can have their account statements information at their fingertips. They can choose to receive their Monthly/Quarterly Savings or Current Account Statement Online at their e-mail address/es in an all-new PDF format. Their online statements can be downloaded to print, save and archive for future reference. It is completely user friendly. This service comes to the IndusInd customers FREE of cost and is yet another measure in the constant endeavor of the Bank to enhance customer-convenience.

9.

MOBILE BANKING
Under this, information based services is offered to customers by way of SMS messages, for which they have to register. These could be event or frequency based alerts. Features: Daily balance update Transaction based Alerts on Debits & Credits into the account Standing Instructions Success messages PULL message service * by sending key words like TXN or BAL or with parameters to 5676757 Deal maturity information would be sent to the customers before 3 days of maturity Broadcasts.

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10.

FREEDOM 3-IN-1 ACCOUNT

IBL Freedom 3-in-1 a/c grants their customers complete independence from the hassles of conventional trading procedures by helping them to trade online. This means no more calling up brokers, writing cheque/delivery instructions or even waiting endlessly to get transactions done. Simply go online and get the deal done in seconds and reap the benefits of paper-free trading with complete transparency. IBL helps the customers to integrate their Bank and Demat account with their trading account ensuring that the funds/shares can be seamlessly moved from their linked Bank/Demat account to execute their transactions. The Bank a/c and the Demat a/c are automatically debited or credited. The customers can trade in all NSE/BSE scraps as many times as possible.

11.

ECS FACILITY
IndusInd bank provides two kind of Electronic Clearing System (ECS) facility to its customers which are as under:

ECS Credit for salary payments and other payments at fixed frequency. ECS Debit is as per mandate given by the customers to debit their account towards
EMI or Recurring Deposit installments.

E - BANKING SERVICES PROVIDED BY OTHER BANKS

Despite of various e-banking facilities provided by IndusInd bank, there are many services which the bank has not promoted as yet. As a suggestion measure, I may like to name and explain a few of it, which other banks have been providing from quiet a long time. I would like the Bank authorities to have a look at them and provide these services to its reputed

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customer base, and hence improve customer satisfaction and contentment. Some of these services are: -

1. TICKET BOOKING
This service is provided by ICICI Bank. With this service customers need not visit reservation centers for booking tickets any more. They can buy their train tickets online and pay using the Internet Banking Facility of the bank. For this ICICI Bank has tied up with Indian Railway Catering and Tourism Corporation Ltd (IRCTC).This facility is available to all internet banking customers of ICICI Bank. For the purpose of making payment the customers Bank Account will be immediately debited and payment confirmation number will be provided. Tickets are booked immediately and PNR number is provided online to the customer, at Partner's website. Further, No cash will be paid at the time of cancellation. The customers bank account will be credited with the ticket amount less cancellation charges as levied by IRCTC. ICICI Bank does not levy any cancellation charges.

2. ONE VIEW

One View is a revolutionary service from HDFC Bank that allows its customers to manage multiple accounts in different banks through one single online interface. If you are an HDFC Bank customer and have one or more accounts with Citibank, ICICI Bank, HSBC India, Standard Chartered Bank then One View is just right for you. For this service, the customers dont need to individually log on to internet banking of every account. They just have to log on to One View and they can manage up to FIVE accounts in

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different banks. They will have to remember only ONE password. And this service is provided absolutely FREE to the customers of HDFC Bank.

3. ONLINE TAX PAYMENT

This service is provided by ICICI Bank. It has tied up with online tax preparation service providers to help its customers to prepare and file their taxes online. The customers can choose their desired service offered by the service providers, pay on-line using www.icicibank.com and avail of huge discounts. Similarly, this service is also provided by many other banks including Axis Bank. Consequent to the authorization of the Bank by RBI and Govt. of India for conducting Govt. Business, the Bank is handling Collection of various Central/ State Taxes through its authorized Branches.

4. E-PAYMENTS
Axis bank provides this e-banking facility to its customers. The Bank has entered into tie-ups with various Govt. Departments for providing various G2B and G2C online payment facility to the citizens and businesses thus providing convenience to them. Few of the important online payment tie-ups entered into by Axis Bank with various Govt. Departments is as under:

DGFT repayments

IRCTC - Online Railway Reservation MCD - Municipal Tax or Fees repayments Sam park - Utility Bill repayments MCD - retendering Project Bangalore One Project - Utility Bill repayments

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ANALYSIS AND INTRPRETATION OF DATA

Banking Services Through Internet

There are basically, 3 E- Banking service Levels provided by banks. These are discussed as below:i. The Basic Level Service is the Banks web sites which disseminate information on different products and services offered to customers and members of public in general. It may receive and reply to customers queries through e-mail, ii. In the next level are Simple Transactional Web sites which allows customers to submit their instructions, applications for different services, queries in their account balances, etc. but do not permit any fund-based transactions on their accounts, iii. The third level of Internet banking service are offered by Fully Transactional Web sites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. The above forms of Internet banking service the customer or by new banks, who deliver banking service primarily through Internet or other electronic delivery channels as the value added services. Some of these banks are known as Virtual banks or Internet only banks and may not have physical presence in a country despite offering different banking services.

E Banking : The Indian Scenario

Internet Banking in India:

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Online banking is expected to explode in the next few years. We will be entering the age of non-physical exchange of cash aided by complete transparency leading to perfectly competitive electronic market place and inevitably to customer supremacy. Growth in online banking will be driven by the following reasons:

Increasing access to low cost electronic services. Emergence of open standards in the banking industry. Improved customer awareness.

Entry of global majors in the market.

Integration of banking services with e-commerce and emergence of e-cash. Convenient international transactions, as Internet eliminates geographic boundaries.

Shift from one-stop shopping to unbundled product purchases Product and Services Offered Banks in India are at different stages of the web-enabled banking cycle. Initially, a bank, which is not having a web site, allows its customer to communicate with it through an e-mail address communication, is limited to a small number of branches and offices which have access to this e-mail count. With gradual adoption of Information Technology, the bank puts up a web site that provides general information on deposits products, application forms for downloading and e-mail option for enquiries and feedback. Banks provide information on their websites about NRI and other services. Customers are required to fill in applications on the Net and can later receive loans or other products requested for at their local branches.

A few banks provide the customer to enquire into his Demat account (security/shares) holding details, transaction details and status of instructions given by him. These web sites still do not allow online transactions for their customers.

Some of the banks permit customers to interact with them and transact electronically with them. Such services include request for opening of accounts, requisition for cheque books, stop payment of cheque, viewing and printing statements of accounts, movement of funds between accounts within the same bank, querying on status or requests, instructions for opening of Letter of Credit and Bank Guarantees, etc.

These services are being initiated by banks like ICICI Bank Ltd., Citibank, Global Trust Bank Ltd., AXIS Bank Ltd., IndusInd Bank, Citibank, Bank of Madura Ltd., Federal Bank Ltd., etc.

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Some of the more aggressive players in this area such as ICICI Bank Ltd., HDFC Bank Ltd., AXIS Bank Ltd., IDBI Bank, HSBC Bank, IndusInd Bank, Global Trust Bank Ltd., and Bank of Punjab Ltd., offer the facility of receipt, review and payment of bills online.

HDFC Bank Ltd. has made e-shopping online and real time with the launch of its payment gateway. Banks providing internet banking services have been entering into agreements with their customers setting out the terms and conditions of the services. The terms and conditions include information on the access through user-ID and secret password, minimum balance and charges, authority to the bank for carrying out transactions performed through the service, liability of the user and the bank, disclosure of personal information for statistical analysis and credit scoring also, etc.

The Future Scenario Compared to banks abroad, India banks offering online services still have a long way to go. For online banking to reach a critical mass, there has to be sufficient number of users and the sufficient infrastructure in place. Various security options like line encryption, branch connection encryption, firewalls, digital certificates, automatic sign-offs, random pop-ups and disaster recovery sites are is in place or are being looked at, there is as yet no Certification Authority in India offering Public Key Infrastructure, which is absolutely necessary for online banking. The communication bandwidth available today in India is also not enough to meet the needs of high priority services like online banking and trading. Banks offering online facilities also need to calculate their downtime losses, because even a few minutes of downtime in a week could mean substantial losses. A contractual agreement is entered into by the customer with the bank for using the Internet banking services. Domestic customers for whom other access points such as ATMs, telebanking, personal contact, etc. are available are often hesitant to use the Internet banking services offered by Indian banks. Internet Banking, as an additional delivery channel, may, therefore, be attractive/ appealing as a value added service to domestic customers. Nonresident Indians, for whom, it is expensive and time consuming to access their bank accounts maintained in India find net banking very convenient and useful.

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Cyber crimes are difficult to be identified and controlled.

In order to promote Internet banking services, it is necessary that the proper legal infrastructure is in place. The Department of Telecommunications (Dot) is moving fast to make available additional bandwidth, with the result that internet access will become much faster in the future.

Reserve Bank of India has constituted a group to examine different issues relating to e-banking and recommend technology, security legal standards and operational standards keeping in view the international best practices.

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CONCLUSIONS & RECOMMENDATIONS

Conclusion

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Technology innovation and fierce competition among existing banks have enabled e-banking to reach its existing level. Banks have traditionally been in the forefront of harnessing technology to improve product and efficiency. Technology is altering the relationships between banks and its internal and external customers. The major driving force behind the rapid spread of e-banking is its acceptance as an extremely cost effective delivery channel. But on the flipside, it is associated with many risks. Banks need to have an effective disaster recovery plan along with comprehensive risk management tool, which is significant not only to the bank but also to the banking system as a whole. Internet has created plenty of opportunities for players in the banking sector. While the new entrants have the advantage of latest technology, the good-will of the established banks gives them a special opportunity to lead the online world. By merely putting existing service online wont help the banks in holding their customer close. Instead, banks must learn to capitalize their customers different online financial-services relationships. Coming home, India is on threshold of a major banking revolution with the invasion of net banking. Many nationalized, private and foreign sector banks have adopted and have even relied on e-banking to enhance and maintain their customer base. E-banking is playing a major role in increasing the productivity and profitability of the Indian banks and banks are taking initiatives in adopting new and diversified

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techniques and policies to provide better customer satisfaction ways with the help of E-banking.
From all of this, we have learnt that information technology has empowered customers and businesses with information needed to make better investment decisions. At the same time, technology is allowing banks to offer new products, operate more efficiently, raise productivity, expand geographically and compete globally. A more efficient, productive banking industry is providing services of greater quality and value. The rise of E-banking is redefining business relationships and the most successful banks will be those that can truly strengthen their relationship with their customers. With rapid advances in telecommunication systems and digital technology, E-banking has become a strategic weapon for banks to remain profitable. It has been transformed beyond what anyone could have foreseen 25 years ago. To conclude we may say that, 5 years ago, E-banking was a strategic advantage, nowadays ; it is a business reality, if not a necessity. The conclusions can be sum up as follows: Technological development has been nothing less than explosion. Banks have been harnessing such technological innovations on one hand and adapting themselves to such changes on the other hand. Processing, storage and transmission of information is very essence of banking and financial services. The electronic technology has bought revolutionary changes in these areas. The elimination of paper as medium for processing and storage of transactions / information has been a great event. Large volume of information can be processed, stored and retrieved very economically at terrific speed, which is not possible manually. The space required for managing enormous volume of information has been reduced dramatically. With the revolution in telecommunication technology, information can be made accessible from remote distance at lightning speed. The final output of information after manipulation and analysis can be printed by printer at high speed directly from computers. Thus, the computer now has the ability to retrieve data or update files instantaneously. Subsequently with the development in telecommunication, Local Area Network (LAN)/Wide Area Network (WAN) have been established.

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Recommendations
To prevent online banking from remaining an expensive additional channel that does little to retain footloose customers, banks must act quickly. The first and most obvious step they should take is to see to it that the basic problem fueling dissatisfaction has been addressed.

After repairing this basic deficiency, banks must ensure that their services is competitive.

Obviously, it should include checking, savings and brokerage services, which anchor customers to the institution. In addition, to meet the challenge of online brokerage and other new entrants, banks would need to add supermarkets selling products such as mortgage, mutual funds and insurance.

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www.google.com www.icici.com www.idbi.com www.hdfc.com www.wikipedia.com

Annexure IA Supervisors Certificate This is to certify that Mr./Ms a student of B.Com. Honors in Accounting & Finance / Marketing / Taxation / Computer Applications in business of --------------------------- (Name of the College) under the University of Calcutta has worked under my supervision and guidance for his / her Project Work and prepared a Project Report with the titled which he / she is submitting, is his/her genuine and original work to the best of my knowledge. Place: Date: Signature Name: Designation: Name of the College

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Annexure IB Students Declaration I hereby declare that the Project Work with the title (in block letters) submitted by me for the partial fulfillment of the degree of B.Com. Honors in Accounting & Finance / Marketing / Taxation / Computer Applications in Business under the University of Calcutta is my original work and has not been submitted earlier to any other University / Institution for the fulfillment of the requirement for any course of study. I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report from any earlier work done by others or by me. However, extracts of any literature which has been used for this report has been duly acknowledged providing details of such literature in the references. Signature Name: Address: Registration No. Place: Date:

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Supervisors Certificate
This is to certify that Mr.SUSHANT KR SETHI a student of B.com. Honors in accounting & finance /marketing / Taxation/computer Application in business of JOGESH CHANDRA CHAUDHURI COLLEGE. (Name of the college) under the university of Calcutta has worked under my supervision and guidance for his /her her project work and prepared with the title E-BANKING The project report, which he/she is submitting, is his/her genuine and original work to the best of my knowledge. Place. Signature: . Date: Name: Designation: Name of the college

Students Declaration
I hereby declare that the Project work with the title () Submitted by me for the Partial fulfillment of the degree of B.com. Honors in Accounting & finance/Marketing/Taxation/ computer Application in business under the University of Calcutta is my original work and has not been submitted earlier to any other University/institution for the fulfillment of the requirement for any course of study. I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report from any earlier work done by me. However, extracts of any literature in the references. Place Date: , signature name: Address Registration No. Roll No.

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