MASTER OF BUSINESS ADMINISTRATION

(FINANCE)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

AWARD OF BACHELOR OF BUSINESS ADMINISTRATION OF TILAK
MAHARASHTRA UNIVERSITY,

PUNE

SUBMITTED BY

KONAR KRISHNAN SHIVARAMA NAMBI

P.R.NO: 07408016119

OF

LN COLLEGE OF MANAGEMENT & TECHNOLOGY

GUIDED BY

PROF. MRS. VANDANA MAHESHWARI

TILAK MAHARASHTRA UNIVERSITY

GULTEKDI, PUNE 411037

1
 TILAK MAHARASHTRA UNIVERSITY, PUNE

(DEEMED UNDER SECTION 3 OF UGC ACT 1956 VIDE NOTIFICATION NO.F.9-

19/85-U3 DATED 24TH APRIL 1987 BY GOVERNMENT OF INDIA)

VIDYAPEETH BHAVAN, GULTEKDI, PUNE-411037

CERTIFICATE

This is to certify that the project titled E Banking with help of ICICI BANK is bonafide
work carried out by Mr. Konar Krishnan Shivarama Nambi a student of Master of
Business Administration Semester 4th Specialisation Finance PR.No. 07408016119 under
Tilak Maharashtra University, in the year 2010.

Head of the Department Examiner Examiner

Date Internal External

Place

University Seal

2
 ACKNOWLEDGMENT

The research on E BANKING has been given to me as part of the

field study in 2-Years Masters Degree in Financial Management.

I have tried my best to present this information as clearly as possible

using basic terms that I hope will be comprehended by the widest spectrum
of researchers, analysts and students for further studies.

The successful completion of any project requires guidance and help from
number of people.

This project report could not have been completed without the
guidance of PROF. MRS. VANDANA MAHESHWARI

In the end, I would also like to thank all faculty members, Employee
of the center and all those whose names are not mentioned above and who
have indirectly helped me in various ways in successfully carrying out this
project.

KONAR KRISHNAN SHIVARAMA NAMBI

3
4
 INDEX

SR. NO. TITLE PAGE

NUMBER
1) INTRODUCTION

2) HISTORY OF BANKING IN INDIA

3) CURRENT SCENARIO

4) WHAT IS ELECTRONIC BANKING

5) COMPARISION BETWEEN
TRADITIONAL AND ELECTRONIC
BANKING
6) HOW E-BANKING HELPS DIFFERENT
SECTORS
7) FUNCTION OF E BANKING
8) E-BANKING IN INDIA
9) THE EMERGENCE OF ELECTRONIC
BANKING PRODUCT

SR. NO. TITLE PAGE

NUMBER
5
10) ADVANTAGES OF E-BANKING
11) WHO OFFERS WHAT?
12) RBI GUIDELINES FOR E-BANKING

13) FUTURE OF E-BANKING

14) ORGANIZATION – ICICI
15) PRODUCT AND SERVICES

ABOUT ICICI

PRIVACY STATEMENT
16) CONCLUSION

17) BIBLIOGRAPHY

6
 E-B@NKING

INTRODUCTION

Competition and the constant changes in technology and lifestyles

have changed the face of banking. Nowadays, banks are seeking alternative
ways to provide and differentiate amongst their varied services. Customers,
both corporate as well as retail, are no longer willing to queue in banks, or
wait on the phone, for the most basic of services. They demand and expect

7
to be able to transact their financial dealings where and when they wish to.
With the number of computers increasing every year, the electronic delivery
of banking services is becoming the ideal way for banks to meet their
clients’ expectations.

Online banking or e-banking can be defined as online systems which

allow customers to plug into a host of banking services from a personal
computer by connecting with the bank’s computer over the telephone wires.
Technology continues to make online banking easier for the average
consumer. Banks are using a variety of names for online banking services,
such as PC banking, home banking, electronic banking or Internet banking.
Regardless of the given name, these systems certainly offer specific
advantages over the traditional banking methods.

The acceleration in technology has produced an extraordinary effect

upon our economy in general has had a particularly profound impact in
expanding the scope and utility of financial products over the last ten years.
Information technology has made possible the creation, valuation, and
exchange of complex financial products on a global basis and even that just
in recent years. Derivatives are obviously the most evident of the many
products that technology has inspired, but the substantial increase in our
calculation has permitted a variety of other products and, most beneficially,
new ways to unbundled risk. What is really quite extraordinary is that there
is no sign that this process of acceleration in financial technology is
approaching an end. We are moving at an exceptionally rapid pace, fueled
not only by the enhanced mathematical applications

8
Produced by our ever rising computing capabilities but also by our
expanding telecommunications capabilities and the associated substantial
broadening of our markets.

E- Banking can be defined as “delivery of bank’s services to a customer

at his office or home using Electronic Technology.” The quality, range and
price of these electronic services decide a bank’s competitive position in the
industry.

Technology in banking has been used in four major ways:

• To handle a greatly expanded customer base

• To reduce substantially the real; cost of handling payments

• To liberate the banks from the traditional constraints on time and

place

• To introduce new products and services.

HISTORY OF E-BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a

healthy economy. The banking system of India should not only be hassle
free but it should be able to meet new challenges posed by the technology
and any other external and internal factors.

9
 For the past three decades India's banking system has several
outstanding achievements to its credit. The most striking is its extensive
reach. It is no longer confined to only metropolitans or cosmopolitans in
India. In fact, Indian banking system has reached even to the remote corners
of the country. This is one of the main reason of India's growth process.The
government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters
for getting a draft or for withdrawing his own money. Today, he has a
choice. Gone are days when the most efficient bank transferred money from
one branch to other in two days. Now it is simple as instant messaging or
dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From
1786 till today, the journey of Indian Banking System can be segregated into
three distinct phases. They are as mentioned below:

• Early phase from 1786 to 1969 of Indian Banks

• Nationalization of Indian Banks and up to 1991 prior to Indian banking

sector Reforms.

• New phase of Indian Banking System with the advent of Indian Financial
& Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I,

Phase II and Phase III.

Phase I

10
 The General Bank of India was set up in the year 1786. Next came
Bank of Hindustan and Bengal Bank. The East India Company established
Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843)
as independent units and called it Presidency Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by

Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at
Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank
of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.
Reserve Bank of India came in 1935.

During those days public has lesser confidence in the banks. As an

aftermath deposit mobilisation was slow. Abreast of it the savings bank
facility provided by the Postal department was comparatively safer.
Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform

after independence. In 1955, it nationalised Imperial Bank of India with
extensive banking facilities on a large scale specially in rural and semi-urban
areas. It formed State Bank of india to act as the principal agent of RBI and
to handle banking transactions of the Union and State Governments all over
the country.

Seven banks forming subsidiary of State Bank of India was

nationalised in 1960 on 19th July, 1969, major process of nationalisation

11
was carried out. It was the effort of the then Prime Minister of India, Mrs.
Indira Gandhi. 14 major commercial banks in the country was nationalised.

Phase III

This phase has introduced many more products and facilities in the
banking sector in its reforms measure. In 1991, under the chairmanship of M
Narasimham, a committee was set up by his name which worked for the
liberalization of banking practices. The country is flooded with foreign
banks and their ATM stations. Efforts are being put to give a satisfactory
service to customers. Phone banking and net banking is introduced. The
entire system became more convenient and swift. Time is given more
importance than money.

The financial system of India has shown a great deal of resilience. It is

sheltered from any crisis triggered by any external macroeconomics shock as
other East Asian Countries suffered. This is all due to a flexible exchange
rate regime, the foreign reserves are high, the capital account is not yet fully
convertible, and banks and their customers have limited foreign exchange
exposure.

CURRENT SCENARIO

To keep pace with the changing environment worldwide, Indian banking

industry is fast adopting technology. It has embraced many new features like
internet banking, ATM’s, phone banking etc. with the help of the new
technology, banks are now able to offer products and services which were

12
difficult or impossible with traditional banking. But the bank in India still
have to go a long way before making themselves technology savvy.

The banking scenario in India is that of a highly developed one, even

though, Indian banking is still way down from achieving world standards in
size as well as products and services. As the economic growth continues at a
brisk pace, the demands on the banking sector to rise to the needs of the
economy, is also growing consistently. The growth in economic activities
has invigorated wholesale as well as retail banking and e-banking in the
country. Higher income levels among the households and a changing
lifestyle that has accepted spending on white goods have accelerated credit
off take and increased the activities in the e banking sector. This is apart
from the increase in the activities of the wholesale/corporate banking sector
due to the acceleration in industrial production and other factors on the
production side. The overall demand for banking products and services has
led to the introduction of newer products and a more customer friendly
approach through the introduction of e banking.

This sustained demand has also led to increasing pressure on the banks
to be more competitive to retain the customers. The technological drive, that
has become imperative for the banks to deliver the products and services,
that are part of new age banking, needs substantial investments. In this
context, the smaller banks find it difficult to fund the projects aimed at
improving the service delivery/distribution mechanisms. This brings in the
issue of mergers and consolidations in the banking industry.

13
 In the quest for size and international recognition, Indian banks have
started entering the big league. But still, India has only 22 banks that figure
in the Global top 1000 and only 5 banks in the top 500.

Currently, India has 96 scheduled commercial banks (SCBs) – 27 public

sector banks (that is with the Government of India holding a stake), 31
private banks (these do not have government stake; they may be publicly
listed and traded on stock exchanges) and 38 foreign banks. They have a
combined network of over 53,000 branches and 17,000 ATMs. According to
a report by ICRA Limited, a rating agency, the public sector banks hold over
75 percent of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively.

The major bank groups (as defined by RBI) functioning during the
reference period of the report are State Bank of India and its seven associate
banks, 19 nationalized banks and the IDBI Ltd., 22 Old Private Sector
Banks, 8 New Private Sector Banks and 40 Foreign Banks.

WHAT IS ELECTRONIC BANKING?

Electronic banking is the wave of the future. It provides enormous

benefits to consumers in terms of the ease and cost of transactions. But it

14
also poses new challenges for country authorities in regulating and
supervising the financial system and in designing and implementing
macroeconomic policy.

E- Commerce

Conducting business through

electronic network

E- Finance
E –Money
Providing financial
Stored value or prepaid
services through
payment mechanism.
electronic channels

Other financial
E-Banking
services or products
Providing banking
Insurance, online
products and services
brokering etc.

Internet Banking

Telephone
Banking

Other electronic
delivery channels

Electronic banking has been around for some time in the form of
automatic teller machines and telephone transactions. More recently, it has
been transformed by the Internet, a new delivery channel for banking
services that benefits both customers and banks. Access is fast, convenient,

15
and available around the clock, whatever the customer's location plus, banks
can provide services more efficiently and at substantially lower costs.

Electronic banking also makes it easier for customers to compare

banks' services and products, can increase competition among banks, and
allows banks to penetrate new markets and thus expand their geographical
reach. Some even see electronic banking as an opportunity for countries with
underdeveloped financial systems to leapfrog developmental stages.
Customers in such countries can access services more easily from banks
abroad and through wireless communication systems, which are developing
more rapidly than traditional “wired” communication network.

COMPARISON

16
 TRADITIONAL BANKING ELECTRONIC BANKING

Client prepares a Client logs on to

Cheque Bank’s web site

Keys in the user

He goes to bank
Name & password

Deposits the Gives instructions

Cheque in bank Online

Money is
Next day the
transferred
Money is transferred
Same day

HOW E-BANKING HELPS

To Corporate
17
 • COMPETITION : Banks feel the need to offer e-banking services today
just to keep up with the competitors and to be able to retain their existing
customers.

• NEW MARKETS : The Internet is not only a low cost approach to

determine new distribution channels but also to establish a presence in new
and upcoming markets.

• CUSTOMER SERVICE : E-banking offers banks an opportunity to

improve on their customer service by collecting and managing information
pertaining to their customers and their individualistic preferences.

• REVENUE POTENTIAL : E-banking also provides an opportunity to

build on their relationships with their existing customers. For Example,
bank Web portals could offer purchasing services for business travel or
insurance to generate more revenue.

• REDUCE COSTS : E-banking is an opportunity for banks to reduce their

overhead costs as the need for physical branches is drastically cut down.
The running cost of an ordinary bank account for 50-60 per cent of their
revenues, whereas the running cost of Internet banking are a mere 15-20
per cent of revenues. For example, in India, Net banking is estimated to
cost just INR 2 per transaction compared to the INR 43 incurred while
banking at the branch.

To Customer

• Anywhere banking- no matter wherever the customer is in the world,

on- line banking is just a web- site away. Balance enquiry, request for
services, issuing instructions etc. from anywhere in the world are
18
 possible. Consumers can use their computers and a telephone modem to
dial in from home or any site where they have access to a computer.

Anytime banking- managing funds in real time and most importantly, 24

hours a day, 7 days a week.

Convenience acts as a tremendous psychological benefit all the time.

Cash or card free banking through PC banking. E- Banking expands the

domain of access to banking services.

Brings down cost of banking to the customer over a period of time.

Cash withdrawal from any branch/ATM.

On line purchase of goods and services including on line payment for the
same.

Transactions are executed and confirmed almost instantaneously.

Also, the range of transactions available is fairly broad. Consumers can do

everything from simply checking on an account balance to applying for a
mortgage.

To Bank

• Innovative, secure, addresses competition and presents the bank as

technology driven in the banking sector market.

• Reduces customer visits to the branch and thereby human

intervention. This impact tells upon establishment costs of the bank.
19
 • Inter-branch reconciliation is immediate thereby reducing chances of
fraud and misappropriation. On- line banking – an effective medium of
promotion of various schemes of the bank, a marketing tool indeed.

• E-Banking site can act as a revenue earner through promotion activity by

consumer corporate. Integrated customer data paves wave for
individualized and customized services.

• E-Banking provides competitive advantage to the bank.

• E-Banking provides unlimited network to the bank and is not limited to

the number of branches.

• By connecting all the branches through WAN (wide area network),

anywhere banking facility can be provided.

• Helps in establishing better customer relationship and retaining and

attracting customer.

• ATM can be better monitored and planned by establishing a centralized

data warehousing and using latest data mining tools.

• Load of branches can be considerably reduced by establishing centralized

data base and by taking over some of the accounting functions.

To Merchants, Traders etc.

• Increase in business because of increased purchasing power of the

credit card holders and ease with which purchasing can be done.

• Less need for merchants or traders to provide credit facility to their

customers.
20
 • Making e-commerce a reality and globalizing the trade.

• Development of global and loyal clientele base. Assured immediate

payment / settlement.

• Avoid all the cost and risk problems involved in handling cash.

• Providing services of international standard at low transaction cost.

To Government and Nation

• Globalization of trade and e-commerce.

• Providing global market to the national products and services.

• Establishment of e-commerce in India will promote exports and increase

inflow of foreign exchange.

• Promotion of e-commerce and e-banking will eliminate the risk of carrying

heavy cash.

• E-banking and e-commerce will improve transparency in transaction.

21
 FUNCTIONS OF E-BANKING

At present, the personal e-bank system provides the following services: -

1. Inquiry about the information of account : -

The client inquires about the details of his own account

information such as the card’s / account’s balance and the detailed
historical records of the account and downloads the report list.

2. Card accounts’ transfer : -

The client can achieve the fund to another person’s Credit Card in
the same city.

3. Bank-securities accounts transfer : -

The client can achieve the fund transfer between his own bank
savings accounts of his own Credit Card account and his own capital
account in the securities company. Moreover, the client can inquire about
the present balance at real time.

4. The transaction of foreign exchange : -

The client can trade the foreign exchange, cancel orders and
inquire about the information of the transaction of foreign exchange
according to the exchange rate given by our bank on net.
5. Client service : -

22
 The client can modify the login password, information of the Credit
Card and the client information in e-bank on net.

6. Account management : -

The client can modify his own limits of right and state of the
registered account in the personal e-bank, such as modifying his own
login password, freezing or deleting some cards and so on.

7. Reporting the loss : -

The client can report the loss in the local area (not nationwide) when
the client’s Credit Card or passbook is missing or stolen.

E-BANKING IN

INDIA

23
 Internet banking, both as a medium of delivery of banking services
and as a strategic tool for business development, has gained wide acceptance
internationally and is fast catching up in India with more and more banks
entering the fray. India can be said to be on the threshold of a major banking
revolution with net banking having already been unveiled The facility of
accessing their accounts from anywhere in the world by using a home
computer with Internet connection, is particularly fascinating to Non-
Resident Indians and High Net worth Individuals having multiple bank
accounts.

Costs of banking service through the Internet form a fraction of costs

through conventional methods. Rough estimates assume teller cost at Re.1
per transaction, ATM transaction cost at 45 paisa, phone banking at 35
paisa, debit cards at 20 paisa and Internet banking at 10 paisa per
transaction. The cost-conscious banks in the country have therefore actively
considered use of the Internet as a channel for providing services. Fully
computerized banks, with better management of their customer base are in a
stronger position to cross-sell their products through this channel.

In India, the Internet banking market is in the earliest stages of development.

Only 51 banks are currently offering any kind of Internet banking services.
Out of which 55% are “Entry Level” sites, offering little more than company
information and basic marketing materials. Only 8% offer “advanced”
transactional services, such as online fund transfer, transactions and cash
management services.

24
In general, the foreign and private banks are far ahead of the Public Sector or
Cooperative Banks in terms of the number of sites and their level of
development.

Classification of current Internet banking services.

• ENTRY LEVEL : Offers general information on the institution.

Essentially a glorified brochure with no interactive capabilities. Example:
General product information, company news, press releases.

• BASIC LEVEL : Increased functionality, offering all ‘Entry Level’

items plus basic interactive tools and some origination capabilities.
Examples: Download on account applications and email to customer
service.

• INTERMEDIATE LEVEL : Allow account access, tracking and

viewing. Have the ‘skeletal’ features of a complete Internet bank.
Examples: Check balances on-line, submit account applications
electronically and reporting.

• ADVANCED LEVEL : ‘Complete’ Internet bank offering full

functionality and security. Customers can securely move money to and
from accounts online. Examples: Inter-account transfers, trading and
electronic exchanges.

Stage Services Provided Banks

25
 Information Websites provide Most of the banks in India.
Websites information on the financial
services offered in the
bank’s branches.

Electronic and Customers can do basic Some of private sector banks

Internet Banking banking transactions like and foreign banks.
opening an account,
payment of utility bills,
checking their balance and
transactions.

E-commerce and e- Banks become electronic A few new private sector

banking market place where banks and foreign banks.
customer can buy and sell
through banks payment
gateway.

ENTRY OF PRIVATE SECTOR BANKS:

The first step was taken in 1992-93 when the government issued guidelines
for entry of private sector banks. Immediately financial institutions set up
private sector banks major among them being:

• ICICI Bank Ltd.

26
• HDFC Bank Ltd.
• UTI Bank Ltd.
• IndusInd Bank Ltd.

Backed by the muscle power of the parent financial institution, these

banks proved to be a major threat to existing banks. Competition also
resulted in:

Elimination of ‘ niche areas’ as more and more private sector and foreign
banks stepped up activity in the retail banking area which till then was
considered to be the bread and butter for smaller co-operative banks.

Use of information technology in a major way to provide easy and

convenient banking services to customers. The state of art technology
introduced by some of the private sector banks and its impact on the
customer has compelled the public sector and smaller – co-operative banks
to also automate operations in a major way. The reserve bank of India too
has now published guidelines for technology up gradation in banks.

THE EMERGENCE OF ELECTRONIC BANKING PRODUCT

Intense competition has forced banks to rethink the way they operated
their business. They have to reinvent and improve their products and
services to make them more beneficial and cost effective. Technology in the

27
form of electronic banking has made it possible to find alternate banking
practices at lower costs.

More and more people using electronic banking products and services
and because a larger section of banks future customer base will be made up
of computer literate customers, the banks must be able to offer these
customer products and services that allow them to do their banking by
electronic means. If they fail to do this they will, simply, not survive.

Automated Teller Machine (ATM) :

The ATM was one of the earliest electronic banking products, being
introduced in the mid 1970’s. It provided customers with the ability to
withdraw or deposit funds, check account balances, transfer funds and check
statement information. As is the case with any new technology, it took some
time before customers became familiar with the ATM and came to accept it
as an alternative way of doing their banking.

Electronic Funds Transfer (EFT) :

Electronic funds transfer (EFT) is another electronic banking product

that facilitates transfer of funds from any branch of a bank to any other

28
branch of any bank in the shortest time.

Telephone Banking

Telephone banking is only a new electronic banking product.

However, it is fast becoming one of the most popular products. Customer
can perform a number of transactions from the convenience of their own
home or office, in fact from anywhere they have access to phone. Customer
can check balances and statements information, transfer funds from one
account to another, pay certain bills and other statements or cheque books.

Personal Computer Banking :

29
 Personal computer banking or PC banking is also a fast growing area
in electronic banking. PC banking lets customers’ access information on
their accounts through a dial up connection with their bank. Customers can
perform basically all the transactions that are available with telephone
banking. They also have the ability, in some cases, to download information
and process it in their own financial management software.

Home Banking :

Under home banking the customer is served at his residence and there
is no need for the customer to visit the bank’s premises for a number of
routine transactions. If the customer needs some information the same can
be got by contacting the bank over the phone as described in the telebanking.

If the customer wants to put through transaction and wishes to see his
account or to get a statement of his account, he may have to use a PC.

The home banking service can be broadly classified under two groups, one
without using the information technology and another using information
technology.

When customer contacts the bank o the phone no specific technology

is involved and the service of telebanking are provided to him.

30
Internet Banking

Internet banking is an improvement over PC banking. This is

because internet banking is also done over a highly accessible public
network. The bank can set up their system, much the same as PC banking. It
is accessible to anyone using the internet, not just the bank’s customers.

One of the main reasons electronic banking products were introduced was
that the banks were losing their market share. Electronic banking has
assisted the banks in retaining their customers and their market share by
reducing costs in many areas, especially those associated with providing
service to the customer and to enhance their image. Most banks are trying to
get customers to use electronic banking because it saves them money. If a
customer comes into a branch to perform a routine task such as checking a
balance or withdrawing funds, it passes on a cost to the bank. The cost of
providing these routine transactions in a traditional branch environment is
far greater than providing a same service by electronic means.

Another benefit of electronic banking is that the ability to obtain

accurate information quickly and easily has increased dramatically. It is
beneficial to the banks as it increases their productivity and it also improves
the delivery of quality service to the customer. The availability of the
31
services can be extended to 24 hours a day. Customers can make informed
decisions due to the accuracy of the information available to him.

Plastic Cards as Media for Payment:

There are four types of plastic cards being used ad media for making
payments. These are:

1. Credit Card

2. Debit Card

3. Smart Card

4. ATM Card

1. Credit Cards : -

The credit card enables the cardholders to:

 Purchase any item like clothes, jewellery, railway/air tickets, etc.

 Pay bills for dining in a restaurant or boarding and lodging in a hotel

 Avail of any service like car rental, etc.

2. Debit Card: -

32
A debit card is issued on payment of a specified amount by the issuing
company like a telephone company to a customer on cash payment or on
debiting his account by a bank. Thus it is like an electronic purse, which can
be read and debited by the required amount.

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

3. Smart Cards : -

Smart Cards have a built-in

microcomputer chip, which can be used for storing and processing
information. For example, a person can have a smart card from a bank with
the specified amount stored electronically on it. As he goes on making
transactions with the help of the card, the balance keeps on reducing
electronically. When the specified amount is utilized by the customer, he can

33
approach the bank to get his card validated for a further specified amount.
Such cards are used for paying small amounts like telephone calls, petrol
bills, etc.

In India, a smart card, suiting Indian banking environment, is being

developed and tested at IIT, Mumbai, in collaboration with the RBI and
ICICI. The card is being used as an experimental tool for promoting cashless
society in and around the IIT Campus. The latest smart card being developed
will combine all the features of electronic purses, credit cards and ATM
cards.

4. ATM Cards : -

The card contains a PIN (Personal Identification Number) which is

selected by the customer or conveyed to the customer and enables him to
withdraw cash up to the transaction limit for the day. He can also deposit
cash or cheque.

34
 ADVANTAGES OF E-BANKING:

1. Account Information: Real time balance information and summary of

day’s transaction.

2. Fund Transfer: Manage your Supply-Chain network, effectively by

using our online hand transfer mechanism. We can effect fund transfer
on a real time basis across the bank locations.

3. Request: Make a banking request online.

4. Account information: The complete database that the banks has about
our company is available to us at our terminal. It provides us:

 Current balance in our account on real-time basis.

35
  Day’s transactions in the account.

 Details of cash credit limit, drawing power, amount utilized,

etc.

5. Downloading of account statements as an excel file or text file. The

statements can be integrated with your ERP systems for auto-
reconciliation.

6. Fund Transfers: Manage our Supply-Chain network, effectively by

using our online fund transfer mechanism. We can effect fund transfer
on a real time basis across the bank locations. The product facilities.

(a) One-to-one fund transfer between two linked account.

(b) Bulk fund transfers; In bulk fund transfers, we upload a

flat file containing payment / collection information. Our
systems take care of processing the entire file and once the file is
processed file to our ERP for auto reconciliation.

7. The real life situation of user-wise limits and multilevel signatories

can be mapped in the net-based fund transfer module too. We can
specify user-wise cap for fund transfer and the number of
approvals needed for each fund transfer. The fund transfer will not
take place unless the required number of signatories has approved
it.

8. With a power of Attorney from our dealers, we can link the

dealer’s accounts to our account in order to have an online fund
transfer, saving us time and money involved with cheques
collections systems. Alternatively, the dealer can credit our
36
 account through this channel. Similarly, we could also effect
vendor and other payments online.

9. Customers can also submit the following requests online:

Registration for account statements by e-mail daily / weekly /
fortnightly / monthly basis/ Demand Draft / Pay-order/ Opening of
fixed deposit account/

Opening of Letter of credit

10. The company does not have to spend anything extra to avail such
facilities. All it requires is an Internet connectivity. The product
enables the company to pro-actively manage its cash flows, ease
reconciliation efforts as all the MIS is available at the click of the
mouse.

11. Bill Payment through Electronic Banking: Internet has thus ushered
the concept of anytime and anywhere banking. To the individual the
onerous task of visiting several places to settle his service bills like
telephone, water, electricity, etc., can be overcome through the
electronic Bill Pay service provided by the bank. He can pay his
regular monthly bills (telephone, electricity, mobile phone, insurance,
etc.) right from his desktop. No more missed deadlines, no more loss
of interest. He can schedule his bills in advance, and thus avoid
missing the bill deadlines as well as earn extra interest on his money.

12.The Electronic Shopping Mall: The customer can also make his
shopping payment through the Bank’s secure website-so that he can
shop online without any security worries, as the bank can provide

37
 online real time shopping mail services through partner shopping
sites.

13. Effecting Personal Investments through Electronic Banking: The

bank’s website can also allow the customer to invest in shares, mutual
funds and other financial products.

DISADVANTAGES
OF E-BANKING:

 Safety situations around ATMs.

 Abuse of bank cards by fraudsters at ATMs.

 Danger of giving your card number when buying on-line.

 Start up time: sometimes in order to register for the service you

have to sign a wavier or it may take time to get a password

 Learning: it may take a while to learn how to navigate around

online system.

38
  Site changes: sometimes the bank will make changes to the site,
this may cause confusion or delays.

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.

WHO OFFERS WHAT?

The Indian scenario

Citibank

• See up-to-date account information

• View transaction details

• View account statement for up to 12 months

• Order demand drafts to couriered free to over 200 locations

• Order a cheque book

• Stop payments
39
 • Request a deposit slip

• Pay utility bills

• Email queries

ICICI Bank
 Account information - Summary of accounts and transactions

• Bill payment

• Funds Transfer including third-party transfers

• Request for cheque book, stop payment, account opening,

• Reporting loss of ATM card

• Online e-shopping payments

• Communication with Account Manager

• Personalized viewing of content updates – personal finance, select

articles on e-commerce, information technology, lifestyles, travel and
news.

HDFC Bank
• Real-time account information including transactions

• Transfer money between accounts

• Bill payment facility

• Third party funds transfer – within HDFC bank

• Request for Demand Draft/Bankers Cheque

• Stop payment requests

• Opening fixed-deposit accounts

40
 • Sending messages to the bank via e-mail

Punjab national Bank

• Account information and transaction details

• Depository accounts

• Fund transfer between branches

• Requests for Cheque Books, Demand Drafts\ Bankers Cheque, Term

Deposit Account Opening, Renewal of Term Deposits and Change of
Address

• Customize content as per the viewing preferences

• Bill payment facility

RBI GUIDELINES FOR E-BANKING:

The speed and flexibility that online banking offers has resulted in a
significant spurt in internet banking in India. Pursuant to the
recommendations of the working group in internet banking, the RBI notified
guidelines applicable to e-banking within the country. These guidelines
expand the existing regulatory framework to include e-banking and cover all
entities that offer online banking products to residents in India.
41
 This changing financial landscape brings with it new challenges for
bank management and regulatory and supervisory authorities. The major
ones stem from increased cross-border transactions resulting from drastically
lower transaction costs and the greater ease of banking activities, and from
the reliance on technology to provide banking services with the necessary
security.

The Reserve Bank of India (RBI) has created a comprehensive

document which lays down number of security-related guidelines and
strategies for banks to follow in order to offer Internet banking. The
guidelines broadly talk about the types of risks associated with Internet
banking, the technology and security standards, legal issues involved, and
regulatory and supervisory concerns. Any bank that wants to offer Internet
banking must follow these guidelines and adhere to them as a legal
necessity.

Background
The document broadly categorizes levels of E- banking services into three
types:

• The basic level service in which the banks' websites disseminate

information on different products and services to customers. It may
receive and reply to customers' queries through e-mail.
• Simple transactional websites which allow customers to submit their
instructions, applications for different services, and queries on their
account balances. They do not permit any fund-based transactions on
their accounts.

42
 • The third level of Internet banking services offered by fully-
transactional websites which allow 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.

Security the Key Concern-

It's evident from the document and from a general study of the business case
of E-banking, that security is perhaps the biggest concern. Connectivity
issues to remote locations are also very important, but the need to be secure
is far more pressing.

The document says that security issues include questions of adopting

internationally accepted state-of-the-art minimum technology standards for
access control, encryption/decryption (minimum key length), firewalls,
verification of digital signature, and Public Key Infrastructure (PKI).

The concerns and guidelines about security are discussed in detail in the
report. The key components of security concerns are

• Authentication: The assurance of identity of the person in a deal

• Authorization: A party doing a transaction is authorized to do so
• Privacy: The confidentiality of data and information relating to any
deal
• Data integrity: Assurance that the data has not been altered

Thus to avoid the above mentioned security risk RBI laid down some
guidelines. Some of which are:

43
 Only banks licensed under Banking Regulation Act having a physical
presence are permitted to offer e-banking services.

 E-banking products should include Indian currency products only.

 With regard to cross-border transactions wherein an Indian bank transacts

with a foreign resident and vice versa, existing restrictions would continue
to apply, except where permitted by FEMA(foreign exchange management
association) .

 Prior approval of RBI is required to offer internet banking.

 Banks that already offer such services would require post facto approval.

 The RBI guidelines are very exhaustive and extremely comprehensive

Experts at Global E-Secure Limited, a security solutions company say that
none of the Indian banks which offer Internet banking facilities have an IT
security policy as stipulated by the RBI. While banks have been asked to
file monthly reports to show compliance to the guidelines, most of them
have sought time to satisfy the security policy criterion.

The RBI is insisting on a written document, signed by the Board of Directors

to make the banks aware that IT security is not just an IT concern, but
something that could affect overall business as well.

If these areas are not addressed, the bank may suffer operational risk,
reputational risk, legal risk, money laundering risk, and strategic risk.

44
 FUTURE OF E-BANKING:

The future of e-banking will be closely linked to spread of Internet.

Technology will drive penetration and not a government ordinance. A
simple telephone line will bring access and then rapid developments will
take place. Kiosks and ATMs assisted by a single customer centric banker
will usher in a banking revolution. Technology can enable offering of a
complete range of products on multiple platforms and provide a paradigm
shift in delivery of banking service to the individual.

With the rapid advances in the telecommunication systems and digital

technology, it is difficult to predict how E- Banking will improve and
expand over the coming years. For example, Internet Banking via mobile
phones using Wireless Application Protocol (WAP) or banking services
through the TV screen via the new interactive TV channels may become
45
established. It is likely that the number of customers wanting to utilize
online banking will increase which could lead to high street banks offering
personalized services and better online customer care. To combat computer
crime and increase security levels, banks may consider new security
measures such as iris, voice and fingerprint recognition, smart cards and
electronic signatures.

However, with the number of computers increasing every year, the

electronic delivery of services is rapidly becoming popular in the banking
sector. The Indian experience of E-banking is gradually merging with its
international counterparts. While the private sector and the multi-national
banks have been first and expeditiously adopting Internet technology in
client servicing, there is a gradual trend towards the major public sectors and
numerous co-operative units to move in the same direction. A mix of policy
support and security assurance should propel E-banking adoption further in
India.

46
 ORGANIZATION

OVERVIEW

ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01
billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58
billion for the year ended March 31, 2009. The Bank has a network of 1,451
branches and about 4,721 ATMs in India and presence in 18 countries.

ICICI Prudential Life Insurance Company is a 74:26 joint venture with

47
Prudential plc (UK). It is the largest private sector life insurance company
offering a comprehensive suite of life, health and pensions products. It is
also the pioneer in launching innovative health care products like Diabetes
Care Active and health Saver.The company operates on a multi-channel
platform and has a distribution strength of over 2,76,000 financial advisors
operating from more than 2000 branches spread across 1800 locations across
the country. In addition to the agency force, it also has tie-ups with various
banks, corporate agents and brokers. In fiscal 2009, ICICI Prudential
attained a market share of 10.9% based on retail weighted premium and
garnered a total premium of Rs 153.56 billion registering a growth of 13%
and held assets of Rs. 327.88 billion as on March 31, 2009.

ICICI Lombard General Insurance Company, a joint venture with the

Canada based Fairfax Financial Holdings, is the largest private sector
general insurance company. It has a comprehensive product portfolio
catering to all corporate and retail insurance needs and is present in over 300
locations across the country. ICICI Lombard General Insurance has achieved
a market share of 27.2% among private sector general insurance companies
and an overall market share of 11.2% during fiscal 2009.

ICICI Securities Ltd is the largest equity house in the country providing end-
to-end solutions (including web-based services) through the largest non-
banking distribution channel so as to fulfill all the diverse needs of retail and
corporate customers.

48
ICICI Securities Primary Dealership Limited is the largest Primary Dealer
in Government Securities. It is an acknowledged leader in the Indian fixed
income and money markets, with a strong franchise across the spectrum of
interest rate products and services - institutional sales and trading, resource
mobilisation, portfolio management services and research. One of the first
entities to be granted Primary Dealership license by RBI, I-Sec PD has made
pioneering contributions since inception to debt market development in
India. I-Sec PD is also credited with pioneering debt market research in
India. I-Sec PD has been recognised as the 'Best Domestic Bond House in
India' by Asiamoney every year from 2002 to 2007 and selected as 'Best
Bond House' by Financeasia.com for the years - 2001, 2004 to 2007 and
2009."

ICICI Prudential Asset Management is the third largest mutual fund with
average asset under management of Rs. 514.33 billion and a market share of
10.43% as on March 31, 2009. The Company manages a comprehensive
range of mutual fund schemes and portfolio management services to meet
the varying investment needs of its investors through162 branches and 185
CAMS official point of transaction acceptance spread across the country.

ICICI Venture is one of the largest and most successful private equity firms
in India with funds under management in excess of USD 2 billion. ICICI
Venture, over the years has built an enviable portfolio of companies across
sectors including Life Sciences, Information Technology, Media,
Manufacturing, Retail, Financial Services, and Real Estate thereby building
sustainable value. It has several “firsts” to its credit in the Indian Private
49
Equity industry. Amongst them are India’s first leveraged buyout
(Infomedia), the first real estate investment (Cyber Gateway), the first
mezzanine financing for a acquisition (Arch Pharmalabs), the first ‘royalty-
based’ structured deal in Pharma Research & Development (Dr Reddy’s
Laboratories - JV) and the first fund level secondary transaction (Coller
Capital).

ICICI Group has always been at the forefront of developing innovative

financial products, which caters to various needs of people from all walks of
life. Over the years, it has launched several financial products that offer
financial support, security and more to not just individuals, but to big and
small organisations too.

Banking

Personal Banking

o Savings & Deposits

o Loans

o Cards

o Wealth Management

50
Global Private Clients

Corporate Banking

o Transaction Banking

o Treasury Banking

o Investment Banking

o Capital Markets

o Custodial Services

o Rural & Agri Banking

o Structured Finance

o Technology Finance

Business Banking

o Current Account

o Business Loans
51
 o Forex

o Trade

o Cash Management Services

• NRI Banking

o Money Transfer

o Bank Accounts

o Investment

o Property Solutions

o Insurance

o Loans

52
Insurance & Investment.

Life Insurance

o Life Insurance

o Retirement Solutions

o Health Solutions

o Education Solutions

General Insurance

o Health Insurance

o Overseas Travel Insurance

o Student Medical Insurance

53
 o Motor Insurance

o Home Insurance

• Securities

o Corporate Finance

o Primary Dealership

o Institutional Equities

o Retail Equities

Mutual Fund

o Our Funds

o Performance Analyser

o Systematic Investing

o Compare Schemes

54
ICICI Bank Awards

• ICICI Bank wins the Asian Banker Award for Best Banking Security
System

• ICICI Bank is the first and the only Indian brand to be ranked as the
45th most valuable global brand by BrandZ Top 100 Global Brands
Report.

• ICICI Bank has been ranked 1st in the term money category, from a
list of 38 leading Banks by the German magazine, Euro. Since
commencement of business two years ago in the German market, this
is the 5th certification/award including 2 certifications from Stiftung
warrenttest (for Savings and Term Deposits) and three "Best Bank"
rankings by Euro magazine.

• Forbes' 2000 most powerful listed companies' survey ranked ICICI

Bank 4th among the Indian companies and 282nd globally.

• ICICI Bank was awarded The Asian Banker Achievement Award

2009 for Cash Management in India.

55
 • The Economic Times-Corporate Dossier Annual Survey of India Inc's
Most Powerful CEOs featured Ms Chanda Kochhar, MD and CEO, as
the most powerful women CEO in India. She was ranked 13th in the
overall power list.

ICICI Group Global Private Clients (GPC) has won the coveted
'Euromoney Private Banking Award 2010' for Best Bank in the Super-
Affluent Category (USD 500,000 to USD 1 million) - India. The other
categories in which GPC picked up awards were:

o Fixed Income Portfolio Management

o Lending/Financing Solutions

o Precious Metals Investment

o Private Equity Investment

o Specialized Services - Entrepreneurs

o FX/Rates Derivatives Supplier

ICICI Bank wins the Asian Banker Award for Excellence in SME Banking
2009

56
 • ICICI Bank won the second prize in the Six Sigma Excellence
Awards, conducted by Indian Statistical institute, Bangalore for
"Improving Sales for TV Banking business"

• Mr.N. Vaghul, Former Chairman, ICICI Bank was awarded the

"Padma Bhushan"

ICICI Group offers a wide range of banking products and financial services
to corporate and retail customers through a variety of delivery channels and
through its specialised group companies, subsidiaries and affiliates in the
areas of personal banking, investment banking, life and general insurance,
venture capital and asset management.

1. Recognition of your expectation of privacy

We recognize that our customers expect privacy and security for their
personal and financial affairs. We understand that, by selecting us for
your banking needs, you have entrusted us to safeguard your personal
financial information. We want you to be informed of our
commitment to protect the privacy of your personal financial
information with the following privacy principles and practices.

2. What personally identifiable information is collected from you?

We collect information from you regarding name, addresses, email
addresses, passport number, Income, PAN, details of nominees, etc.

3. Cookies
A cookie is a data file that certain Web sites write to your computer's
57
 hard drive when you visit such sites. A cookie file can contain
information such as a user identification code that the site uses to
track the pages you have visited and use the information
commercially. We do not use cookies on our web site.

4. How we use, collect, and retain customer information

On our site we collect, retain, and use information about you only
when we reasonably believe that it will help administer our business
or provide products, services, and other opportunities to you. We
collect and retain information about you only for specific business
purposes.

5. We use information to :

o Open and administer your accounts and to protect your records

and funds.

o Comply with all applicable laws and regulations

Help us design or improve our products and services for your
benefit.

o Understand your financial needs so that we can provide you

with quality products and superior service.

58
 o To comply with laws, guidelines and regulations that govern
the financial services in the country.

o To quote examples we need to obtain Passport number for NRI

account & PAN for deposit accounts in respect of resident
customers.

6. How we keep customer information accurate

It is in your interest, and it is our objective, for us to have accurate,
current, and complete information concerning you and your accounts.
We have strict procedures that our employees abide by to meet this
objective. While some procedures are required by Central, State laws
or RBI regulations, we have implemented additional procedures to
maintain accurate, current, and complete financial information,
including processes to update information and remove outdated
information. If you believe that we have incorrect information about
you or your accounts, please email us through the feedback
mechanism provided on the website or modify the profile information
on the site as permissible. We will correct any erroneous information
as quickly as possible.

7. How we limit access to customer information by our employees

We have procedures that limit access to personally identifiable
information to those employees with a business reason for knowing
such information about you. We educate our employees on their
responsibility to protect the confidentiality of customer information,
and hold them accountable if they violate this privacy policy.
59
8. Our security procedures to protect customer information
We follow best security practices to help prevent unauthorized access
to confidential information about you.

9. How we restrict the disclosure of customer information

ICICI does not release customer information except as directed by law
or as per your mandate. We do not share specific information about
customer accounts or other personally identifiable data with
nonaffiliated third parties for their independent use unless:

o The information is provided to help complete a transaction

initiated by you;

o You request or authorize it;

o The disclosure is required by/or directed by law; or

o You have been informed about the possibility of such

disclosure for marketing or similar purposes through a prior
communication and have been given the opportunity to decline

10.Disclosing our privacy commitment to you we want you to understand

our commitment to personal privacy and have formulated this privacy
policy. This privacy policy is provided to:

o A potential customer who inquires about our products and

services or who would like a copy of our privacy policy
60
 o A customer who has established a relationship with us

o A potential customer who has applied for a loan

o A visitor to ICICI's web site

11. If you have any questions or concerns about this privacy policy,
please send an e-mail to us at privacyicici@icicimail.com or write to
us at AGM Internet Banking, IT Department, ICICI Bhavan,
Corporate Center, Madam Cama Road, Mumbai, INDIA Pin Code
400 021.

61
Disclosure

State Bank of India with its 200 years of service to the nation embodies
safety, trust and integrity. We have always woven these values into our
relationship with customers. Internet banking is one more effort to add value
to the relationship. Internet banking facility offers convenience of 24X7
banking to its customers. In terms of the Code of Fair Banking Practice, we
notify you on the characteristics of Internet Banking.

Security Aspects

ICICI's Internet banking channel is protected by advanced security features,

both physical and logical. ICICI has considered various risks inherent in
transacting over a public network such as the Internet, and has deployed
appropriate security measures to protect customers. Firewalls allow only
valid web traffic to reach our server. Proven 128-bit Secure Socket Layer
(SSL) encryption technology is deployed to ensure that the information
exchanged between your computer and www.onlineicici.com over the
Internet is secure and cannot be intruded upon. 'VeriSign' certifies that
information exchanged during a valid session is protected during its
transmission over the Internet. Additionally, the bank has installed
mechanisms such as Intrusion detection Systems.

Services offered

62
Online icici is an alternative channel for our customers and provides most of
the services available at branches. Financial services such as fund transfers,
third party payments, bill payments, opening bank accounts, closure of loan
account, loan part payments, PPF transactions and issue of demand draft can
be done through this service. Non-financial services such as viewing account
information, request for chequebook, issuing standing instructions and the
like are enabled through this channel.

Control measures

We have set up the following operational and control measures for

Onlineicici customers:

• Access to Internet banking is provided only on registration.

• The UserID and password generation is conducted in a secure

environment and its distribution is automated.

• UserID and password is printed on tamper-proof stationery and

mailed separately to the customers. This reduces risks.

• Change of UserID and password on the first log on is mandatory.

• All correspondence on the service is sent to the address registered at

the branch.

63
 • Customer logins and activities are tracked and archived for future
reference.

• Customer can fix the limits on the monetary value of transactions,

which they desire to carry out over this service. The customer alone
can modify this.

Precautions

To enhance the security in conducting banking and other transactions, it is

recommended that customers adopt the following practices. These are not
special to ICICI site banks world over expect their customers to do this
much in mutual interest.

• Username and password allow entry to the internet banking site.

Smart users avoid typing these on the keyboard while someone is
close by.

• Maintain different passwords for Login and for Transactions.

• Do not leave your computer unattended while you're connected to

www.onlineicici.com.

• It is advisable to change your password if you believe that anyone has

managed to get access to it. Using 'untrusted' systems for banking
transactions is best avoided

64
 • Please log off from www.onlineicici.com and InstantICICI and close
the browser window after you have finished your session. Improper
logging off will leave the connection between your machine and
www.onlineicici.com active for some time.

• Avoid writing down your Username and password in your diary or

such place, which can be accessed by others.

• It is not a good idea to let the computer 'remember' your Username

and password.

• Never divulge your Username and password to others.

Terms of Use

General Information:

• You should register for OnlineICICI with the branch where you
maintain the account.

• If you maintain accounts at more than one branch, you need to register
at each branch separately.

• Normally OnlineICICI services will be open to the customer only

after he acknowledges the receipt of password.

65
 • We invite you to visit your account on the site frequently for
transacting business or viewing account balances. If you believe that
any information relating to your account has a discrepancy, please
bring it to the notice of the branch by e-mail or letter.

• In a joint account, all account holders are entitled to register, as users

of OnlineICICI, but transactions would be permitted based on the
account operation rights recorded at the branch. (To begin with the
services will be extended only to single or Joint E or S accounts only).

• All accounts at the branch whether or not listed in the registration

form, will be available on the OnlineICICI. However the applicant has
the option to selectively view the accounts on the OnlineICICI.

Security:

• The Branch where the customer maintains his account will assign:

1. User-id &

2. Password

• The User-id and Password given by the branch must be replaced by

UserName and Password of customer's choice at the time of first log-
on. This is mandatory.

66
 • Bank will make reasonable use of available technology to ensure
security and to prevent unauthorised access to any of these services.
The OnlineICICI service is VERISIGN certified which guarantees,
that it is a secure site.It means that

1. You are dealing with ICICI at that moment.

2. The two-way communication is secured with 128-bit SSL

encryption technology, which ensures the confidentiality of the
data during transmission.

• These together with access control methods designed on the site

would afford a high level of security to the transactions you conduct.
ICICI will soon be implementing PKI/Digital Signature.

• You are welcome to access OnlineICICI from anywhere anytime.

However, as a matter of precaution, customers may avoid using PCs
with public access.

• There is no way to retrieve a password from the system. Therefore if a

customer forgets his password, he must approach the branch for re-
registration.

Bank's terms:

67
 1. All requests received from customers are logged for backend
fulfillment and are effective from the time they are recorded at the
branch.

2. Rules and regulations applicable to normal banking transactions in

India will be applicable mutatis mutandis for the transactions executed
through this site.

3. The OnlineICICI service cannot be claimed as a right. The bank may

also convert this into a discretionary service anytime.

4. Dispute between the customer and the Bank in this service is subject
to the jurisdiction of the courts in the Republic of India and governed
by the laws prevailing in India.

5. The Bank reserves the right to modify the services offered or the
Terms of service of OnlineICICI. The changes will be notified to the
customers through a notification on the Site.

Customer's obligations:

68
 1. The customer has an obligation to maintain secrecy in regard to
Username & Password registered with the Bank. The bank
presupposes that login using valid Username and Password is a valid
session initiated by none other than the customer.

2. Transaction executed through a valid session will be construed by

ICICI to have emanated from the registered customer and will be
binding on him / her.

3. The customer will not attempt or permit others to attempt accessing

the OnlineICICI through any unlawful means.

Do's & Don'ts:

69
1. The customer should keep his/her ID and password strictly
confidential and should not divulge the same to any other person. Any
loss sustained by the customer due to non-compliance of this
condition will be at his/her own risk and responsibility and the Bank
will not be liable for the same in any manner.

2. The customer is free to choose a password of his own for OnlineICICI

services. As a precaution a password that in is generic nature,
guessable or inferable personal data such as name, address, telephone
number, driving license, date of birth, etc. is best avoided. Similarly it
is a good practice to commit the password to memory rather than
writing it down somewhere.

3. It may not be safe to leave the computer unattended during a valid

session. This might give access to your account information to others.

CONCLUSION:

70
Like any other product or service, E-Banking is not a one-time activity. The
bank has to persuade its customers to use the service to achieve cost
advantage. Since many customers do not use Internet banking, the bank has
to enrich its services by additional payment tie-ups so that customers have
more options. In this case, data security needs to be very thorough.

While electronic banking can provide a number of benefits for

customers and new business opportunities for banks, it exacerbates
traditional banking risks. Even though considerable work has been done in
adapting banking and supervision regulations, continuous vigilance and
revisions will be essential as the scope of e-banking increases. In particular,
there is still a need to establish greater harmonization and coordination at the
international level. Moreover, the ease with which capital can potentially be
moved between banks and across borders in an electronic environment
creates a greater sensitivity to economic policy management. To understand
the impact of e-banking on the conduct of economic policy, policymakers
need a solid analytical foundation. Without one, the markets will provide the
answer, possibly at a high economic cost. Further research on policy-related
issues in the period ahead is therefore critical.

BIBLIOGRAPHY:

71
Books Referred:

— Banking in 21st Century – I. V. Trivedi

— Indian Banking in Electronic Era – S. S. Kaplan and N. S. Choubey

— It in banks-emerging trends – kauturi nageshwara rao

Magazines:-

 Outlook India

 India Today

 Technology and You

Websites:-

 www.icicibank.com
72
  www.citibank.com

 www.hdfc.com

 www.pnbindia.com

 www.rbi.gov.in

Search Engines:-

 www.google.com

 www.khoj.com

 www.yahoo.com

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