PROJECT REPORT

ON
“CUSTOMER SATISFACTION FROM E-BANKING SERVICES
WITH A STUDY OF HDFC BANK”
Submitted in the partial fulfillment of the degree of
Bachelor of Business Administration

VISHNU VINAY

BBA

ROLL NO.26

ST THOMAS
 CHAPTER 1
Introduction
 INTRODUCTION TO INDUSTRY

Modern banking in India originated in the last decade of the 18th century. Among
the first bank were the Bank of Hindustan, which was established in 1770 and
liquidated in 1829–32; and the General Bank of India, established in 1786 but
failed in 1791. The largest and the oldest bank which is still in existence is the
state bank of India (S.B.I). It originated and started working as the Bank of
Calcutta in mid-June 1806. In 1809, it was renamed as the Bank of Bengal. This
was one of the three banks founded by a presidency government, the other two
were the Bank of Bombay in 1840 and the Bank of Madras in 1843. The three
banks were merged in 1921 to form the Imperial Bank of India, which upon India's
independence, became the State Bank of India in 1955. For many years the
presidency banks had acted as quasi-central banks, as did their successors, until
the Reserve Bank of India was established in 1935, under the Reserve Bank of
India Act, 1934. In 1960, the State Banks of India was given control of eight state-
associated banks under the State Bank of India (Subsidiary Banks) Act, 1959.
These are now called its associate banks. In 1969 the Indian government
nationalized 14 major private banks; one of the big banks was Bank of India. In
1980 6 more private banks were nationalized. These nationalized banks are the
majority of lenders in the Indian economy. They dominate the banking sector
because of their large size and widespread networks. The Indian banking sector is
broadly classified into scheduled and non-scheduled banks. The scheduled banks
are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934.
The scheduled banks are further classified into: nationalized banks; State Bank of
India and its associates; Regional Rural Banks (RRBs); foreign banks; and other
Indian private sector banks. The term commercial banks refer to both scheduled
and non-scheduled commercial banks regulated under the Banking Regulation
Act, 1949. Generally the supply, product range and reach of banking in India is
fairly mature-even though reach in rural India and to the poor still remains a
challenge. The government has developed initiatives to address this through the
State Bank of India expanding its branch network and through the National Bank
for Agriculture and Rural Development (NABARD) with facilities like microfinance.
History of Banking in India
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 reasons 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 until 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
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 the first phase, the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100 banks,
mostly small. To streamline the functioning and activities of commercial banks,
the Government of India came up with The Banking Companies Act, 1949 which
was later changed to Banking Regulation Act 1949 as per amending Act of 1965
(Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for
the supervision of banking in India as the Central Banking Authority.
Phase II
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially 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 nationalized in 1960 on
19 July 1969, major process of nationalization was carried out. It was the effort of
the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks
in the country were nationalized. Second phase of nationalization Indian Banking
Sector Reform was carried out in 1980 with seven more banks. This step brought
80% of the banking segment in India under Government ownership.
The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country:
 1949: Enactment of Banking Regulation Act.
 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India
rose to approximately 800% in deposits and advances took a huge jump by
11,000%. Banking in the sunshine of Government ownership gave the public
implicit faith and immense confidence about the sustainability of these
institutions.
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 Narasimha, 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
swifter. 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 convertible, and banks and their customers have limited
foreign exchange exposure. Nationalization of Banks in India The nationalization
of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime
minister. It nationalized 14 banks then.
These banks were mostly owned by businesspersons and even managed by them.
 Central Bank of India
 Bank of Maharashtra
 Dena Bank  Punjab National Bank
 Syndicate Bank
 Canara Bank
 Indian Bank
 Indian Overseas Bank
 Bank of Baroda
 Union Bank
 Allahabad Bank
 United Bank of India
 UCO Bank
 Bank of India
Before the steps of nationalization of Indian banks, only State Bank of India (SBI)
was nationalized. It took place in July 1955 under the SBI Act of 1955.
Nationalization of Seven State Banks of India (formed subsidiary) took place on 19
July 1960.
State Bank of India is India's largest commercial bank and is ranked one of the top
five banks worldwide. It serves 90 million customers through a network of 9,000
branches and it offers -- either directly or through subsidiaries -- a wide range of
banking services.
The second phase of nationalization of Indian banks took place in the year 1980.
Seven more banks were nationalized with deposits over 200 crores. Until this
year, approximate ly 80% of the banking segment in India was under Government
ownership.
After the nationalization of banks in India, the branches of the public sector banks
rose to approximately 800% in deposits and advances took a huge jump by
11,000%.
 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1969: Nationalization of 14 major banks.
 1980: Nationalization of seven banks with deposits over 200 crores
 INTRODUCTION OF INTERNET BANKING

Internet banking-Internet banking is changing the banking industry and is having

the major effects on banking relationships. Banking is now no longer confined to
the branches were one has to approach the branch in person, to withdraw cash or
deposit a cheque or request a statement of accounts. In true Internet banking,
any inquiry or transaction is processed online without any 10 Downloaded by
Vishnu vinay (vishnuotocare@[Link]) lOMoARcPSD|21851326 reference to
the branch (anywhere banking) at any time. Providing Internet banking is
increasingly becoming a "need to have" than a "nice to have" service.

WHAT IS E-BANKING?
E-banking is defined as the automated delivery of new and traditional banking products and
services directly to customers through electronic, interactive communication channels. E-
banking includes the systems that enable financial institution customers, individuals or
businesses, to access accounts, transact business, or obtain information on financial products
and services through a public or private network, including the Internet. Customers access e-
banking services using an intelligent electronic device, such as a personal computer (PC),
personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone
telephone. While the risks and controls are similar for the various e-banking access channels,
this booklet focuses specifically on Internet-based services due to the Internet’s widely
accessible public network. Accordingly, this booklet begins with a discussion of the two primary
types of Internet websites: informational and transactional E-banking can be offered in two
main ways. First, an existing bank with physical offices can also establish an online site and offer
e-banking services to its customers in addition to the regular channel. For example, Citibank is a
leader in e-banking, offering walk-in, face-to-face banking at its branches throughout many
parts of the world as well as e-banking services through the World Wide Web. Citibank
customers can access their bank accounts through the Internet, and in addition to the core e-
banking services such as account balance inquiry, funds transfer, and electronic bill payment,
Citibank also provides premium services including financial calculators, online stock quotes,
brokerage services, and insurance.
HISTORY OF E- BANKING
On October 1, 2000, the electronic signatures bill took effect, recognizing
documents signed online as legal. Some banks plan to begin using electronic
checks as soon as they can work out various security measures.
The range of e-banking services is likely to increase in the future. Some banks
plan to introduce electronic money and electronic checks. Electronic money can
be stored in computers or smart cards and consumers can use the electronic
money to purchase small value items over the Internet. Electronic checks will look
similar to paper checks, but they can be sent from buyers to sellers over the
Internet, electronically endorsed by the seller, and forwarded to the seller's bank
for electronic collection from the buyer's bank. Further, banks seek to offer their
customers more products and services such as insurance, mortgage, etc.

NEED FOR E-BANKING

One has to approach the branch in person, to withdraw cash or deposit a cheque
or request a statement of accounts. In true Internet banking, any inquiry or
transaction is processed online without any reference to the branch (anywhere
banking) at any time. Providing Internet banking’s increasingly becoming a "need
to have" than a "nice to have" service. The net banking, thus, now is more of a
norm rather than an exception in many developed countries due to the fact that it
is the cheapest way of providing banking services. Banks have traditionally been
in the reform of harnessing technology to improve their products, services and
efficiency.

Types of E-Banking
The common assumption is that Internet banking is the only method of on-line
banking. However, this is not strictly the case, as several types of service are
currently available:
 PC Banking - The forerunner to Internet banking has been around since the late
1980's and is still widely used today. Individual banks provide software which is
loaded on to an SME's office computer. The SME can then access their bank
account via a modem and telephone link to the bank. Access is not necessarily via
the Internet.
 Internet Banking - Using a Web browser, a user can access their account, once
the bank's application server has validated the user's identity
 Digital TV Banking- Using the standard digital reception equipment (set top box
and remote control), users can access their bank account. Abbey National and
HSBC services are available via Digital TV providers. One of its main selling points
is that no account details are transmitted via the World Wide Web;
 Text Phone Banking - HSBC have introduced this service to allow customers
with text phones to check their balance, pay bills and transfer money. Internet
banking can be split into two distinct groups :  Traditional banks and building
societies use the Internet as an add-on service with which to give businesses
access to their accounts.
 New Internet-only banks have no bricks and mortar presence on the High
Street. Therefore, they have lower overheads and can offer higher rates of
interest and lower charges.

FEATUERS OF E-BANKING
E-Banking provide exceptional rates on Savings, CDs, and IRAs
Checking with no monthly fee, free bill payment and rebates on ATM surcharges
credit cards with low rates
Easy online applications for all accounts, including personal loans and mortgages
24-hour account access
It provides Quality customer service with personal attention
It provides the quick services to their customers.
Enables transfer of funds from one place to another (banks).
Exchange of statistical information among banks.
Enables foreign exchange operations.
Inter-bank applications like settlement of funds between banks.
Provides facilities like demat operation, ATM operation, online banking.

BENEFITS OF E-BANKING For Banks:

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.
Customer 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. Efficiency- 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.
Customer Service and Satisfaction- Banking on the Internet not only allow the
customer 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 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. With better
and faster options, a bank will surely be able to create better customer relations
and satisfaction.
Image- 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.

For Customers:
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 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
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. The best benefit is that Internet banking is
free. At many banks the customer doesn't have to maintain a required minimum
balance. The second big benefit is better interest rates for the customer.

Features of Internet banking

The features available from an on-line bank account are similar to those which are
availab le via 'phone banking or visiting the local branch. On-line banking features
do differ between the banks, but usually include:
 Transfer of funds between accounts;
 It brings efficiency in CRM(Customer relationship management)
 Make Payment of bills
 Introduces new & innovative products &services
 View balance and statements;
 Brings door to door services
 Create, view and maintain Standing Orders
 Have evolutionary trend at a global scenario.  ADVANTAGES OF E-BANKING:
- a) Convenience - Unlike your corner bank, online banking sites never close;
they’re available 24 hours a day, seven days a week, and they’re only a mouse
click away. With pressures on time and longer travelling periods, more and more
people find it tiresome waiting in queues. People want flexibility, and Internet
banking offers just that.
b) Ubiquity – If you’re out of state or even out of the country when a money
problem arises, you can log on instantly to your online bank and take care of
business, 24\7.
c) Transaction speed - Online bank sites generally execute and confirm
transactions at or quicker than ATM processing speeds.
d) Efficiency- You can access and manage al of your bank accounts, including
IRA’s, CDs, even securities, from one secure site.
e) Effectiveness- Many online banking sites now offer sophisticated tools,
including account aggregation, stock quotes, rate alert and portfolio managing
program to help you manage all of your assets more effectively. Most are also
compatible with money managing programs such as quicken and Microsoft
money.
f) Cheaper alternative: - With increasing competition, it seems to be the cost
factor that is driving banks to offer the facility. The Internet is still a very cheap
alternative to opening a physical branch, and most of the push seems to be
coming from the supply side. The costs of a banking service through the Internet
form a fraction of costs through conventional methods.
g) From snob value to necessity: - A couple of years ago, there was a belief even
among bankers that customers opening new accounts wanted the online banking
facility, just to "feel good" and very few of them actually used the services. Today,
bankers believe that the trend from `nice to have' is changing to `need to have'.
The "snob value" of banking with an organization that could offer service on the
Internet has given way to a genuine necessity, he feels. "It all depends on how
busy a person is."
DISADVANTAGES OF INTERNET BANKING
a) Start-up may take time – In order to register for your bank’s online program,
you will probably have to provide ID and sign a form at a bank branch. If you and
your spouse wish to view and manage their assets together online, one of you
may have to sign a durable power of attorney before the bank will display all of
your holdings together.
b) Learning curves- Banking sites can be difficult to navigate at first. Plan to invest
some time and\or read the tutorials in order to become comfortable in your
virtual lobby.
c) Bank site changes- Even the largest banks periodically upgrade their online
programs, adding new features in unfamiliar places. In some cases, you may have
to re-enter account information.  HOW E-BANKING CAN EASE YOUR LIFE Indian
banks are trying to make your life easier. Not just bill payment, you can make
investment, shop or buy tickets and plan a holiday at your fingertips. In fact,
source s from ICICI Bank tell us, "Our Internet banking base has been growing a t
an exponential pace over the last few years. Currently around 78 percent of the
bank's customer base is registered for Internet banking." To get started, all you
need is a computer with a modem or other dial-up device, a checking account
with a bank that offers online service and the patience to complete about a one-
page application-- which can usually be done online. You can a vail the following
services.
a) Bill payment service: Each bank has tie-ups with various utility companies,
service providers and insurance companies, across the country. It facilitates the
payment of electricity and telephone bills, mobile phone, credit card and
insurance premium bills. To pay bills, a simple one-time registration for each biller
is to be completed. Standing instructions can be set, online to pay recurring bills,
automatically. One-time standing instruction will ensure that bill payments do not
get delayed due to lack of time. Most interestingly, the bank does not charge
customers for online bill payment.
b) Fund transfer: Any amount can be transferred from one account to another of
the same or any another bank. Customers can send money anywhere in India.
Payee’s account number, his bank and the branch is needed to be mentioned
after logging in the account. The transfer will take place in a day or so, whereas in
a traditional method, it takes about three working days. ICICI Bank says that
online bill payment service and fund transfer facility have been their most popular
online services.
c) Credit card customers: Credit card users have a lot in store. With Internet
banking, customers can not only pay their credit card bills online but also get a
loan on their cards. Not just this, they can also apply for an additional card,
request a credit line increase and God forbid if you lose your credit card, you can
report lost card online.
d) Railway pass: This is something that would interest all the aam janta. Indian
Railways has tie d up with ICICI bank and you can now make your railway pass for
local trains online. The pass will be delivered to you at your doorstep. But the
facility is limited to Mumbai, Thane, Nasik, Surat and Pune. The bank would just
charge Rs. 10 + 12.24 percent of service tax.
e) Investing through Internet banking: Opening a fixed deposit account cannot get
easier than this. An FD can be opened online through funds transfer. Online
banking ca n also be a great friend for lazy investors. Now investors with
interlinked demat account and bank account can easily trade in the stock market
and the amount will be automatically debited from their respective bank accounts
and the shares will be credited in their demat account.
f) Recharging your prepaid phone : Now there is no need to rush to the vendor to
recharge the prepaid phone, every time the talk time runs out. Just top-up the
prepaid mobile cards by logging in to Internet banking. By just selecting the
operator's name, entering the mobile number and the amount for re charge , the
phone is again back in action within few minutes.
g) Shopping at your fingertips : Leading banks have tie ups with various shopping
websites. With a range of all kind of products, one can shop online and the
payment is also made conveniently through the account. One can also buy railway
and air tickets through Internet banking.

EMERGING CHALLENGES
Information technology analyst firm, the Meta Group, recently reported
"financial institutions who don't offer home banking by the year 2000 will become
marginalized." By the year of 2002, a large sophisticated and highly competitive
Internet Banking Market will develop which will be driven by:
 Demand side pressure due to increasing access to low cost electronic services.
 Emergence of open standards for banking functionality
.  Growing customer awareness and need of transparency.
 Global players in the fray
 Close integration of bank services with web based E-commerce or even
disintermediation of services through direct electronic payments (E- Cash).
 More convenient international transactions due to the fact that the Internet
along with general deregulation trends eliminates geographic boundaries.
 Move from one stop shopping to ‘Banking Portfolio’ i.e. Unbundled product
purchases. Certainly some existing brick and mortar banks will go out of business.
But that's because they fail to respond to the challenge of the Internet. The
Internet and its underlying technologies will change and transform not just
banking, but also all aspects of finance and commerce. It represents much more
than a new distribution opportunity. It will enable nimble players to leverage their
brick-and-mortar presence to improve customer satisfaction and gain share.
 INTRODUCTION OF BANK
HDFC COMPANY PROFILE

INTRODUCTION
HDFC Bank Ltd. is an Indian banking and financial services company
headquartered in Mumbai Maharashtra It has a base of 104154 permanent
employees as of 30 June 2019. HDFC Bank is India’s largest private sector lender
by assets. It is the largest bank in India by market capitalization as of March
[Link] Bank, one amongst the firsts of the new generation, tech-savvy
commercial banks of India, was incorporated in August 1994, after the Reserve
Bank of India allowed setting up of banks in the private sector. The Bank was
promoted by the Housing Development Finance Corporation Limited, a premier
housing finance company (set up in 1977) of India.
HISTORY
HDFC Bank was incorporated in 1994, with its registered office in Mumbai
Maharashtra India Its first corporate office and a full service branch at Sandoz
House, Worli were inaugurated by the then Union Finance Minister Manmohan
Singh As of June 30, 2019, the Bank's distribution network was at 5500 branches
across 2,764 cities. The bank also installed 430,000 POS terminals and issued
23570,000 debit cards and 12 million credit cards in FY 2017. The Housing
Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of ‘HDFC
Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.

HDFC BANK SERVICES

NET BANKING: Net Banking is HDFC Bank’s Internet Banking service. Providing up-
to-thesecond account information, Net Banking lets you manage your account
from the comfort of your mouse - anytime, anywhere.
HDFC Bank Net Banking Secure Access. HDFC Bank has implemented a new
security solution for its customers - Secure Access .As your security is our top
priority, we have initiated the Secure Access solution to protect you from
fraudsters and hackers - who are looking to find a way to access your account.
Currently following transactions are covered under Secure Access
• Transfer from one HDFC Bank account to other HDFC Bank account holders
(under distinct customer ID)
• Transfer from HDFC Bank account to any other Bank’s account (also known as
RTGS & NEFT)
• Visa Money Transfer
• Third Party Demand Draft through Net Banking.
Third Party Transfer-Third-Party Transfer is a Net Banking feature for which you
will need your unique Customer ID and IPIN (password). Login to Net Banking to
confirm that your ID is active in our records.

What is TPT?
With Third-Party Transfer (TPT) you can transfer funds online from your HDFC
Bank account to another HDFC Bank/Other Bank account (beneficiary), anywhere
in India. This is a realtime transaction and the debit and credit will reflect in the
respective accounts immediately.
Third Party Transfer can be initiated:
 From your Account to other Bank Accounts using
 National electronic Funds Transfer (NEFT) - Funds will be credited to the
beneficiary account in two working days
 Real Time Gross Settlement (RTGS) - Funds will be credited to the beneficiary
account on the same working day.
 From your HDFC Bank account to other HDFC Bank accounts (different cut
sides).
 From your account to any Visa Card (Debit or Credit) within India.
 For issuance of Third Party Demand Drafts from your account. You can transfer
up to a maximum of Rs. 10, 00,000/- per cuts id per day using this facility. This
amount can be transferred in parts or on a single basis.
OBJECTIVES OF THE STUDY

 To study about the factors that affects the customer perception towards e-
banking of HDFC bank.

 To know about the satisfaction level of customer towards e-banking

services.

 To find out the major problems faced by the customers while using e-
banking services.
SCOPE OF THE STUDY

• Area is restricted to only DELHI because due to the time constraint.

• All the classes of the customers were taken into consideration.

• This study covered E-Banking service sector.

• This is a realistic source directly collected from the customers of Bank.

IMPORTANCE OF THE STUDY

* It will help to find the happy and satisfied customers from e- banking services

* It will help to find the unhappy and dissatisfied customers from the services of
HDFC bank.

* It will help to know about the awareness of e banking services amongst the
different customers.
RESEARCH DESIGN

Research design constitutes the blue print for the collection, measurement and
analysis of data. The present study seeks to identify the extent of preferences of
E- Banking over traditional banking among service class. The research design is
descriptive in nature. The research has been conducted on customers of HDFC
Bank within DELHI. For the selection of the sample, convenient sampling method
was adopted and an attempt has been made to include all the age groups and
gender of every class. RESEARCH INSTRUMENT The instrument used for gathering
data was questionnaire. To get further insight in to the research problem,
interview regarding their buying practices too was made. This was done to
crosscheck the authenticity of the data provided. To supplement the primary data
and to facilitate the process of drawing inference, secondary data was collected
from published sources like magazines, journals, newspapers etc.
SAMPLE DESIGN AND SIZE

In this research project Descriptive research design is used. Judgment and

Convenience sampling method will be used to get the information about online
banking. This method is used because w e are interested in exploring gender, age,
or occupation disparities in terms of online banking in the population. For
conducting this research, a structured questionnaire is prepared and sample of 70
customers is taken from HDFC bank.
SAMPLING SIZE

It indicates the numbers of people to be surveyed. Though large samples give

more reliable results than small samples but due to constraint of time and money,
the sample size was restricted to 70 respondents. The respondents belong to
different age group.
TOOLS AND TECHNIQUES OF ANALYSIS:

The data so collected will be analyzed through the application of statistical

techniques, such as bar graphs and pie charts.
DATA COLLECTION

Keeping in view the nature of requirements of the study to collect all the relevant
information regarding the extent of awareness of the customers using E-banking
facilities offered by HDFC bank, direct personal interview method with structured
questionnaire was adopted for the collection of primary data. Secondary data has
been collected through the various internet sites by surfing on Internet and from
the records available with the bank.
SOURCE OF DATA SECONDARY DATA:

• Articles on E-Banking taken from journals, magazines published from time to

time.
• Through internet.

PRIMARY DATA:
Questionnaire was used to collect primary data from respondents. The
questionnaire was structured type and contained questions relating to different
dimensions of e- banking preferences among service class such as level of usage,
factors influencing the usage of ebanking services, benefits accruing to the users
of e-banking services, problems encountered. An attempt was also made to elicit
reasons for its non-usage.
NEED OF THE STUDY

• To determining growth direction of online banking service.

• Promoting E-banking services in banking industry.

• Customer perception will be taken into consideration about the internet

banking.
LIMITATION OF STUDY

Every research is conducted under some constraints and this research is not an
exception. Limitations of this study are as follows: -
• As research is based on a sample, therefore, the findings may not reveal the
factual information about the research problem, though an utmost care will be
taken to select a truly representative sample.

• There may be some bias in the responses of the respondents which cannot be
ruled out fully.

• Sudden change in the e-banking practices during the course of research can
affect the results.

• The study is limited to areas of Delhi only.

• The sample size of only 70 was taken from the large population for the purpose
of study, so there can be difference between results of sample from total
population.

• People were reluctant to go in to details because of their busy schedules.

• Due to continuous change in environment, what is relevant today may be

irrelevant tomorrow.
RESEARCH METHODOLOGY
What is Research…?
Research is defined as human activity based on intellectual application in the
investigation of matter. The primary purpose for applied research is discovering,
interpreting, and the development of methods and systems for the advancement
of human knowledge on a wide variety of scientific matters of our world and the
universe.
The term research is also used to describe an entire collection of information
about a particular subject.

METHODOLOGY
It is the method followed while conducting the study on a particular project.
Through this methodology a systematic study is conducted on the basis of which
the basis of a report is produced.
It includes not only the research methods but also considers the logic behind the
methods used in the context of the study and explains why only a particular
method or technique has been used. The methodology adopted for studying the
objectives was surveying the in- house customers of the bank in the State of
Delhi.
 REVIEW OF LITRETURE

1) Author Name: Malhotra, Pooja & Singh, B. Topic: “Determinants of Internet

banking adoption by banks in India” Date: December, 05 2019.
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 2018. The sample consists of 62 banks operating in India at 31 March 2017.
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 advance d
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 re searchers.

2) Author Name: Azouzi, D. Topic: “The Adoption of Electronic Banking in Tunis

ia”, Journal of Internet Banking and Commerce” Date: June, 09 2018.
This paper aims to check if the current and prompt technological revolution
altering the whole world has crucial impacts on the Tunisia n banking sector.
Particular ly, this study seeks some clues on which we can rely in order to
understand the customers' behavior regarding the adoption of electronic banking.
To achieve this purpose, empirical research is carried out in Tunisia and it reveals
that panoply of factors is affecting the customers-attitude toward e-banking. For
instance; age, gender and educational qualifications seem to be important and
they split up the group into electronic banking adopters and traditional banking
defenders and so, they have significant influence on the customers' adoption of e-
banking. Furthermore, this study
Shows that despite the presidential incentives and in spite of being fully aware of
the ebanking's benefits, numerous respondents are still using the conventional
banking. It is worthy to mention that the fear of loss because of transactions
errors or hackers plays a significant role in alienating Tunisian customers from
online banking.

3) Author Name: B. Dizon, J.A. Topic: “Special Feature: Electronic Banking”. Date:
May, 22, 2017.
In this study they have founded that while big banks still conduct the bulk of their
business in brick and mortar bank branches, the finance sector has been
increasingly investing on e-banking facilities to offer 24-hour, queue- free services
to their regular clients, whether through ATM machines, mobile phones or the
Internet. "E- Banking’s appeal is primarily its convenience. Clients nowadays want
instant results; they don't want to wait anymore," said Francisco M. Caparros, Jr.,
senior vice-president of Asia United Bank and president of Banc Net. It’s also
turned out to be a more efficient way to process transactions, as e-banking does
away with most of the paperwork that clients have to accomplish. "A lot of people
don't like filling forms,” Mr. Caparros added. "Online banking, in particular, relies
on user names and passwords which need to be protected," said Ferdinand G. La
Chica, first vice-president and marketing group head for Sterling Bank of Asia.
These anti- theft barriers are at time s supplemented by transaction passwords
and "tokens", often a keychain- like device that is issued to the client and
generates random, one-time passwords to enable him to log into his account
online. Last year, the Rural Bank Association of the Philippines announced that its
members are looking to appoint local merchants like sari-sari stores as third party
agents where consumers can open new accounts and make large payments. Such
informal outlets will enable banks to reach out to small-income businesses and
individuals, particularly those in the agrarian sector, most of who are based
outside the city center.
4) Name: Uppal, R.K. & Chawla, R. Topic: “E-Delivery Channel-Based Banking
Services: An Empirical Study. Institute of Chartered Financial Analysts of India
(Hyderabad)”. Date: Feb, 06, 2017.
This study highlights customer perceptions regarding e-banking services. A survey
of 1,200 respondents was conducted in October 2008 in Ludhiana district, Punjab.
The respondents were equally divided among three bank groups namely, public
sector, private sector and foreign banks. The present study investigates the
perceptions of the bank customers regarding necessity of e-banking services,
quality of e-banking services, bank frauds, future of e-banking, preference of bank
customers regarding banks, comparative study of banking services in various bank
groups, preferences regarding use of echannels and problems faced by e-bank
customers. The major finding of this study is that customers of all bank groups are
interested in e-banking services, but at the same time are facing problems like,
inadequate knowledge, poor network, lack of infrastructure, unsuitable location,
misuse of ATM cards and difficulty to open an account. Keeping in mind these
problems faced by bank customers, this paper frames some strategies like
customer education, seminars/meetings, proper network and infrastructure
facilities, online shopping facilities, proper working and installation of ATM
machines, etc., to enhance e-banking services. Majority of professionals and
business class customers a s well as highly educated and less educated customers
also feel that e-banking has improved the quality of customer services in banks.

5) Author Name: Reeti, Sanjay, and Malhotra, A. Topic: “The Customers’

perspective s regarding e-banking in an e merging economy.” Date: June, 28,
2016.
Stated about the Customers’ perspectives regarding e-banking in an emerging
economy. So that, the author determining various factors affecting customer
perception and attitude towards and satisfaction with e-banking is an essential
part of a bank's strategy formulation process in an emerging economy like India.
To gain this understanding in respect of Indian customers, the study was
conducted on respondents taken from the northern part of India. The major
findings depict that customers are influenced in their usage of e-banking service s
by the kind of account they hold, their age and profession, attach highest degree
of usefulness to balance enquiry service among e -banking services, consider
security & trust most important in affecting their satisfaction level and find slow
transaction speed the most frequently faced problem while using e-banking.

6) Author Name: Hsun, K.S. Topic: coherence of the financial service sector and
adopts different observational variables to identify innovation capital (training
and R&D density) and process capita l (IT system sufficiency). Date: March, 22,
2016.
This study considers the coherence of the financial service sector and adopts
different observational variables to identify innovation capital (training and R&D
density) and process capita l (IT system sufficiency). The results show that human
capital has a direct impact on both innovation capita l and process capital, which
in turn affect customer capita l; while finally, customer capital affects business
performance. In addition, there is a negative relationship between process capital
and customer capital in the financial service sector. It suggests that in the
financial service sector, customer satisfaction relies on a sufficient degree of
training and R&D density. Intemperate investment on the support of e-banking
operation systems may not be a good answer.

7) Author Name: Laukkanen, P., Sinkkonen, S. & Laukkanen, T. Topic: “Consumer

resistance to internet banking: postpones, opponents and rejecters” Date:
September, 11, 2014.
The purpose of this paper is to further the understanding of innovation resistance
by dividing internet banking non-adopters into three groups based on their
intentions to use the innovation. Thereafter, the aim is to identify how the
resistance differs in these customer groups. This study identifies three groups of
internet banking non-adopters, namely postpones, opponents and rejecters. The
data were collected by conducting an extensive postal survey among the retail
banking customers in Finland who had not adopted internet banking. The
measurement development was based on consumer resistance theory and the
earlier literature on internet banking. Principal component analysis was used to
classify the resistance items into five adoption barriers derived from the earlier
literature. Thereafter, analysis of variance was used to analyze the statistical
differences in resistance to internet banking between the three groups.
Significant differences were identified between the groups explored. The
resistance of the rejecters is much more intense and diverse than that of the
opponents, while the Postpones show only slight resistance. The results also
indicate that psychological.
barriers are even higher determinants of resistance than usage and value, which
are constructs relate d to ease-of-use and usefulness determining acceptance in
the traditional technology acceptance model. Moreover, the findings highlight the
role of self-efficacy in bank customers' risk perceptions to internet banking.

8) Author Name: Routray Topic: “Wireless ATM: A Technological Framework to

M- Banking” Date: December 19, 2012.
The study describes that are becoming enablers for organizations to conduct
business more effectively and efficiently. One of the most effective applications is
mobile banking (mbanking). For any application to gain recognition technological
advancements play a vital role. To make m-banking application a success
bandwidth management is an important issue. The increased flexibility and
mobility feature of wireless ATM and its bandwidth on demand function is
motivating a large number of carriers towards deployment of the WATM
networks. But there are certain issues which are required to be addressed in
WATM. The issues are cost effective planning of network, location management
and handover management. In this paper we have suggested and evaluate d a
technological framework for the m-banking application using wireless ATM which
optimizes the bandwidth usage and provides a n effective handover management.
Simulation results show that the resultant framework is very effective in handling
the bandwidth and the handover issue in wireless ATM and provides an effective
WATM framework model.

9) Author Name: Malhotra, P. & Singh, B. Topic: “An analysis of Internet banking
offerings and its determinants in India”. Date: November 07, 2012.
Stated about this research tells us that the larger banks, banks with younger age,
private ownership, higher expenses for fixed assets, higher deposits and lower
branch intensity evidence a higher probability of adoption of this new technology.
Banks with lower market share also see the Internet banking technology as a
means to increase the market share by attracting more and more customers
through this new channel of delivery. Further, the adoption of Internet banking by
other banks increases the probability that a decision to adopt will be made. An
understanding of the factors affecting this choice is essential both for economists
studying the determinants of growth and for the creators and producers of such
technologies. From this perspective, understanding the factors determining the
adoption of technology becomes highly relevant from the policy point of view.
Moreover, the studies on the adoption of financial innovations are related to
developed markets, e.g. US or European banking markets. Hence, this paper
contributes to the empirical literature on diffusion of financial innovations,
particularly Internet banking, in a developing country.

10) Author Name: Shah & Braganza Topic: “A Survey of Critical Success Factors in
ebanking”, Date: August 18, 2010.
This survey indicates the Critical Success Factors in e- banking and the author
suggest in this article that the organizational factors, which are critical to the
success of e - banking, are investigated. Different pieces of literature report
different factors as key to success and generally based on subjective, perceptual
data. A synthesis of existing literature is a basis for survey questions. The data was
collected from UK based financial sector organizations who are offering their
services on electronic channels, using postal questionnaires. The top factors
found to be most critical for the success in e-banking are: quick responsive
products/services, organizational flexibility, services expansion, systems
integration and enhanced customer service. An important lesson from this
research is that organizations need to view the e-banking initiative as a business-
critical area rather than just a technical issue. They need to give attention to
internal integration, which may include channels, technology and business
process integration, and improving the overall services to their customers.
11) Author Name: Bauer, Malik & Falk Topic: “Measuring the quality of e banking
portals”, Date: July 27, 2010. 33 Downloaded by Vishnu vinay
(vishnuotocare@[Link]) lOMoARcPSD|21851326
This article reviews the measuring the quality of E-Banking portals. In the internet
economy, the business model of web portals has spread rapidly over the last few
years. Despite this, there have been very few scholarly investigations into the
service s and characteristics that transform a web site into a portal as well as into
the dimens ions that determine the customer’s evaluation of the portal’s service
quality. Based on an empirical study in the field of e-banking the authors validate
a measurement model for the construct of web portal quality based on the
following dimensions: security and trust, basic services quality, cross- buying
services quality, added value, transaction support and responsiveness. Findings –
The identified dimensions ca n reasonably be classified into three service
categories: core services, additional services, and problem-solving services.
Originality/value – The knowledge of these dimens ions as major determinants of
consumer’s quality perception in the internet provides banks a promising starting
point for establishing an effective quality management for their ebusinesses