PROJECT REPORT
(Submitted for the Degree of [Link]. Honours in Online Banking under the University of
Calcutta)
TITLE OF THE PROJECT
A SMALL STUDY OF THE ONLINE BANKING SECTOR IN THE INDIAN ECONOMY
AND ITS IMPACT ON THE CUSTOMERS
SUBMITTED BY
Name of the Candidate : HARSH KESHRI
Registration No. : 224-1111-1156-22
C.U. Roll No. : 221224-21-0114
Name of the College : Seth Anandram Jaipuria College
College Roll No. : 4079
SUPERVISED BY
Name of the Supervisor : Prof. Ritwik Halder
Designation : Faculty, Department of Commerce
Name of the College : Seth Anandram Jaipuria College
MONTH & YEAR OF SUBMISSION
JUNE,2025
WHY DID I SELECTED
THIS PROJECT
I selected online banking as the topic for my
project because it is highly relevant in today's digital
era. With the increasing use of smartphones and the
internet, online banking has become an essential part
of everyday life.
It offers convenience, speed, and 24/7 access to
financial services, which has transformed the way
people manage their money. Studying this topic
allows me to understand the benefits, risks, and
future trends of digital finance, which is important
for both personal knowledge and career
opportunities in the banking and finance sector.
BIBLIOGRAPHY
Articles on Online Banking:
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
Secondary Data collected from:
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
History of Online Banking in
India:
[Link]
[Link]
Data for the National and International scenario of online banking in
India: [Link]
Objectives of the Study: -
Objectives of a project tell us why the project has been taken under study. It helps us to
gain a deeper understanding of the topic being explored and to assess its prospects.
The various research objectives of the study are:
To study the internet banking facilities offered by the banks to their
customers.
To study how much internet banking has penetrated the minds of the
customers.
To gain insights about the functioning of internet banking.
To study the benefits that are provided to individuals under internet
banking.
Research Methodology: -
The study focuses on the banking industry in India. The post-liberalization,
privatization, and globalization period has transformed the banking industry.
In particular, the introduction of IT in the banking sector has brought significant
changes to public sector banks, though at a slower pace. In contrast, new private
sector banks and foreign banks operating in India have experienced these changes at
a faster pace, as they are fully computerized from the outset. Many public sector banks
are managing this transformation manually, rather than through IT channels, due to
various internal and external constraints. On the other hand, new private sector banks
and foreign banks
are managing the entire process through e-channels. Compared to public sector banks,
new private sector banks and foreign banks offer a wider range of products and
services.
The study focuses on the Indian banking industry, establishing this sector as its core
universe. Performance is analyzed at the levels of individual banks, bank groups, and
the industry as a whole. Four bank groups have been selected, along with four banks
from each group, for the study. This descriptive and empirical research utilizes both
secondary and primary data to achieve its objectives. For the required analysis,
the Indian banking industry has been categorized into four major bank groups:
Publicand
(SBI Sector Banks
its Associates-7 and Nationalized Banks-19) (26 Banks)
Old Private Sector banks (15 Banks)
New Private Sector banks (07 Banks)
Foreign Banks (32 Banks)
Limitations of the
Study: -
Themajor limitations
A small sampleofsize of respondents is taken for primary data analysis. So,
the study are:
I cannot draw proper inferences about the respondent from this sample size.
I have not used modern statistical tools to analyze the data.
Due to a shortage of time, I have not been able to make a depth study.
I could not collect data from out site of the new market.
This study is based on the prevailing respondents’ satisfaction. But their
satisfaction may change according to time, fashion needs, etc.
Advantages: -
To the Customer:
Anywhere banking, no matter where the customer is in the world. Balance enquiry,
request for services, issuing instructions, etc., from anywhere in the world is
possible.
Anytime Banking- Managing funds in real time and most importantly, 24 hours a day,
7 days a week.
It brings down the “Cost of banking” to the customer over time.
Cash withdrawal from any bank/ATM.
Online purchase of goods and services, including online payment for the same.
To the Banks:
Innovative scheme, address competition, and present the bank as technology-driven
in the banking sector market.
Reduces customer visits to the branch and thereby reduces human intervention.
Inter-branch reconciliation is immediate, thereby reducing the chances of fraud
and misappropriation.
Online banking is an effective medium of promotion of various schemes of the bank,
a marketing tool indeed.
Integrated customer data paves the way for individualized and customized services.
Disadvantages: -
A customer may have to face some risky transactions and fraud.
Failure or interruption of power supply causes to breakdown in e-banking.
Financial loss of heavy income at times of settlement of a higher magnitude.
The cost to be incurred for training the staff may not be profitable.
Customers' Perception of Online Banking and Traditional
Banking
A survey was conducted on online banking in India for the primary data among 55 people
in the age group 16-50 years. The analysis of this survey or data is as follows: -
Q.1. Age of the respondents
Age Group 16-22 23-29 30-36 37-43 44-50
No. of respondents 30 8 2 3 12
Analysis of findings: The age distribution shows that a majority (54.5%) of respondents are
in the 16–22 age group, indicating a predominantly young audience. The 44–50 group
follows with 21.8%, suggesting some senior participation. Middle-aged groups (23–43) show
relatively lower engagement. This points to a youth-centric demographic with limited
engagement from older working professionals in the sector of online banking.
Q.2. Gender of the respondents
Gender Female Male Other
No. of respondents 34 21 0
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Analysis of findings: The data suggests that women are leading in online banking usage,
possibly due to increased digital awareness and financial independence.
Q.3. Place of residence
Residing in Urban Rural
No. of respondents 54 1
Analysis of findings: The data reveals a strong urban dominance, with 98.2% of
respondents residing in urban areas. Only 1.8% are from rural areas, indicating a highly
urban-centric respondent base, relevant for interpreting accessibility and preferences
in digital services like online banking.
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Q.4. In which bank do you have your account?
Banks PNB SBI AXIS ICICI OTHERS
No. of respondents 8 26 18 3 0
Analysis of findings: SBI holds the highest user share at 47.3%, indicating strong public
trust and widespread access. Other Banks follow with 32.7%, while PNB trails at 14.5%.
ICICI accounts for only 2.7%, while Axis has received zero response suggesting a lower
preference or reach among the respondents.
Q.5. Do you think online banking is better than traditional banking?
Preference Yes No
No. of respondents 51 4
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Analysis of findings: The pie chart reveals a strong preference for online banking, with 92.7%
of respondents favouring it over traditional banking. Only 7.3% still prefer traditional methods,
indicating a clear shift toward digital banking among users.
Q.6. Overall, how satisfied are you with the online banking service?
Degree of Satisfaction Very Satisfied Satisfied Dissatisfied
Neutral
No. of respondents 23 25 6 1
Analysis of findings: The pie chart shows that 87.3% of respondents are either satisfied
(45.5%) or very satisfied (41.8%) with online banking services. A small portion is
neutral
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(10.9%), and only 1.8% expressed dissatisfaction, indicating a largely positive user experience
overall.
Q.7. Is the respective online banking platform easy to use?
Preference Yes No
No. of respondents 51 4
Analysis of findings: The graph indicates that a vast majority—92.7% of respondents—
find their online banking platform easy to use, while only 7.3% do not. This reflects a high
level of user-friendliness and accessibility in current digital banking platforms.
Q.8. Do you trust the security of online banking services?
Preference Yes No
No. of respondents 49 6
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Analysis of findings: The pie chart reveals that a vast majority of respondents—89.1%—
trust the security of online banking services, while only 10.9% express distrust. This indicates
strong overall confidence in digital banking platforms among users.
Q.9. How often do you use online banking?
Usage Frequency Daily Weekly Monthly Rarely
No. of respondents 25 12 9 9
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Analysis of findings: The graph shows that 45.5% of respondents use online banking daily,
indicating strong engagement. Weekly users comprise 21.8%, while monthly and rare users are
split at 16.4% each. This reflects a high overall adoption rate, with most users accessing
online banking frequently.
Q.10. What type of transactions do you make in online banking?
Online Banking Check Payment Fund All of the
Functions Balance Transfer above
No. of respondents 25 12 9 9
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Analysis of findings: The pie chart indicates that 60% of users perform all types of
online banking transactions. Payments account for 21.8%, while checking balance and
transferring funds are each at 9.1%. This reflects a strong preference for thoroughly using
online banking, with payments being the most common individual activity.
Q.11. Are you aware of Net Banking Services offered by the banks?
Awareness about the services Yes No
No. of respondents 49 6
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Analysis of findings: The pie chart shows that a significant majority of respondents—89.1%—
are aware of net banking services offered by banks, while only 10.9% are not. This indicates a
high level of digital banking awareness among the surveyed population, suggesting successful
outreach or adoption of online banking platforms. However, the small unaware segment
highlights a need for continued education or support, especially for digitally less-inclined users.
Q.12. Are you aware of the methods which can be undertaken to make any kind of fraud?
Awareness about fraud Yes No
No. of respondents 42 13
Analysis of findings: The bar chart reveals that 76.4% of respondents are aware of methods
that can be used to commit fraud, indicating a relatively high level of vigilance or exposure
to fraud-related information. However, 23.6% remain unaware, which points to a
potential vulnerability. This highlights the need for further awareness campaigns and training
to ensure broader understanding and prevention of fraudulent activities.
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Q.13. Does your bank educate you about the net banking services being offered?
Bank awareness programs Yes No
No. of respondents 32 23
Analysis of findings: The chart shows that 58.2% of respondents feel their bank educates them
about net banking services, while 41.8% believe they are not adequately informed. This
indicates a moderate communication gap, highlighting the need for banks to strengthen
awareness initiatives and improve customer outreach on digital banking features.
Q.14. What benefits do you see in Internet Banking?
Benefits Convenience Speed Transparency Time
No. of respondents 28 13 3 11
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Analysis of findings: The Majority of users (50.9%) view convenience as the top benefit
of internet banking, followed by speed (23.6%) and time-saving (20%), indicating a
strong preference for efficiency. Transparency (5.5%) is the least prioritized, suggesting
it's less recognized as a distinct advantage.
Q.15. Would you prefer using net banking instead of visiting your bank every now and
then?
Preference for Net Banking Yes No
No. of respondents 51 4
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Analysis of findings: A significant 92.7% of respondents prefer using net banking over
visiting the bank in person, indicating a strong user inclination toward digital convenience.
Only 7.3% still favour in-person visits, reflecting minimal resistance to digital adoption.
Q.16. What are the disadvantages of online banking?
Disadvantages Overall Lack of Security No
Difficulty Assistance Concerns disadvantage
No. of respondents 7 11 25 12
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Analysis of findings: Security concerns (45.5%) are the most cited disadvantage of
online banking, indicating trust remains a major issue. 21.8% of respondents
reported no disadvantage, while difficulty using the system (12.7%) and lack of assistance
(20%) highlight usability and support gaps.
Q.17. Have you started to use net banking more after demonetization?
Usage of Net Banking after Yes No Maybe
Demonetization
No. of respondents 37 8 10
Analysis of findings: A significant 67.3% of respondents reported increased use of net
banking post-demonetization, indicating a clear digital shift. 18.2% were uncertain, while
only 14.5% did not increase usage, reflecting minimal resistance to digital adoption.
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CHAPTER: 4
Conclusion and Recommendation
1.1 Conclusion on the study: -
The study on Internet Banking highlights the profound impact of information technology
on the Indian banking sector. IT has empowered both customers and financial
institutions, enabling informed decision-making and significantly transforming how banking
services are delivered. Through digital platforms, banks are now able to offer innovative
products, operate more efficiently, expand their geographical reach, and compete on a
global scale. This evolution has led to a more productive and customer-centric banking
industry, delivering enhanced service quality and value.
Internet banking, or e-banking, refers to the provision of banking services and products
through electronic channels such as the internet, mobile phones, and telephones. While
the scope of e-banking is still evolving, it has already facilitated faster, more efficient
transactions and improved customer accessibility. However, the rise of digital banking has
also introduced new regulatory and supervisory challenges. In response, the Government of
India enacted the Information Technology Act, 2000, granting legal recognition to
electronic transactions. Simultaneously, the Reserve Bank of India (RBI) has issued
regulatory guidelines to manage risks associated with computer and telecommunication
systems, emphasizing robust internal controls and cybersecurity standards.
Findings from the primary survey conducted among 55 respondents further underscore
the growing reliance on and satisfaction with online banking. A significant majority
(92.7%)
prefer online banking over traditional banking, citing convenience, speed, and time-saving
as key benefits. Additionally, 67.3% reported increased usage of net banking
post- demonetization, indicating a lasting digital shift. While satisfaction levels remain high
(87.3% satisfied or very satisfied), concerns about security and lack of assistance persist,
pointing to areas that require attention from both banks and regulators.
In conclusion, e-banking is no longer an optional service but a core pillar of modern banking.
With continued investment in technology, security, and customer education—supported by
proactive regulation from RBI and the Government of India—online banking in India
is poised for sustained growth, broader inclusion, and greater innovation in the years ahead.
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1.2 Recommendations for the study: -
Based on the analysis and findings of the study, the following recommendations are proposed
to enhance the effectiveness, reach, and security of internet banking services in India:
1. Strengthen Cybersecurity Measures: Given that 45.5% of respondents cited
security concerns, banks must invest more in robust encryption,
two-factor authentication, and fraud detection systems to protect customer data
and transactions.
2. Enhance Customer Education and Awareness: With 41.8% of users feeling
inadequately informed, banks should launch awareness campaigns and
provide regular workshops, tutorials, and helpdesk support to educate users
about services, security practices, and fraud prevention.
3. Improve Support and Assistance Channels: As 20% of respondents mentioned
lack of assistance as a disadvantage, banks should ensure 24/7 multilingual
customer support via chatbots, helplines, and mobile apps to resolve issues
promptly.
4. Promote E-Banking in Rural Areas: With only 1.8% of respondents from rural
regions, focused outreach programs are necessary to expand digital banking
literacy, access, and infrastructure in underserved areas.
5. Regular Feedback and Usability Enhancements: Periodic user experience surveys
should be conducted to simplify interfaces, optimize navigation, and ensure
platforms remain user-friendly for people of all age groups and digital literacy
levels.
6. Incentivize Digital Transactions: Banks should offer cashback, reward points, or
reduced charges for customers who actively use net banking, encouraging
digital migration and loyalty.
7. Expand Financial Inclusion Initiatives: Integrate internet banking with government
schemes and financial inclusion programs to bring unbanked and
underbanked populations into the digital economy.
8. Strengthen Regulatory Oversight: RBI should continue updating its regulatory
frameworks in alignment with evolving technological threats and
international best practices to maintain user trust and operational safety.
9. Collaborate with FinTech for Innovation: Banks can partner with fintech startups to
offer enhanced features like smart budgeting, expense tracking, Page
and |AI-
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powered financial advice within internet banking platforms.