JASMIN'S BLACK BOOK PROJECT (1).docx

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COMPARATIVE STUDY ON E-BANKING OF ICICI

AND HDFC BANK

A Project submitted to

University of Mumbai for Partial Completion of the Degree

Of Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

(SEMESTER - VI)

By

Jasmin John Nadar

Under the guidance of

Dr. Priyanka Mohan

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COMPARATIVE STUDY ON E-BANKING OF ICICI

AND HDFC BANK

A Project submitted to

University of Mumbai for Partial Completion of the Degree

Of Bachelor in

Of Bachelor in Commerce (Accountin

Commerce (Accounting and Finance)

g and Finance)

Under the Faculty of Commerce

(SEMESTER - VI)

By

Jasmin John Nadar

Under the guidance of

Dr. Priyanka Mohan

SIES (Nerul) College of Arts, Science & Commerce, Plot 1-C, Sector V, SIES (Nerul) College of Arts, Science & Commerce, Plot 1-C, Sector V,

Nerul, Navi Mumbai - 400706 Nerul, Navi Mumbai - 400706

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March 2019 March 2019

Certificate

This is to certify that

This is to certify that Miss Jasmin John NadarMiss Jasmin John Nadar has worked and duly completed hishas worked and duly completed his Project Work for the degree of Bachelor of Commerce (Accounting & Finance) under Project Work for the degree of Bachelor of Commerce (Accounting & Finance) under the Faculty of Commerce and his project is entitled

the Faculty of Commerce and his project is entitled“COMPARATIV“COMPARATIVE STUDY E STUDY ONON E-BANKING

E-BANKING OF ICICI OF ICICI AND HDFC AND HDFC BANK BANK ”” under my supervision.under my supervision.

I further certify that the entire work has been done by the learner under my guidance I further certify that the entire work has been done by the learner under my guidance and that no part of it has been submitted previously for any Degree or Diploma of any and that no part of it has been submitted previously for any Degree or Diploma of any University.

University.

It is his own work and facts reported by his personal findings and investigation. It is his own work and facts reported by his personal findings and investigation.

Name and Signature of Name and Signature of

Guiding Teacher Guiding Teacher Date of Submission: Date of Submission: Seal of the Seal of the College College

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Declaration

I

I the

the undersigned

undersigned Miss

Miss here

here by,

by, declare that

declare that the

the work

work embodied

embodied in

in this

this

project

project work

work titled

titled ““

COMPARATIVE STUDY ON E-BANKING OF

ICICI AND HDFC BANK

”, forms my own contribution to the research

work carried out under the guidance of

Dr. Priyanka Mohan

is a result

of my own research work and has not been previously submitted to any

other University for any other Degree/ Diploma to this or any other

University.

Wherever reference has been made to previous works of others, it has

been clearly

been clearly indicated as

indicated as such and i

such and included i

ncluded in the bib

n the bibliograph

liography.

y.

I, here by further declare that all information of this document has been

obtained and presented in accordance with academic rules and ethical

conduct.

Name and Signature of the learner

Certified by

Name and signature of the Guiding Teacher

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Acknowledgment

To list who all have helped me is

To list who all have helped me is difficul

difficult because they are so numerous

t because they are so numerous

and the depth is so enormous.

I would like to

I would like to acknowledg

acknowledge the

e the followi

following as being idealistic channels

ng as being idealistic channels

and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this

chance to do this project.

project.

I would like to thank my

I would like to thank my Principal,

Principal,

Dr. Milind Vaidya

for providing the

necessary facilities required for completion of this project.

I would also like to express my sincere gratitude towards my Coordinator

& project guide

Dr. Priyanka Mohan

whose guidance and care made the

project suc

project successful.

cessful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or

indirectly helped me in the completion of the project especially my

Parents and Peers who supported me throughout my project.

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Index

Chapter

Chapter No. No. Topic Topic Page Page no.no. 1. Introduction

1. Introduction

1.1 Executive Summary 1.1 Executive Summary

2.

2. Research Research MethodologyMethodology

2.1 Objective of Study 2.1 Objective of Study 2.2 Scope of Study 2.2 Scope of Study

2.3 Limitations of the Study 2.3 Limitations of the Study 2.4 Type of Research 2.4 Type of Research 2.5 Research Method 2.5 Research Method 2.6 Type of Data 2.6 Type of Data 2.7 Sample Size 2.7 Sample Size 2.8 Sample Method 2.8 Sample Method

2.9 Data collection Method 2.9 Data collection Method

3.

3. Literature Literature ReviewReview

3.1 Company Profile 3.1 Company Profile 3.2 SWOT Analysis 3.2 SWOT Analysis

4.

4. Data Data analysis analysis , , interpretinterpretation ation & & PresentatPresentationion 5.

5. Conclusions Conclusions & & SuggestionsSuggestions

5.1 Conclusions 5.1 Conclusions 5.2 Findings 5.2 Findings 5.3 Suggestions 5.3 Suggestions 6. Appendix 6. Appendix 7. Bibliography 7. Bibliography

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Chapter - 1

Introduction

EXECUTIVE SUMMARY

While financial institutions took steps to implement E-banking services in the While financial institutions took steps to implement E-banking services in the mid-1990s, more consumers were hesitant to conduct financial transactions over the web. 1990s, more consumers were hesitant to conduct financial transactions over the web. It took widespread adoption of electronic commerce, based on trailblazing companies It took widespread adoption of electronic commerce, based on trailblazing companies such as America Online, Amazon.com and eBay, to make the idea of paying for items such as America Online, Amazon.com and eBay, to make the idea of paying for items online widespread. By 2000, 80 percent of U.S. banks offered e-banking. Customer online widespread. By 2000, 80 percent of U.S. banks offered e-banking. Customer use grew slowly. At Bank of America, for example, it took 10 years to acquire 2 use grew slowly. At Bank of America, for example, it took 10 years to acquire 2 million e-banking customers. However, a significant cultural change took place after million e-banking customers. However, a significant cultural change took place after the Y2K scare ended. In 2001, Bank of America became the first bank to top 3 million the Y2K scare ended. In 2001, Bank of America became the first bank to top 3 million online banking customers, more than 20 percent of its customer base. In comparison, online banking customers, more than 20 percent of its customer base. In comparison, larger national institutions, such as Citigroup claimed 2.2 million online relationships larger national institutions, such as Citigroup claimed 2.2 million online relationships globally, while J.P. Morgan Chase estimated it had over 750,000 online banking globally, while J.P. Morgan Chase estimated it had over 750,000 online banking customers. Wells Fargo had 2.5 million online banking customers, including small customers. Wells Fargo had 2.5 million online banking customers, including small businesses.

businesses. Online Online customers customers proved proved more more loyal loyal and and profitable profitable than than regularregular customers. In October 2001, Bank of America customers executed a record 3.1 customers. In October 2001, Bank of America customers executed a record 3.1 million electronic bill payments, totaling more than $1 billion. In 2009, a report by million electronic bill payments, totaling more than $1 billion. In 2009, a report by Gartner Group estimated that 47 %

Gartner Group estimated that 47 % of U.S. of U.S. adults and 30 % adults and 30 % in the United Kingdomin the United Kingdom bank online.

bank online.

The first online banking service in United States was introduced, in October 1994. The first online banking service in United States was introduced, in October 1994. The service was developed by Stanford Federal Credit Union, which is a financial The service was developed by Stanford Federal Credit Union, which is a financial institution. The online banking

institution. The online banking services are becoming services are becoming more prevalent due more prevalent due to the well-to the well-developed systems. Though there are pros and cons of electronic cash, it has become a developed systems. Though there are pros and cons of electronic cash, it has become a revolution that is enhancing the banking sector

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E-BANKING

MEANING:-Internet banking is the term used for new age banking system. MEANING:-Internet

Internet banking is the term used for new age banking system. Internet

banking

banking is

is also

also called

called a

a online

online banking

banking and

and it

it is

is an

an outgrow

outgrowth

th of

of PC

PC

banking.

banking. Internet

Internet banking

banking uses

uses the

the internet

internet as

as the

the delivery

delivery channel

channel by

by

which to conduct banking activity, for example, transferring funds,

paying

paying bills,

bills, viewing

viewing checking

checking and

and savings

savings account

account balances,

balances, paying

paying

mortgages and purchasing financial instruments and certificates of

deposits (Haque et al, 2009). Internet banking is a result of explored

possibil

possibility

ity to

to use

use internet

internet application

application in

in one

one of

of the

the various

various domains

domains of

of

commerce. It is difficult to infer whether the internet tool has been

applied for convenience of bankers or for

applied for convenience of bankers or for the customers’ convenience.

the customers’ convenience.

But ultimately it contributes in increasing the efficiency of the banking

operation as well providing more convenience to customers. Without

even interacting with the bankers, customers transact from one corner of

the country to another corner. There are many advantages of online

Banking. It is convenient, it isn’t bound by

operational timings

operational timings, there

, there are

are

no geographical barriers and the services can be offered at a minuscule

cost (IAMAI’s,

cost (IAMAI’s, 2006). Electronic banking has experienced explosive

2006). Electronic banking has experienced explosive

growth and has transformed traditional practices in banking (Gonzalez et

al., 2008). Private Banks in India were the first to implement internet

banking services in the banking industr

banking services in the banking industry. Private Banks, due to late

y. Private Banks, due to late entry

entry

into the industry, understood that the establishing network in remote

corners of the country is a very difficult task. It was clear to them that the

only way to stay connected to the customers at any place and at anytime

is through internet applications. They took the internet applications as

aweapon of competitive advantage to corner the great monoliths like

State Bank of India, Indian Bank etc. Private Banks are pioneer in India

to explore the versatility of internet applications indelivering services to

customers. As per prediction of Broadie et al(2007)the e- banking is

leading to a paradigm shift in marketing practices resulting in high

performan

performance

ce in

in the

the banking

banking industry

industry.

. Delivery

Delivery of

of service

service in

in bankingc

bankingcan

an

be

be provided

provided efficiently

efficiently only

only when

when the

the back

back ground

ground operations

operations are

are

efficient. An efficient back ground operation can be conducted only when

it is integrated by an electronic system. Then components like data,

hardware, software, network and people are the essential elements of the

system. Banking customers get satisfied with the system when it provides

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them maximum convenience and comfort while transacting with the

bank.

bank. Internet

Internet enabled

enabled electronic

electronic system

system facilitate

facilitate the

the operation

operation to

to fetch

fetch

these result. An in-depth analysis would help to understand that internet

enabled electronic bank system differentiates from traditional banking

operation through faster delivery of information from the customer and

service provider. Additionally, it has to be noted that the banking

operations does not transfer physical currencies instead it transfer the

information about the value for currencies. I-banks enable transfer of

information more

information more swiftly on-

swiftly on- line. (

line. ( Salawu

Salawu et.al, 2007).

et.al, 2007). In

In service

service

organizations like banks, information flows more than physical items. In

the commercial world, especially in most advanced societies today,

money is rather carried in information storage medium such as cheques,

credit cards and electronic means that in its pure cash form. According to

christopher et al (2006), E banking has become an important channel to

sell the products and services and is perceived to be necessity in order to

stay profitable in successful. The perception is the formed as a result of

interpreting the experience. There is a growing interest in understanding

the users’ experience (Hiltunen et al.,2002 .); as it is observed as a larger

concept than user satisfaction. From this perspective ,assessing the user

experience is essential for many technology products and services

(Wilson & Sasse, 2004) Customers have started perceiving the services of

bank

bank throug

through

h internet a

internet as

s a

a prime

prime attractive

attractive feature

feature than

than any

any other

other prime

prime

product feat

product features of the bank. Cus

ures of the bank. Customers have starte

tomers have started evaluating the bank

d evaluating the bankss

based on the conveni

based on the convenience and comforts it prov

ence and comforts it provides to them. Bankers have

ides to them. Bankers have

started developing various product features and services using internet

applications.

Definition of

E-Banking:-E-banking is defined as the automated delivery of new and traditional banking E-banking is defined as the automated delivery of new and traditional banking products

products and and services services directly directly to to customers customers through through electronic, electronic, interactiveinteractive communication channels. E-banking includes the systems that enable financial communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private or obtain information on financial products and services through a public or private network, including the Internet.

network, including the Internet.

Customers access e-banking services using an intelligent electronic device, such as a Customers access e-banking services using an intelligent electronic device, such as a personal

personal computer computer (PC), (PC), personal personal digital digital assistant assistant (PDA), (PDA), automated automated teller teller machinemachine (ATM), or Touch Tone telephone. While the risks and controls are similar for the (ATM), or Touch Tone telephone. While the risks and controls are similar for the

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various e-banking access channels, this booklet focuses specifically on Internet-based various e-banking access channels, this booklet focuses specifically on Internet-based services due to the Internet's widely accessible public network. Accordingly, this services due to the Internet's widely accessible public network. Accordingly, this booklet

booklet begins begins with with a a discussion discussion of of the the two two primary primary types types of of Internet Internet websites:websites: informational and transactional.

informational and transactional.

E Banking is your personal banking service on the Internet, protected with bank E Banking is your personal banking service on the Internet, protected with bank identifiers. It is available anywhere, anytime. E Banking allows you to pay invoices to identifiers. It is available anywhere, anytime. E Banking allows you to pay invoices to Finnish and foreign recipients easily and securely. You can also check your account Finnish and foreign recipients easily and securely. You can also check your account balances

balances and trand transactions. ansactions. You can You can order order a new a new card, card, withdraw a withdraw a loan loan granted granted to to youyou and make mutual fund subscriptions .You access E Banking services by obtaining and make mutual fund subscriptions .You access E Banking services by obtaining bank

bank identifiers. identifiers. E E Banking Banking as as such such is is free free of of charge charge but but commissions commissions and and fees fees inin accordance with the service tariff will be levied on orders and other transactions accordance with the service tariff will be levied on orders and other transactions carried out through e Banking. E Banking allows you to pay invoices to finish and carried out through e Banking. E Banking allows you to pay invoices to finish and foreign recipients easily and securely. You can also check your account balances and foreign recipients easily and securely. You can also check your account balances and transactions.

transactions.

You can order a new card, withdraw a loan granted to you and make mutual fund You can order a new card, withdraw a loan granted to you and make mutual fund subscriptions. You access Banking services by obtaining bank identifiers. subscriptions. You access Banking services by obtaining bank identifiers. E-Banking as such is free of charge but commissions and fees in accordance with the Banking as such is free of charge but commissions and fees in accordance with the service tariff will be levied on orders and other transactions carried out through service tariff will be levied on orders and other transactions carried out through E-Banking.

Banking.

The last decade has witnessed a drastic change in the economic and banking The last decade has witnessed a drastic change in the economic and banking environment all over the world. With the economic and financial sector reforms environment all over the world. With the economic and financial sector reforms introduced in the country since early 1990s, the operating environment for banks in introduced in the country since early 1990s, the operating environment for banks in India also undergone a rapid change. The process of deregulation and reforms in the India also undergone a rapid change. The process of deregulation and reforms in the Indian banking system resulted in the creation of an efficient and competitive banking Indian banking system resulted in the creation of an efficient and competitive banking system. Deregulation has opened up new vistas for banks to extend their revenues by system. Deregulation has opened up new vistas for banks to extend their revenues by diversifying into universal banking, investment banking, bank assurance, mortgage diversifying into universal banking, investment banking, bank assurance, mortgage financing, depository services, securitization, personal banking etc. At the same time, financing, depository services, securitization, personal banking etc. At the same time, liberalization has opened the turf to new players and brought greater competition liberalization has opened the turf to new players and brought greater competition among banks. To survive the competition, the information & communication among banks. To survive the competition, the information & communication technology significantly contributed to the growth and profit of financial institutions technology significantly contributed to the growth and profit of financial institutions

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worldwide. Technology is the key to move towards providing integrated banking worldwide. Technology is the key to move towards providing integrated banking services to customers. Indian banks are late starter in the adoption of technology for services to customers. Indian banks are late starter in the adoption of technology for automation of processes and the integrated banking services. But with the global automation of processes and the integrated banking services. But with the global adoption of technology, Indian banking is also at the threshold of paradigm shift due adoption of technology, Indian banking is also at the threshold of paradigm shift due to the latest changes. There are various factors which have played important role in to the latest changes. There are various factors which have played important role in the Indian banking sector for adoption of technology. Firstly, the economic reforms the Indian banking sector for adoption of technology. Firstly, the economic reforms introduced by the government almost fifteen years back which resulted in opening up introduced by the government almost fifteen years back which resulted in opening up of new vistas for banks outside the country. E-banking is defined as the automated of new vistas for banks outside the country. E-banking is defined as the automated delivery of new and traditional banking products and services directly to the delivery of new and traditional banking products and services directly to the customers through multiple electronic means ADCs like ATM, IB, MB, etc.

customers through multiple electronic means ADCs like ATM, IB, MB, etc.

E-banking was firstly introduced in India by the ICICI around 1996. E-banking E-banking was firstly introduced in India by the ICICI around 1996. E-banking includes the systems that enable financial institutions, customers and individuals or includes the systems that enable financial institutions, customers and individuals or businesses

businesses to to access access accounts, accounts, transact transact business business or or obtain obtain information information of of financialfinancial products and

products and services services through through a public a public or privator private network, e network, including including the Intethe Internet. Thernet. The E-banking revolution provides new opportunities like Payment and Settlement E-banking revolution provides new opportunities like Payment and Settlement Systems.

Systems.

E-E- banking creates ‘huge banking creates ‘huge world of customer cworld of customer convenience’onvenience’ With continuing technology With continuing technology evolution and changing demographic preferences banks all over the world keep evolution and changing demographic preferences banks all over the world keep finding new channels to put their money on . E-banking improves the internal finding new channels to put their money on . E-banking improves the internal working of a bank and ensures customer satisfaction. It facilitates market penetration working of a bank and ensures customer satisfaction. It facilitates market penetration and growth in customer base without any geographical constraints or time-based and growth in customer base without any geographical constraints or time-based limitations. Customers are influenced to use electronic channels to conduct their limitations. Customers are influenced to use electronic channels to conduct their banking

banking transactions transactions due due to to the the benefits benefits gained gained from from E-banking E-banking services. services. They They areare tremendous reduction in transaction costs, world over delivery of banking services, tremendous reduction in transaction costs, world over delivery of banking services, real-time information, real-time transaction, absence of geographical and time real-time information, real-time transaction, absence of geographical and time constraints, better employee-customer social relationship, publicity of innovative and constraints, better employee-customer social relationship, publicity of innovative and globally accepted products/services, confidence of customers in the low-cost and globally accepted products/services, confidence of customers in the low-cost and cost-effective

e-effective e-channels, conversion of banks from traditional (‘brick and mortar’) to echannels, conversion of banks from traditional (‘brick and mortar’) to e

-- banks(‘click and portal’),

banks(‘click and portal’), better quality service, better quality service, increased speed, iincreased speed, increased efficiencncreased efficienc y,y,

touch-screen technology, convenient and cheaper electronic channels, easy, fast, touch-screen technology, convenient and cheaper electronic channels, easy, fast, efficient and secured financial services at reasonable costs, single window servicing, efficient and secured financial services at reasonable costs, single window servicing, convenience for customers at their options to transact from anywhere, at anytime and convenience for customers at their options to transact from anywhere, at anytime and

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using any delivery channel that are suitable for them, minimizing personal visit to the using any delivery channel that are suitable for them, minimizing personal visit to the branch

branch premises premises and and more more suitability suitability for for changing changing demographic demographic preferencespreferences, , etc.etc. Thus, customers are embracing all the above benefits of E-banking. E-banking Thus, customers are embracing all the above benefits of E-banking. E-banking enables banks to provide good, superior, very high quality customer service as well as enables banks to provide good, superior, very high quality customer service as well as to offer a broad range of products and/or services to customers. It maximizes returns, to offer a broad range of products and/or services to customers. It maximizes returns, acquires more customers and builds the customer product ratio, extends their reach acquires more customers and builds the customer product ratio, extends their reach

and increases their contact with multi platform consumers and ensures one’s privacy and increases their contact with multi platform consumers and ensures one’s privacy

and trust. These features enhance customer satisfaction. When the customers adopt and trust. These features enhance customer satisfaction. When the customers adopt E- banking the

banking they have incy have increased exreased expectations abpectations about service out service and suppoand support to rt to enable enable them tothem to banking

banking on-line. on-line. Thus, EThus, E-banking -banking services services have have become become the vthe virtual irtual main smain street of treet of thethe world. The Internet has created a new economic ecosystem. On October 18, 1995 world. The Internet has created a new economic ecosystem. On October 18, 1995

Security First Network Bank opened to the public as world’s

Security First Network Bank opened to the public as world’s first Internet bank. ICIfirst Internet bank. ICICICI bank

bank introduced introduced IB IB first first in in India. India. Advent Advent and and adoption adoption of of Internet Internet by by the the industriesindustries have removed the constraints of time, distance and communication making globe truly have removed the constraints of time, distance and communication making globe truly a small village. Financial sector is no exception. Numerous factors such as a small village. Financial sector is no exception. Numerous factors such as competitive cost, customer service, increase in education and income level of competitive cost, customer service, increase in education and income level of customers, cheapness, convenience speed, security, accessibility at anytime and at customers, cheapness, convenience speed, security, accessibility at anytime and at anywhere in the world, etc. influence banks to evaluate their technology and assess anywhere in the world, etc. influence banks to evaluate their technology and assess their electronic commerce and IB strategies. IB is a powerful technological innovation their electronic commerce and IB strategies. IB is a powerful technological innovation

which has the power to increase not only customer satisfaction but also the bank’s which has the power to increase not only customer satisfaction but also the bank’s

profitability.

profitability. It It holds holds the the potential potential to to drive drive the the future future of of banking. banking. It It provides provides variousvarious types of new innovative products and /or services to customers like account enquiry, types of new innovative products and /or services to customers like account enquiry, fund transfer, payment of utility bills, etc. It increases operational efficiencies and fund transfer, payment of utility bills, etc. It increases operational efficiencies and reduces costs. Online banking plays a very important role in capital market reduces costs. Online banking plays a very important role in capital market transactions too.

transactions too.

The various payment and settlement systems through IB in Indian banking system are The various payment and settlement systems through IB in Indian banking system are MICR, Electronic Clearing Service (ECS), EFT, Centralised Funds Message Service MICR, Electronic Clearing Service (ECS), EFT, Centralised Funds Message Service (CFMS), National Deferred System (NDS), INFINET, RTGS, etc. Out of various (CFMS), National Deferred System (NDS), INFINET, RTGS, etc. Out of various ADCs, the IB is emerging as a most cost effective and convenient and a delightful ADCs, the IB is emerging as a most cost effective and convenient and a delightful channel to the banks as well as customers due to its inherent advantages.

channel to the banks as well as customers due to its inherent advantages. ElectronicElectronic

banking, also known

banking, also known as electronic fundas electronic funds transfer (EFT), is simpls transfer (EFT), is simply the use of electronicy the use of electronic

means to transfer funds directly from one account to another, rather than by cheque or

cash. You can use electronic funds transfer to. Directly deposit your pay check into

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your bank or credit union bank account. Withdraw cash from your bank account from

an ATM machine with a personal identification number (PIN), at your convenience.

Instruct your bank or credit union to mechanically pay few monthly bills from your

account, such as your auto loan or your mortgage payment. Have the bank or credit

union transfer funds monthly from your bank account to your mutual fund account.

Have your government social security benefits check or your tax refund deposited

directly into your bank account. Buy groceries, gasoline and other purchases at the

point-of-sale,

point-of-sale, using using a a check check card card rather rather than than cash, cash, credit credit or or a a personal personal check. check. Use Use aa

smart card with a prepaid amount of money embedded in it to be used rather than cash

at a pay phone, expressway road toll, or on college campuses at the library’s

photocopy

photocopy machine machine or or bookstores. bookstores. Use Use your your pc pc and and private private finance finance software software toto

coordinate your total personal monetary management process, integrating data and

activities related to your income, spending, saving, investing, recordkeeping,

bill- paying and taxes, alongsi

paying and taxes, alongside basic monetary analde basic monetary analysis and decision making.ysis and decision making.

HISTORY OF E - BANKING IN INDIA

In India, since 1997, when the ICICI Bank first offered internet banking services, today, In India, since 1997, when the ICICI Bank first offered internet banking services, today, most new-generation banks offer the same to their customers. In fact, all major banks most new-generation banks offer the same to their customers. In fact, all major banks provide

provide e-bankine-banking g serviceservices s to to their their customercustomer.. India is still in the early stages of E-India is still in the early stages of

E- banking

banking growth growth and and development. development. Competition Competition and and changes changes in in technology technology andand

lifestyle in the last five years have changed the face of banking. The changes that have

taken place impose on banks tough standards of competition and compliance. The

issue here is

issue here is – – ‘Where does India stand in the scheme of E‘Where does India stand in the scheme of E-- banking.’ banking.’ EE-banking is-banking is

likely to bring a host of opportunities as well as unprecedented risks to the

fundamental nature of banking in India.

The impact of E- Banking in India is not yet apparent. Many global research

companies believe that E-banking adoption in India in the near future would be slow

compared to other major Asian countries. Indian E-banking is still nascent, although it

is fast becoming a strategic necessity for most commercial banks, as competition

increases from private banks and non banking financial institutions. Despite the global

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economic challenges facing the IT software and services sector, the outlook for the

Indian industry remains optimistic.

The Reserve Bank of India has also set up a “Working Group on E

The Reserve Bank of India has also set up a “Working Group on E-banking to-banking to

examine different aspects of E-banking. The group focused on three major areas of

E-banking i.e. (1) Technology and Security issues (2) Legal issues and (3) Regulatory

and Supervisory issues. RBI has accepted the guidelines of the group and they provide

a good insight into the security requirements of E-banking.

The importance of the impact of technology and information security cannot be

doubted. Technological developments have been one of the key drivers of the global

economy and represent an instrument that if exploited well can boost the efficiency

and competitivity of the banking sector. However, the rapid growth of the Internet has

introduced a completely new level of security related problems. The problem here is

that since the Internet is not a regulated technology and it is readily accessible to

millions of people, there will always be people who want to use it to make illicit

gains. The security issue can be addressed at three levels. The first is the security of

customer information as it is sent from the customer’s PC to the Web server. The

second is the security of the environment in which the Internet banking server and

customer information database reside. Third, security measures must be in place to

prevent un

prevent unauthorized authorized users from users from attempting to attempting to long intlong into the o the online bankonline banking sectioing section ofn of

the website.

SERVICES

PROVIDED BY INTERNET BANKING PROVIDED BY INTERNET BANKING

RETAIL BANKING: The Retail banking application is an integration of several RETAIL BANKING: The Retail banking application is an integration of several functional

functional

areas, and enables customers to: areas, and enables customers to:

Issue Demand Drafts online Issue Demand Drafts online

Transfer funds to own and third party accounts Transfer funds to own and third party accounts

Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature Generate account statements

Generate account statements Setup Standing Instructions Setup Standing Instructions

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Configure profile settings Configure profile settings

Use e-Tax for online tax payment Use e-Tax for online tax payment Use e-Pay for automatic bill payments Use e-Pay for automatic bill payments

Interface with merchants for railway and airline reservations Interface with merchants for railway and airline reservations Avail DEMAT and IPO services

Avail DEMAT and IPO services

CORPORATE BANKING: The Online SBI corporate banking application provides CORPORATE BANKING: The Online SBI corporate banking application provides features to administer and manage corporate accounts online. The corporate module features to administer and manage corporate accounts online. The corporate module provides roles such

provides roles such as Regulator, Admin, Up loader, Transaction Makas Regulator, Admin, Up loader, Transaction Maker, Authorizer,er, Authorizer, and Auditor. These roles have access to the following functions:

and Auditor. These roles have access to the following functions:

Manage users, define rights and transaction rules on corporate accounts Manage users, define rights and transaction rules on corporate accounts Access accounts in several branches with a single sign-on mechanism Access accounts in several branches with a single sign-on mechanism

Upload files to make bulk transactions to third parties, supplier, vendor and tax Upload files to make bulk transactions to third parties, supplier, vendor and tax collection

collection authorities. authorities.

Use online transactional features such as fund transfer to own accounts, third party Use online transactional features such as fund transfer to own accounts, third party payments, and draft issues

payments, and draft issues Make

Make bill payments bill payments over the over the Internet.Internet.

Authorize, modify, reschedule and cancel transactions, based on rights assigned to Authorize, modify, reschedule and cancel transactions, based on rights assigned to the user

the user

Generate account statement Generate account statement

Enquire on transaction details or current balance Enquire on transaction details or current balance VALUE ADDED SERVICES

VALUE ADDED SERVICES Tax

Tax payments to central payments to central and state governments through site and state governments through site to site integration.to site integration. Supply Chain Finance ( e-VFS- Electronic Vendor Finance Scheme)

Supply Chain Finance ( e-VFS- Electronic Vendor Finance Scheme) Direct Debit Facility

Direct Debit Facility

E Collection Facilities for: E Collection Facilities for: Core Banking Transactions Core Banking Transactions

Internet Bank transactions for incoming RTGS/NEFT Transactions Internet Bank transactions for incoming RTGS/NEFT Transactions Internet banking transactions for SBI and associate banks

Internet banking transactions for SBI and associate banks

Debit facility where suppliers can directly debit their customer s account through Debit facility where suppliers can directly debit their customer s account through

internet ‟ internet ‟

banking banking

PRODUCTS & SERVICES PRODUCTS & SERVICES

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E-Ticketing E-Ticketing SBI E-Tax SBI E-Tax Bill Payment Bill Payment RTGS/NEFT RTGS/NEFT E-Payment E-Payment Fund Transfer Fund Transfer

Third Party Transfer Third Party Transfer Demand Draft

Demand Draft

Cheque Book Request Cheque Book Request Account Opening Request Account Opening Request Account Statement

Account Statement Transaction Enquiry Transaction Enquiry

Demat Account Statement Demat Account Statement Donation

Donation

E-TICKETING E-TICKETING::

You can book your railway, air and bus tickets online through Online SBI. To book You can book your railway, air and bus tickets online through Online SBI. To book your train ticket, just log on to irctc.co.in and create an ID there at if you do not have your train ticket, just log on to irctc.co.in and create an ID there at if you do not have one. Submit your travel plan and book the ticket(s)-either i-ticket (where the delivery one. Submit your travel plan and book the ticket(s)-either i-ticket (where the delivery of tickets will be made at your address) or E-tickets (wherein after successful payment of tickets will be made at your address) or E-tickets (wherein after successful payment transactions, an e-ticket is generated which can be printed any time. For an e-ticket, transactions, an e-ticket is generated which can be printed any time. For an e-ticket, the details of photo identity card will required to be filled in) and select State Bank of the details of photo identity card will required to be filled in) and select State Bank of India in the payment options. You will be redirected to Internet Banking site of SBI India in the payment options. You will be redirected to Internet Banking site of SBI (www.onlinesbi.com). After submitting the respective ID and password, you can (www.onlinesbi.com). After submitting the respective ID and password, you can select your account. After a successful debit, Railways will generate the ticket. select your account. After a successful debit, Railways will generate the ticket. E-ticket can be printed by you whereas the i-E-ticket will be dispatched by IRCTC at the ticket can be printed by you whereas the i-ticket will be dispatched by IRCTC at the given address. Service charges @ Rs.10/- per transaction shall be levied in addition to given address. Service charges @ Rs.10/- per transaction shall be levied in addition to the cost of the ticket. Cancellation of E-ticket can be done by logging on to IRCTC's the cost of the ticket. Cancellation of E-ticket can be done by logging on to IRCTC's site; refund amount will be credited to your account directly within 2-3 days. For site; refund amount will be credited to your account directly within 2-3 days. For cancellation of i-ticket, you shall be required to submit your ticket at a computerized cancellation of i-ticket, you shall be required to submit your ticket at a computerized counter of Railways and on cancellation; the amount shall be credited back to your counter of Railways and on cancellation; the amount shall be credited back to your account. You can also book your Air ticket through the e-ticketing feature. Logon to account. You can also book your Air ticket through the e-ticketing feature. Logon to Indian Airlines website to make a payment for an e-ticket through State Bank of Indian Airlines website to make a payment for an e-ticket through State Bank of India, you need to select SBI as the payment option. The payment request will be India, you need to select SBI as the payment option. The payment request will be redirected to Internet Banking site. The request may be processed based on values redirected to Internet Banking site. The request may be processed based on values sent from the airlines website. Once a transaction is processed, an appropriate sent from the airlines website. Once a transaction is processed, an appropriate response will be sent to airlines site to update the status of the transaction. You can response will be sent to airlines site to update the status of the transaction. You can print the E-ticket immediatel

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on to the KSRTC website. Provide details about the start and end points of your on to the KSRTC website. Provide details about the start and end points of your journey, date of journe

journey, date of journey and number of tickets. Verify avaiy and number of tickets. Verify availability of seats on thelability of seats on the selected date and confirm the transact

selected date and confirm the transaction. Select „Online SBI to ‟ion. Select „Online SBI to ‟make the payment.make the payment. Provide your credentials and select the SBI account that will be debited for the

Provide your credentials and select the SBI account that will be debited for the payment. You are provided a KSRTC reference n

payment. You are provided a KSRTC reference number for your e-Ticket.umber for your e-Ticket.

BILL PAYMENT BILL PAYMENT

A simple and convenient service for viewing and paying your bills online. No more A simple and convenient service for viewing and paying your bills online. No more late payments No more queues No more hassles of depositing cheques .Using the bill late payments No more queues No more hassles of depositing cheques .Using the bill payment you can view and pa

payment you can view and pay various bills onliy various bills online, directly from your SBI account.ne, directly from your SBI account. You can pay telephone, electricity, insurance, credit cards and other bills from the You can pay telephone, electricity, insurance, credit cards and other bills from the comfort of your house or office, 24 hours a day, 365 days a year. Simply logon to comfort of your house or office, 24 hours a day, 365 days a year. Simply logon to http://www.onlinesbi.com/ with your credentials and register the biller to which you http://www.onlinesbi.com/ with your credentials and register the biller to which you want to pay, with all the bill details. Once the bill is uploaded by the biller, you can want to pay, with all the bill details. Once the bill is uploaded by the biller, you can make payment online.You can see 'how do i' to learn the steps for using the

make payment online.You can see 'how do i' to learn the steps for using the

facility.You can also set up Auto Pay instructions with an upper limit to ensure that facility.You can also set up Auto Pay instructions with an upper limit to ensure that your bills are paid automatically whenever they are due. The upper limit ensures that your bills are paid automatically whenever they are due. The upper limit ensures that only bills within the specified limit are paid automatically, thereby providing you only bills within the specified limit are paid automatically, thereby providing you complete control over these payments. The e-PAY service is available in various complete control over these payments. The e-PAY service is available in various cities across the country and you can now make payments to several billers in your cities across the country and you can now make payments to several billers in your region.

region.

RTGS/NEFT RTGS/NEFT

You can transfer money from your State Bank account to accounts in other banks You can transfer money from your State Bank account to accounts in other banks using the RTGS/NEFT service. The RTGS system facilitates transfer of funds from using the RTGS/NEFT service. The RTGS system facilitates transfer of funds from accounts in one bank to another on a "real time" and on "gross settlement" basis. This accounts in one bank to another on a "real time" and on "gross settlement" basis. This system is the fastest possible interbank money transfer facility available through system is the fastest possible interbank money transfer facility available through secure banking channels in India. RTGS transaction requests will be sent to RBI secure banking channels in India. RTGS transaction requests will be sent to RBI immediately during working hours post working hours requests are registered and immediately during working hours post working hours requests are registered and sent to RBI on next working day. You can also schedule a transaction for a future sent to RBI on next working day. You can also schedule a transaction for a future date. You can transfer an amount of Rs.1 lac and above using RTGS system.National date. You can transfer an amount of Rs.1 lac and above using RTGS system.National Electronic Funds Transfer (NEFT) facilitates transfer of funds to the credit account Electronic Funds Transfer (NEFT) facilitates transfer of funds to the credit account with the other participating bank. RBI acts as the service provider and transfers the with the other participating bank. RBI acts as the service provider and transfers the credit to the other bank's account.

credit to the other bank's account.

E-PAYMENT E-PAYMENT

You can pay your insurance premium, mobile phone bills and also you can purchase You can pay your insurance premium, mobile phone bills and also you can purchase mutual fund units by coming from the biller s website and selecting state bank of mutual fund units by coming from the biller s website and selecting state bank of

India in the payment ‟

India in the payment ‟option. LIC PREMIUM: For paying premium of LIC policyoption. LIC PREMIUM: For paying premium of LIC policy logon to www.licindia.com and register your policy details. When the premium is due logon to www.licindia.com and register your policy details. When the premium is due select State Bank of India in the make payment option. SBI Mutual FUND: You can select State Bank of India in the make payment option. SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes online. Logon to www.sbimf.com and select invest in the SBI Mutual Fund schemes online. Logon to www.sbimf.com and select

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the scheme in which you want to make investment in the payment option select State the scheme in which you want to make investment in the payment option select State Bank of India.CC Avenue: Enjoy shopping at the CC Avenue Shopping Mall and Bank of India.CC Avenue: Enjoy shopping at the CC Avenue Shopping Mall and purchase from a wide variet

purchase from a wide variety of products and services ty of products and services through CC Avenue Certifiedhrough CC Avenue Certified Vendors. Make payments for your purchases using your Internet enabled SBI

Vendors. Make payments for your purchases using your Internet enabled SBI accounts.

accounts.

FUND TRANSFER FUND TRANSFER

The Funds Transfer facility enables you to transfer funds within your accounts in the The Funds Transfer facility enables you to transfer funds within your accounts in the same branch or other branches. You can transfer aggregating Rs.1 lakh per day to own same branch or other branches. You can transfer aggregating Rs.1 lakh per day to own accounts in the same branch and other branches. To make a funds transfer, you should accounts in the same branch and other branches. To make a funds transfer, you should be an active Internet Ban

be an active Internet Banking user with transactioking user with transaction rights. Funds transfer to n rights. Funds transfer to PPFPPF account is restricted to the same branch. Just log on to retail section of the Internet account is restricted to the same branch. Just log on to retail section of the Internet Banking site with your credentials and select the Funds Transfer link under

Banking site with your credentials and select the Funds Transfer link under

Payments/Transfers tab. You can see all your online debit and credit accounts. Select Payments/Transfers tab. You can see all your online debit and credit accounts. Select the debit account from which you wish to transfer funds and the credit account into the debit account from which you wish to transfer funds and the credit account into which the amount is to be credited. Enter the amount and remarks. The remarks will which the amount is to be credited. Enter the amount and remarks. The remarks will be displayed in your acco

be displayed in your accounts statement for this tunts statement for this transaction. You will be disransaction. You will be displayed theplayed the last five funds transfer operations on your accounts. On confirming the transaction, last five funds transfer operations on your accounts. On confirming the transaction, you will be displayed a confirmation page with the details of the transaction and the you will be displayed a confirmation page with the details of the transaction and the option to submit or cancel the funds transfer request. A reference number will be option to submit or cancel the funds transfer request. A reference number will be generated for your record.

generated for your record.

THIRD PARTY TRANSFER THIRD PARTY TRANSFER

You can transfer funds to your trusted third parties by adding them as third party You can transfer funds to your trusted third parties by adding them as third party accounts. The beneficiary account should be any branch SBI. Transfer is instant. You accounts. The beneficiary account should be any branch SBI. Transfer is instant. You can do any number of transactions in a day for amount aggregating Rs.1lakh.

can do any number of transactions in a day for amount aggregating Rs.1lakh.

To transfer funds to third party having account in SBI, you need to add and approve a To transfer funds to third party having account in SBI, you need to add and approve a third party ,you need to register your mobile number in personal details link under third party ,you need to register your mobile number in personal details link under profile section. You will receiv

profile section. You will receive a One Time SMS password on your mobile phone toe a One Time SMS password on your mobile phone to approve a third party. If you do not have a mobile number, third party approval will approve a third party. If you do not have a mobile number, third party approval will be handled by your branc

be handled by your branch. Only after approval of th. Only after approval of third party, you will be able tohird party, you will be able to transfer funds to the third party. You can set limits for third party transactions made transfer funds to the third party. You can set limits for third party transactions made from your accounts or even set limits for individual third parties.

from your accounts or even set limits for individual third parties.

DEMAND DRAFT DEMAND DRAFT

The Internet Banking application enables you to register demand drafts requests The Internet Banking application enables you to register demand drafts requests online. You can get a demand draft from any of your Accounts (Savings Bank, online. You can get a demand draft from any of your Accounts (Savings Bank, Current Account, Cash Credit or Overdraft). You can set limits for demand drafts Current Account, Cash Credit or Overdraft). You can set limits for demand drafts issued from your accounts or use the bank specified limit for demand drafts. You can issued from your accounts or use the bank specified limit for demand drafts. You can opt to collect the draft in person at your branch, quoting a reference to the transaction. opt to collect the draft in person at your branch, quoting a reference to the transaction. A printed advice can also be obtained from the site for your record.

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Alternatively, you may request the branch to courier it to your registered address, and Alternatively, you may request the branch to courier it to your registered address, and the courier charges will be recovered from you.

the courier charges will be recovered from you.

CHEQUE BOOK REQUEST CHEQUE BOOK REQUEST

You can request for a cheque book online. Cheque book can be requested for any of You can request for a cheque book online. Cheque book can be requested for any of your Savings, Current, Cash Credit, and Over Draft accounts. You can opt for cheque your Savings, Current, Cash Credit, and Over Draft accounts. You can opt for cheque books with 25, 50 or 100 cheq

books with 25, 50 or 100 cheque leaves. You can either collue leaves. You can either collect it from branch orect it from branch or request your branch to send it by post or courier. You can opt to get the cheque book request your branch to send it by post or courier. You can opt to get the cheque book delivered at your registered address or you can provide an alternate address. Cheque delivered at your registered address or you can provide an alternate address. Cheque books will be dispatched

books will be dispatched within 3 working days frowithin 3 working days from the date of request. Jum the date of request. Just log onst log on to retail section of the Internet Banking site with your credentials and select the to retail section of the Internet Banking site with your credentials and select the Cheque Book link under Requests tab. You can view all your transaction accounts. Cheque Book link under Requests tab. You can view all your transaction accounts. Select the account for which you require a cheque book; enter the number of cheque Select the account for which you require a cheque book; enter the number of cheque leaves required and the mode of delivery. Then, submit the same.

leaves required and the mode of delivery. Then, submit the same.

ACCOUNT OPENING REQUEST ACCOUNT OPENING REQUEST

It enables you to open a new account online. You can apply for a new account only in It enables you to open a new account online. You can apply for a new account only in branches where you alrea

branches where you already have accounts. You shody have accounts. You should have an INB-enabled uld have an INB-enabled accountaccount with transaction right in the branch. Funds in an existing account are used to open the with transaction right in the branch. Funds in an existing account are used to open the new account. You can open Savings, Current, Term Deposit and Recurring Deposit new account. You can open Savings, Current, Term Deposit and Recurring Deposit accounts of Residents, NRO and NRE types. Just log on to retail section of the accounts of Residents, NRO and NRE types. Just log on to retail section of the Internet Banking site with your credentials and select the New

Internet Banking site with your credentials and select the New

Account link under Requests tab. You can see all types of accounts. Select the Account link under Requests tab. You can see all types of accounts. Select the account and account type you wish to open and submit the same. Then, you need to account and account type you wish to open and submit the same. Then, you need to select the branch and enter the initial amount to open the account. You can select any select the branch and enter the initial amount to open the account. You can select any of your accounts for debiting the initial amount. Then, submit the transaction. Your of your accounts for debiting the initial amount. Then, submit the transaction. Your new account opening request will be processed by the branch.

new account opening request will be processed by the branch.

ACCOUNT STATEMENT ACCOUNT STATEMENT

The Internet Banking application can generate an online, downloadable account The Internet Banking application can generate an online, downloadable account statement for any of your accounts for any date range and for any account mapped to statement for any of your accounts for any date range and for any account mapped to your username. The statement includes the transaction details, opening, closing and your username. The statement includes the transaction details, opening, closing and accumulated balance in the account. You can generate the online account statement accumulated balance in the account. You can generate the online account statement for any date range or for any month and year. The account statement can be viewed for any date range or for any month and year. The account statement can be viewed online, printed or downloaded as an Excel or PDF file. You also have the option to online, printed or downloaded as an Excel or PDF file. You also have the option to select the number of records displayed in each page of the statement. The options are select the number of records displayed in each page of the statement. The options are 25, 50, 75, 100 and ALL.

25, 50, 75, 100 and ALL.

TRANSACTION ENQUIRY TRANSACTION ENQUIRY

It provides features to enquire status of online transactions. You can view and verify It provides features to enquire status of online transactions. You can view and verify transaction details and the current status of transactions. Your VISA transactions can transaction details and the current status of transactions. Your VISA transactions can