A

STUDY ON

“E-BANKING OPERATIONS AT KOTAK MAHINDRA BANK”

AT

KOTAK MAHINDRA BANK LIMITED

Synopsis for project to be submitted for the award of the Degree of MASTER OF

BUSINESS ADMINISTRATION

By

Y A EDWIN

H.T. No: 217020672017

(2020-22)

Under the guidance of

Dr S Sreekanth

Associate Professor

VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT Department of

Business Administration

(Affiliated to Osmania University)

 1.INTRODUCTION:

Internet banking is the term used for the new age banking system. Internet banking is also called
online banking and it is an outgrowth of PC banking. Internet banking uses the internet as the delivery
channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing
checking and savings account balances, paying mortgages and purchasing financial instruments and
certificates of deposits.

Internet banking is a result of exploring the possibility to use internet applications in one of the
various domains of commerce. It is difficult to infer whether the internet tool has been applied for the
convenience of bankers or for 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.

Banks have traditionally been in the forefront of harnessing technology to improve their products,
services and efficiency. They have, over a long time, been using electronic and telecommunication
networks for delivering a wide range of value added products and services. The delivery channels
include direct dial - up connections, private networks,public networks etc. and the devices include
telephone, Personal Computers including the Automated Teller Machines, etc. With the popularity of
PCs, easy access to the Internet and World Wide Web (WWW), the Internet is increasingly used by
banks as a channel for receiving instructions and delivering their products and services to their
customers.

This form of banking is generally referred to as Internet Banking, although the range of products and
services offered by different banks vary widely both in their content and sophistication. From the
perspective of banking products and services being offered through the Internet, Internet banking is
nothing more than traditional banking services delivered through an electronic communication
backbone, viz, Internet. But, in the process it has thrown open issues which have ramifications beyond
what a new delivery channel would normally envisage and, hence, has compelled regulators world
over to take note of this emerging channel.

There are many advantages of online Banking. It is convenient, it isn't bound by operational timings,
there are no geographical barriers and the services can be offered at a minuscule cost. Electronic
banking has experienced explosive growth and has transformed traditional practices in banking.

Private Banks in India were the first to implement internet banking services in the banking industry.
Private Banks, due to late entry into the industry, understood that establishing a 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 any time is through internet applications. They took the internet
applications as a weapon of competitive advantage to corner the great monoliths like State Bank of
India, Indian Bank etc. Private Banks are pioneers in India to explore the versatility of internet
applications in delivering services to customers.
Some of the distinctive features of e-banking are:

● It removes the traditional geographical barriers as it could reach out to customers of different
countries / legal jurisdiction. This has raised the question of jurisdiction of the law /
supervisory system to which such transactions should be subjected.

● It has added a new dimension to different kinds of risks traditionally associated with banking,
heightening some of them and throwing new risk control challenges.

● Security of banking transactions, validity of electronic contract, customers' privacy, etc .,

which have all along been concerns of both bankers and supervisors have assumed different
dimensions given that the Internet is a public domain, not subject to control by any single
authority or group of users.

● It poses a strategic risk of loss of business to those banks who do not respond in time to this
new technology, being the efficient and cost effective delivery mechanism of banking services

● A new form of competition has emerged both from the existing players and new players of the
market who are not strictly banks.

● From the perspective of banking products and services being offered through the Internet,
internet banking is nothing more than traditional banking services delivered through an
electronic communication backbone, viz, Internet. But, in the process it has thrown open
issues which have ramifications beyond what a new delivery channel would normally envisage
and, hence, has compelled regulators world over to take note of this emerging channel.

The Regulatory and Supervisory concerns in-banking arise mainly out of the distinctive features
outlined above. These concerns can be broadly addressed under three broad categories, viz, (i) Legal
and regulatory issues,
(ii) Security and technology issues and (iii) Supervisory and operational issues.

Legal issues cover those relating to the jurisdiction of law, validity of electronic contracts including
the question of repudiation, gaps in the legal / regulatory environment for electronic commerce. On
the question of jurisdiction the issue is whether to apply the law of the area where access to the
Internet has been made or where the transaction has finally taken place.

Security of e-banking transactions is one of the most important areas of concern to the regulators.
Security issues include questions of adopting internationally accepted state of the art minimum
technology standards for access control, encryption / decryption (minimum key length etc), firewalls,
verification of digital signature, Public Key Infrastructure (PKI) etc.

The regulator is equally concerned about the security policy for the banking industry, security
awareness and education.
The supervisory and operational issues include risk control measures, advance warning system,
Information technology audit and re-engineering of operational procedures. The regulator would also
be concerned with whether the nature of products and services offered are within the regulatory
framework and whether the transactions do not camouflage money laundering operations. The Central
Bank may have its concern about the impact of Internet banking on its monetary and credit policies.
As long as the Internet is used only as a medium for delivery of banking services and facilitator of
normal payment transactions, perhaps, it may not impact monetary policy.

However, when it assumes a stage where private sector initiative produces electronic substitution of
money like e-cheque, account based cards and digital coins, its likely impact on the monetary system
cannot be overlooked. Even in countries where e-banking has been quite developed, its impact on
monetary policy has not been significant. In India, such concern, for the present is not addressed as
e-banking is still in its formative stage.

Principles of e-banking:

1. Effective management oversight of e-banking activities.

2. Establishment of a comprehensive security control process.
3. Comprehensive due diligence and management oversight process for
outsourcing relationships and other third-party dependencies.
4. Authentication of e-banking customers.
5. Non-repudiation and accountability for e-banking transactions
6. Appropriate measures to ensure segregation of duties.
7. Proper authorization controls within e-banking systems, databases and applications.
8. Data integrity of e-banking transactions, records, and information.
9. Establishment of clear audit trails for e-banking transactions.
10. Confidentiality of key bank information.
Kotak Mahindra Bank

Kotak Mahindra bank is an Indian financial service firm established in 1985. It was previously
known as Kotak Mahindra Finance Limited, a non-banking financial company.

In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the
licence to carry on banking business by the Reserve Bank of India (RBI).

Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a
bank. Today it has more than 363 branches, 20,000 employees and 10,000 crore in revenue.

Mr. Uday Kotak is Executive Vice Chairman & Managing Director of Kotak Mahindra Bank
Ltd.

In July 2011 Mr.C. Jayaram and Mr. Dipak Gupta, whole time directors of the Bank, were
appointed Joint Managing Directors of Kotak Mahindra Bank. Dr.Shankar Acharya is the
chairman of board of Directors in the company.

The Bank has its registered office at Nariman Bhavan, Nariman Point, Mumbai

Kotak Mahindra bank reached the top 100 most trusted brands of India in The Brand Trust
Report published by Trust Research Advisory in 2011.
Innovative E- Banking services offered by Kotak Mahindra Bank:

Mobile Banking:
The My Kotak screen which is the landing page / Home Page of the Mobile Banking app now has a
new design. This is a fresh look to improve experience and for easy discovery of features in the app.
This new page is currently available only on Android Phone.

Net banking:
Now with Net Banking you can enjoy a convenient way to bank from the comfort of your home or
office. Explore a one-stop solution for all your banking needs 24x7 with Kotak Net Banking services.

Chat with Keya:

Kotak Mahindra Bank’s Introduce chat with keya very own virtual assistant! Keya is smart, is quick
and available to answer your banking queries round the clock. Keya already has the ability to field
Questions on these topics:
• Credit card
• Debit card
• Savings and Current Accounts
• 811 Account
• Fixed Deposit
• Fund Transfer

Kotak Mahindra Bank is always looking for ways to make your banking simpler and more
convenient.Bank have introduced WhatsApp Banking to help you receive updates or avail services via
the WhatsApp messaging platform.

Now customers can bank with Kotak using Twitter. Your account balance, mobile & DTH recharge,
order book, transaction history, Cheque book request and many more activities are now just a tweet
away. You have to link your twitter handle to your bank account and get instant updates simply by
tweeting to @Kotak Bank Ltd. Checkout the hashtag list to know what to tweet.
Mail Money:
Only send money by knowing the email I’d and mobile number. Mail money by just knowing the
email I’d and mobile number of the beneficiary. Schedule transfers for the next 7 days. Option to
cancel the payment till the transfer is not done. Regenerate One Time Passwords (OTPs) if sender or
beneficiary forget or misplace them.

ATM machine:
Experience the convenience of banking without stepping into a branch with our widespread network
of ATMs. Use our ATM or Branch Locator to find the nearest ATM though Kotak ATM or Branch
Locator’

Cash deposit machine:

Cash Deposit Machine is a self-service terminal that enables you to deposit cash without any manual
intervention of the branch officer. Deposit your cash through the simple and fast CDM installed in the
branch and get instant credit in your CASA account. You get immediate receipt, No need to fill cash
deposit slips, No need to stand in long queues at the cash counter table, To use the CDM, you simply
need to have Kotak Mahindra Bank Debit Card or know the Kotak Mahindra Bank's account number
in which you wish to deposit the money.

Cheque Deposit machine:

A cheque deposit kisko is a self-services terminal that allows the customer to deposit a cheque without
any manual assistance or supervision. No need to stand in queues. And no need to fill deposit slips
2 .THE NEED OF STUDY:

The developments taking place in information and communication technology are affecting financial
institutions worldwide. This evolution has transformed the way banks deliver their services, using
technologies such as automated teller machines, phones, the Internet, credit cards, and electronic cash.
Internet banking is still at an infancy stage in the world.
This project is focused on what are the customer's perceptions about internet banking and what are
the drivers that drive consumers. How consumers have accepted internet banking and how to improve
the usage rate were the focus of the research area

3 . SCOPE OF THE STUDY:

The scope would be wide as we can come across the benefits as well as various risks & threats of
e-banking.
To gain accurate results for the study, 100 people were given questionnaires to know “HOW MUCH
THEY ARE SATISFIED WITH THE E-BANKING SERVICES OF KOTAK BANK”.
The scope of the study was limited to the customers of KOTAK bank & the city of Ahmedabad

4 .OBJECTIVES OF THE STUDY:

A Study on customer's satisfaction on E-Banking facility of Kotak Mahindra Bank.

To study the reasons for the limited use of e-banking services
To create Awareness among customers towards e-banking services
To study and to make e-banking users aware of various e- banking risks like Phishing ,identity theft,
frauds of plastic money, Trojan, malware etc.
5 .METHODOLOGY OF STUDY:

The project titled “E-BANKING FACILITY AT KOTAK MAHINDRA BANK” is a result of

Descriptive Study

The term descriptive research refers to the type of research question, design, and data analysis that
will be applied to a given topic.

Descriptive studies, primarily concerned with finding out "what is", where is, how is and may also
give different preferences according to demographic factors such as age, gender, income level,
education level.

6 .DATA COLLECTION:

The data collected is majorly from secondary data and primary data.

Secondary Data:
The data which is already collected and used by someone else rather than the user is called
SECONDARY DATA.
This data is available from books, journals, magazines, newspapers and websites.
Primary Data:
The data which is collected for the first time by the user or researcher is called primary data.
Surveys, Personal interviews, experiments etc are the methods through which primary data is
collected.

STATISTICAL TOOLS :
➢ Pie charts
➢ Bar graph
7 .LIMITATIONS:

★ Only 200 samples would be visited and interviewed, which comprises a very small sample.

★ . Some respondents hesitate in providing information.

★ . The information provided by respondents may not be reliable.

★ . During the data collection the respondents did not fill the questionnaires genuinely, for
instance the respondents who were not using the e-banking facilities have attempted the
segments that were framed for the users of the e banking facilities. Due to this there may be
variations in the results obtained.

★ The respondents restricted themselves from answering the questions mentioned for the fear of
letting their views disclosed to others.