Project Work - INTERNET BANKING SBI PDF

TO STUDY OF CUSTOMER SATISFACTION ON INTERNET BANKING
SERVIES WITH THE
STATE BANK OF INDIA
A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE
DEGREE OF
BACHELOR OF ACCOUNTING AND FINANCE
UNDER THE FACULTY OF COMMERCE
BY
PRIYANKA SANTOSH ANGRE
Roll no- 03
UNDER THE GUIDANCE OF
MANISHA
VALIA C.L COLLEGE OF COMMERCE
D.N.NAGAR, ANDHERI (WEST), MUMBAI 400053
SEMISTER 5
2018-2019
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TO STUDY OF CUSTOMER SATISFACTION ON INTERNET BANKING
SERVIES WITH THE
STATE BANK OF INDIA
A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE
DEGREE OF
BACHELOR OF ACCOUNTING AND FINANCE
UNDER THE FACULTY OF COMMERCE
BY
PRIYANKA SANTOSH ANGRE
Roll no- 03
UNDER THE GUIDANCE OF
MANISHA
VALIA C.L COLLEGE OF COMMERCE
D.N.NAGAR, ANDHERI (WEST), MUMBAI 400053
SEMISTER 5
2018-2019
2
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DECLARATION
I the undersigned Miss. Priyanka Santosh Anger here by, declare that the work embodied in
this project work titled “Customer Satisfaction on Internet Banking of State Bank of
India”, form my own contribution to the research work carried out under the guidance of Prof.
MANISHA 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 work of others, it has been clearly indicated as
such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.
Priyanka Santosh Anger
Name and signature of the learner
Certified By
Prof. MANISHA
Name and signature of the Guiding Teacher
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ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.
I would like to acknowledge the following 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 project.
I would like to thank my Principal Mrs. Shobha Menon for providing the necessary
facilities required for whose completion of this project.
I take this opportunity to thank our coordinator, Ms. Siddha, for her moral support
and guidance.
I would also like to express my sincere gratitude towards my project guide, Prof.
Manisha guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books
and magazine 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 1: Introduction page no 1
Chapter 2: Research Methodology
Chapter 3: Review of Literature
Chapter 4: Data Analysis and Interpretation
Chapter 5: Suggestion & Conclusion
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ABSTRACT
The study has been conducted in order to meticulously evaluate and examine the level
of satisfaction towards internet banking services. The purpose of this study is also to
observe and analyse the purpose of using internet banking, reasons for chosen internet
banking, satisfaction of customers towards internet banking and to find out the
problems encountered by the customers. The primary data for this study was compiled
through well-structured questionnaire filled in on a one-to-one basis by 106 customers
of SBI Bank. The study results clearly indicated that the majority of the users of internet
banking were in the high level of satisfaction. Hence, the study highlights the important
points that SBI Bank’s top management must consider in order to increase the number
of internet banking users and to improve their service quality.
The evolution of state bank of India can be traced back to the first decade of the 19th
century, it began with the establishment of the bank of Calcutta on 2 June 1806
We briefly review the main trends that are affecting the global banking industry.
Underlining the effects of each of these changes on the risk profile of banks. For the
past three decades India’s banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached
even to the remote comers of the country. This is one of the main reasons of India’s
growth process
The market research survey undertaken at SBI bank aims to discover preference of
various consumer awareness of the SBI bank and the different products of the SBI bank.
The general objective of the survey is to create and expand existing customer’s base
and to identify competition and also emboss SBI bank in the minds of Indian people.
This project in its endeavour provide a picturesque depiction, aims to boost decision
making regarding how to aware of bank services and having identify them as
prospective customer.
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The methodology through which information has gathered is mainly ready to use
customer’s computerized database. The author of this report filled detailed report, being
identified as strong potential market for SBI bank and consumer awareness.
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SR.NO. TOPICS
1.1 BANK
1.2 DEFINATION OF BANK
1.3 ORIGIN OF BANK
1.4 TYPES OF BANK
1.5 BENEFIT OF BANKING
1.6 FUNCTIONS OF BANK
1.7 IT ITS PIVOTAL
1.8 NEW BANKING TECHNOLOGY
1.9 DIFFERENCE BETWEEN INTERNET BANKING AND
TRADITIONAL BANKING
1.10 INTERNET
1.11 INTERNET BANKING
1.12 INTERNET BANKING SYSTEM
1.13 TYPES OF INTERNET BANKING
1.14 SEVEN BEST ONLINE FETURES
1.15 ADVANTAGES & DISADVANTAGES OF INTERNET
BANKING
1.16 THE E-BANKING STRATEGIES
1.17 SECURITY ISSUES OF NET BANKING
1.17.1 INTRODUCTION
1.17.2 TYPES OF FRAUDS
1.17.3 TEN STEPS TO MINIMIZE SECURITY ISSUES
1.18 COMPANY PROFILE
1.18.2 KEY DATES
1.18.3 SUBSIDIARIES
1.18.4 GENERAL INFORMATION
1.18.5 SECURITY
1.18.6 BANK’S TERMS
1.18.7 CUSTOMER OBLIGATION
1.18.8 DO’S & DON’TS
1.18.9 SERVICES PROVIDED BY SBI INTERNET BANKING
1.18.10 SWOT ANALYSIS OF SBI INTERNET BANKING
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CHAPTER 1: INTRODUCTION
1.1 BANK:-
Bank is a financial institution and a financial intermediary that accepts deposits and
channels those deposits into lending activities, either directly by loaning or indirectly
through capital markets.
A bank may be defined as an institution that accepts deposits, makes loans, pays checks,
and provides financial services. A bank is a financial intermediary for the safeguarding,
transferring, exchanging, or lending of money. A primary role of banks is connecting
those with funds, such as investors and depositors, to those seeking funds, such as
individuals or businesses needing loans. A bank is the connection between customers
that have capital deficits and
customers with capital
surpluses. Banks distribute the
medium of exchange. Banking is a
business. Banks sell their services
to earn money, and they must
market and manage those services
in a competitive field. Banks are financial intermediaries that safeguard, transfer,
exchange, and lend money and like other businesses that must earn a profit to survive.
Understanding this fundamental idea helps you to understand how banking systems
work, and helps you understand many modern trends in banking and finance.
1.2 Definition of Bank
A financial institution that is licensed to deal with money and its substitutes by
accepting time and demand deposits, making loans, and investing in securities. The
bank generates profits from the difference in the interest rates charged and paid.
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1.3 Origin of bank:
Banks and money are essential to maintaining economies and they impact the entire
societies and nations. Hence they are closely regulated and strict procedures and
principles are advised to be followed by the banks by various authorities and
governments. In the United States, banks may be chartered by federal or state
governments and in India government decides the rules for opening any banks or its
branches.
From a business structure perspective, most of the Banks are corporations or

cooperative societies and may be owned by groups of individuals, corporations, or some
combination of the two. Around the world banks are supervised by governments to
guarantee the safety and stability of the money supply and of the country.
1.4 Types of Banks:
Banks provide a multitude of financial services beyond the traditional practices of

holding deposits and lending money. Commercial, retail, and central banks are three
main types. Understand the difference between the three:
Commercial Banks: Provide familiar services such as checking and savings accounts,
credit cards, investment services, and others. Historically, offered their services only to
businesses, including credit and debit cards, bank accounts, deposits and loans, and
secured and unsecured loans. Due to deregulation, commercial banks are also
competing more with investment banks in money market operations, bond
underwriting, and financial advisory work.
Retail Banks: Developed to help individuals not served by commercial banks. Provide
basic banking services to individual consumers. These institutions help customers save
money, acquire loans, and invest. They also offer a wide range of financial services to
a broad customer base. Examples include savings banks, savings and loan associations,
and credit unions and examples of products and services include safe deposit boxes,
checking and savings accounting, certificates of deposit (CDs), mortgages, and car
loans.
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Central Banks: Banks formed, owned and regulated by the government to manage,
regulate, and protect both the money supply and the other banking institutions.
Guarantee stable monetary and financial policy from country to country. Typical
functions include implementing monetary policy, managing foreign exchange and gold
reserves, making decisions regarding official interest rates, acting as banker to the
government and other banks, and regulating and supervising the banking industry.
Central banks serve as the government's banker. Central banks issue currency and
conduct monetary policy.
Co-operative Banks: Co-operative Banks are the banks that usually provide short
term, medium term, long term credit to agricultural purposes. Co-operative Banks also
provides loans to small-scale artisans. Co-operative Banks usually provide credit
facilities to farmers, small-scale industries, etc at a cheaper rate of interest. Co-operative
Banks are mainly situated in rural areas and can also be seen in urban areas.
Industrial Banks: Industrial banks are also called as Investment Banks. Industrial
banks provide long-term loans to the industries. Industries require long-term capital for
buying machinery, construction of buildings, expansion of operations, etc. These
capital required by industries is provided by industrial banks for industrialists to grow
their businesses. Industrial banks accept long-term deposits from the public. They
secure capital by issuing shares and debentures.
Agricultural Banks: Agricultural Banks are the banks which provide agricultural
credit to the farmers. The Agricultural Development Banks provide medium term and
long term credit. Some examples of Agricultural Banks in India are Agricultural
Finance Corporation, Agricultural Refinance and Development Corporation, National
Bank for Agricultural and Rural Development (NABARD).Agricultural Banks are
established by the government to promote agricultural credit in the country.
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1.5 Benefits of Banking:
Safety: It’s risky to keep your money in cash as it could be lost, stolen, or destroyed.
Financial institutions keep your funds safe.
Convenience: With banks, there's

no need to carry cash. If you need
cash, you can easily access your
funds virtually anywhere.
Security: Banks follow stringent

laws and regulations and at most
banks, funds are insured.
Financial Future: As individual you'll have access to financial professionals to help

you. Knowledgeable advice of bankers is a valuable resource to help you build a better
financial future.
1.6 Functions of Banks

A. Primary Functions of Banks:
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The primary functions of a bank are also known as banking functions. They are the
main functions of a bank.
These primary functions of banks are explained below.
1. Accepting Deposits:
The bank collects deposits from the public. These deposits can be of different types,
such as: -
a. Saving Deposits: This type of deposits encourages saving habit among the public.
The rate of interest is low. At present it is about 4% p.a. Withdrawals of deposits are
allowed subject to certain restrictions. This account is suitable to salary and wage
earners. This account can be opened in single name or in joint names.
b. Fixed Deposits: Lump sum amount is deposited at one time for a specific period.
Higher rate of interest is paid, which varies with the period of deposit. Withdrawals are
not allowed before the expiry of the period. Those who have surplus funds go for fixed
deposit.
c. Current Deposits: This type of account is operated by businessmen. Withdrawals

are freely allowed. No interest is paid. In fact, there are service charges. The account
holders can get the benefit of overdraft facility.
d. Recurring Deposits: This type of account is operated by salaried persons and petty
traders. A certain sum of money is periodically deposited into the bank. Withdrawals
are permitted only after the expiry of certain period. A higher rate of interest is paid.
2. Granting of Loans and Advances

The bank advances loans to the business community and other members of the public.
The rate charged is higher than what it pays on deposits. The difference in the interest
rates (lending rate and the deposit rate) is its profit.
The types of bank loans and advances are:-
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a. Overdraft: This type of advances is given to current account holders. No separate
account is maintained. All entries are made in the current account. A certain amount is
sanctioned as overdraft which can be withdrawn within a certain period of time say
three months or so. Interest is charged on actual amount withdrawn. An overdraft
facility is granted against a collateral security. It is sanctioned to businessman and firms.
b. Cash Credit: The client is allowed cash credit up to a specific limit fixed in
advance. It can be given to current account holders as well as to others who do not
have an account with bank. Separate cash credit account is maintained. Interest is
charged on the amount withdrawn in excess of limit. The cash credit is given against
the security of tangible assets and / or guarantees. The advance is given for a longer
period and a larger amount of loan is sanctioned than that of overdraft.
c. Loans: It is normally for short term say a period of one year or medium term say a
period of five years. Now-a-days, banks do lend money for long term. Repayment of
money can be in the form of instalments spread over a period of time or in a lumpsum
amount. Interest is charged on the actual amount sanctioned, whether withdrawn or
not. The rate of interest may be slightly lower than what is charged on overdrafts and
cash credits. Loans are normally secured against tangible assets of the company.
d. Discounting of Bill of Exchange: The bank can advance money by discounting or

by purchasing bills of exchange both domestic and foreign bills. The bank pays the
bill amount to the drawer or the beneficiary of the bill by deducting usual discount
charges. On maturity, the bill is presented to the drawee or acceptor of the bill and
the amount is collected.
B. Secondary Functions of Banks

The bank performs a number of secondary functions, also called as non-banking
functions.
These important secondary functions of banks are explained below.
1. Agency Functions
The bank acts as an agent of its customers. The bank performs a number of agency
functions which includes:-
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a. Transfer of Funds: The bank transfer funds from one branch to another or from one
place to another.
b. Collection of Cheques: The bank collects the money of the cheques through clearing
section of its customers. The bank also collects money of the bills of exchange.
c. Periodic Payments: On standing instructions of the client, the bank makes periodic
payments in respect of electricity bills, rent, etc.
d. Portfolio Management: The banks also undertake to purchase and sell the shares
and debentures on behalf of the clients and accordingly debits or credits the account.
This facility is called portfolio management.
e. Periodic Collections: The bank collects salary, pension, dividend and such other
periodic collections on behalf of the client.
f. Other Agency Functions: They act as trustees, executors, advisers and

administrators on behalf of its clients. They act as representatives of clients to deal with
other banks and institutions.
2. General Utility Functions

The bank also performs general utility functions, such as: -
a. Issue of Drafts and Letter of Credits: Banks issue drafts for transferring money
from one place to another. It also issues letter of credit, especially in case of, import
trade. It also issues travellers' cheques.
b. Locker Facility: The bank provides a locker facility for the safe custody of valuable
documents, gold ornaments and other valuables.
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c. Underwriting of Shares: The bank underwrites shares and debentures through its
merchant banking division.
d. Dealing in Foreign Exchange: The commercial banks are allowed by RBI to deal
in foreign exchange.
e. Project Reports: The bank may also undertake to prepare project reports on behalf
of its clients.
f. Social Welfare Programmes: It undertakes social welfare programmes, such as

adult literacy programmes, public welfare campaigns, etc.
g. Other Utility Functions: It acts as a referee to financial standing of customers. It

collects creditworthiness information about clients of its customers. It provides market
information to its customers, etc. It provides travellers' cheque facility.
1.7 IT Is Pivotal
IT is central to banking This is one of the major reasons why new private and multi
national banks have been able to survive, thrive, and adapt in an increasingly
competitive space. These banks were able to leverage on below-cost channels such as
ATMs and Net banking to the optimum levels contributing to reduced operating costs.
Banks have realized that shifting customer access to beer cost channels can help bring
down
operating costs
These channels are used not only to improve customer service but ako to divert traffic
from the branches. It is a fact that the cost of transactions over these channels is lower
than doing this through the branches," says Rangesh Nayar, Country Manager-
Financial Services Sector, IBM but this does not mean that branch banking is obsolete.
Rather, banks are reinserting their business models to offer new financial services
through its branches.
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1.8 New Banking Technologies
Fintch mobile and new platforms are driving a digital transformation of the banking
industry. New technology in banking is already transforming the financial world, and
the traditional banking landscape is set to rapidly change in the next five years. Safety
features, such as advanced cryptography and biometrics will be protect against bank
scams, and remote applications will make it easier than ever to do your banking without
ever visiting a branch but you do. the experience is likely to be much more customer-
friendly
a. Blockchain Technology: Blockchain technology is set to fundamentally transform

banking and financial services It decentralized financial management from a central
authority to a widespread network of computers. Financial transactions are broken
down into encrypted packets. Or blocks.,” which are then added to the than of computer
code and encrypted for enhanced cyber security, it’s been compared to email for
money” by block chain start up CEO Blythe Masters. Because the technology has the
potential to improve numerous Facets of hacking and is the basis for other banking
technology trends like Bitcoin
b. Upgraded ATMS: ATMs transformed the banking system when they were first
introduced in 1967. The next Revolution in ATMs is likely to involve contactless
payments. Much like Apple Pay or Google Wallet, soon you’ll be able to conduct
contactless ATM transactions using a Smartphone. Some ATM innovations are already
available overseas and might reach the U.S. shortly
c. Apple Store-Style Experience: The in bank experience of the might be more

shopping at an Apple store.
Because so many people now can downward user-friendly banking apps or easily find
an ATM to handle basic banking transactions, the typical in-bank customer today is
seeking. Help invoking a personal interaction Banks hoping to increase sales in the
future are Considering this transformation as a way for customers to engage more
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directly with the Bank and its products, just like in an Apple store, directing customers
to interact with tech Kiosks for some transactions and reserving person to person
interaction for answering
Questions or addressing needs unique to the individual consumer.
Mobile and Digital Banking: The mobile and digital transformation in banking has
only just begun and growth is Already explosive. Banks are investing heavily in digital
banking technology, in which Customers use mobile, web or digital platforms to use
banking services. In a Forbes Survey on banking customer engagement from late 2016,
86 percent of banks indicated That these types of services represent their top technology
investments
1.9 Differences between Internet Banking and Traditional Banking
The differences between traditional banking and Internet banking on the basis of
presence, time, accessibility, security, finance control, expensive, cost, customer
service and contact are differentiated as follows
Basis of Traditional Banking Internet Banking

Difference
Presence Banks exist physically for Internet banks do not have
serving the customers, physical presence as services
are provided online.
Accessibility People have to visit banks Internet banking is available
only during the working at any time and it provides 24
hours. hours access.
Security Traditional banking does not Online banking is the
encounter e-security threats. tempting target for hackers.
Security is one of the
problems faced by customers
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in accessing accounts throe h
internet.
Control Customers who often travel Customers who often travel
abroad cannot pay close abroad can have greater
attention and control of their control over their finances.
finances.
Expensive Customers have to spend Customers do not have to
money for visiting banks. spend money for visiting
banks. They can avoid bank
charges that may be charged
for certain teller transactions
or when they pay bills
electronically — directly
from their account to the
merchant. It helps to save
money on postal charges.
Cost The cost incurred by Such costs are eliminated as
traditional banks includes a the banks do not have
lot of operating and fixed physical presence.
costs.
Customer Service ln traditional banks, the In online banking, the
employees and clerical staff customers do not have to
of the bank can attend only stand in queues to carry out
few customers at a time. certain bank transactions.
Contact Customers can have face to Customers can have only
face contact in traditional electronic contacts.
banking.
1.10 INTERNET:
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It is said that necessity is the mother of
invention. And true, it is seeds of Internet
were sown in the ashes of the world war
having bombed the cities of Hiroshima and
Nagasaki, US military was forced to provide
the answer to the question – What if
someone bombed the USA? So for many
years after the war, most of the US military
research concentrated on ways and means to
survive the nuclear holocaust. And one of the most important strategic problems was-
“How would us authorities communicate with each other in the aftermath of a nuclear
attack?” computers were already there. But, communication networks were connected
to each in a private fashion- in sort of chains: somewhat like an electricity line to your
home. This means that if even one chain in the middle were blown up, the whole
network would collapse.
Then in the 1960‟s the problem was taken by America’s foremost military think tank,
the Rand Corporation. After a lot of ideas were put up and knocked down, Paul baron-
a rand “thinker” hit upon an idea. “What if the network was not built like a chain but
like a fish net?” he said. If one strand on the fish net broke the net would still be
functional. After spending many agonizing hours over it, he came up with 11-volume
report for the pentagon. But, as fate would have it was rejected. By then, young
engineers were impressed by the idea and worked on it. Well before the end of the
decade, the first net was created and called ARPANET, connecting four American
research organizations- university of Utah, university of California in Los Angeles and
Santa Barbara, and Stanford research institute.
Internet as a communication medium and as a repository of information has caught

the imagination of computer users. This has fuelled an unparalleled growth in the
number of Internet users.
1.11 INTERNET BANKING
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The finance services, associated with Internet, are being promoted due to the
widespread use of Internet. Internet banking, that is also known as online banking, is
one of the emerging services. The Internet is rapidly turning out to be a tool of world-
wide communication. The increasing use of Internet earlier promoted producers and
entrepreneurs to sell their products online. It has also become an important source of
information and knowledge. Due to this, many banking and finance organizations
have come up with the idea of Internet banking or online banking.
Internet Banking can be defined as a facility provided by banking and financial

institutions, that enable the user to execute bank related transactions through Internet.
The biggest advantage of Internet banking is that people can expend the services
sitting at home, to transact business. Due to which, the account holder does not have
to personally visit the bank. With the help of Internet banking many transactions can
be executed by the account holder. When small transactions like balance inquiry,
record of recent transaction, etc. are to be processed, the Internet banking facility
proves to be very handy. The concept of Internet banking has thus become a
revolution in the field of banking and finance.
1.12 INTERNET BANKING SYSTEM:
Internet Banking System is a system that has been developed in order to help clients
with the daily day-to-day transactions. Internet banking systems means that clients can
now do banking at the leisure of their homes. Also known as online banking, the system
allows both transactional and non-transactional features. Online banking or internet
banking allows customers to conduct financial transactions on a secure website
operated by the retail or virtual bank.
Deeper definition: Internet banks are accessed via web browsers and mobile apps,
providing customers with banking services from any place with access to the internet.
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Internet banks generally do not offer their own ATM services, although they often work
with other banks and organizations to provide no-fee or low-fee ATM access for their
customers.
The biggest strength of an internet bank is also its greatest weakness: If internet access
is spotty or lacking, customers cannot access their accounts. In addition, there are
security issues to keep in mind. Accessing one’s internet bank account via an unfamiliar
or unsecured public Wi-Fi hotspot carries a certain level of risk, and there is the ever-
present threat of hackers taking down an internet bank’s website. Nearly all traditional
banks offer online banking services that are very similar or indistinguishable from
internet bank services. This helps regular banks provide banking services beyond the
footprint of their physical branch network.
1.13 TYPES OF INTERNET BANKING OR E-BANKING
Understanding the various types of Internet banking will help examiners assess the
risks involved. Currently, the following three basic kinds of Internet banking are
being employed in the marketplace
Informational
This is the basic level of Internet banking. Typically, the bank has marketing
information about the bank's products and services on a stand-alone server. The risk is
relatively low, as informational systems typically have no path between the server and
the bank's internal network. This level of Internet banking can be provided by the
banks or outsourced. While the risk to a bank is relatively low, the server or web site
may be vulnerable to alteration Appropriate controls therefore must be in place to
prevent unauthorized alterations to the bank's server or web site.
Communicative
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This type of Internet banking systems and the customer. The interaction between the
bank's system and the customer. The interaction maybe limited to electronic mail
account enquiry, loan applications, or static file updates (name and address change).
Because these servers may have a path to the bank's internal networks, the risk is
higher with this configuration than with Information systems. Appropriate controls
need to be in the place to prevent, monitor and alert management of any unauthorized
attempt to access the bank's internal networks and computer systems. Virus controls
also become much more critical in this environment
Transactional
This level of Internet banking allows customers to execute transactions. Since a path
typically exists between the server and the bank of outsourcing internal network this
is the highest risk architecture and must have the strongest controls. Customer
transactions can include accessing accounts, paying bills, transferring funds etc.
1.14 Seven Best Online Features
1 Easy account creation
There was a time when the only way to open a bank account was in person
Nowadays. It's possible to complete the enrolment process from start to finish without
ever leaving your home. But the best part is that once you've made an account,
additional accounts are ever easier to create since the bank already has the necessary
information in is database with multiple accounts, moving money between Themis
often free & without delay.
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2. Electronic Statements
Traditional bill statements are annoying on two fronts. First, they unnecessarily cbg up
your physical mi box. Second, they're a tremendous waste of paper. Of course switching
to email statements can still result in digital clutter. But deleting an email is far easier
than shredding paper. Phs, with apps like Google Inbox, it's nice to be able to receive
and read your bill reminders no matter where you go.
3. Automatic Bill Payments
Most online banks alba you to link your bills directly to your account and have them
paid on time automatically for every bl you set up. That's one less thing you need to
juggle every month That can add up to a lot of reduced stress. Automatic bill payment
should only be used f your balance is more than enough to cover all of your bike at
any given time
4. Mobile Check Deposits
Many banks offer a feature called Mobile Check Deposits, though the precise name
might differ from bank to bank. The concept is simple: instead of physically visiting
your call bank branch to deposits a cheque, you can do it from home by uploading a
photo of the cheque (front back)
5. Secure Message Alerts
One of the better reasons to use online banking is that you can receive notifications in
Close to real-time. These notifications can be trivial or annoying at times, but they can
Also save your life. If anything, suspicious happens on your account, t’s incredibly
Helpful to have an immediate alert since waiting too long can have disastrous
Consequences. That being said, even the trivial alerts can be useful in the right
situations
6. Report & Management Tools
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Prior to online banking t was not exactly easy to get on demand reports summaries for
your account activity. Depending on the bank, there might even have been a fee
Associated with retrieving that ion. Yet, with online banking it’s always one click
away.
7. Desktop Software Integration
If you use Quicken to help manage your money. Then online banking might mike that
Area of your life even easier. As long as your banks support your tool you should be
able to integrate your bank account seamlessly with whatever desktop software you
use.
1.15 Advantages & Disadvantages of Internet-Banking
We find that there are many advantages of E-banking like:

• Online banking gives more interest rates than any other form of banking and
also saves lot of expenses.
• We can carry out all banking transactions at our own convenience and do not
have to depend on normal bank timings
• Lot of precious time is saved because of e- banking, as transactions are carried

out in seconds and we can see the updates immediately.
• Since everything is computerized, we save all the paper work and we save the
trouble of maintaining Phys cords. There is nothing manual hen the cords are
perfect and accurate
• Banks also provide balance alerts if our balance reduces and alerts the customer
in case of due dates of our bill occurs.
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• There are no extra charges and these e-banking services are absolutely free.
Previously banks used to charge heavily for all their services.
• There is improvement in customer access, since the bank can access more
customers within a short time through the internet.
• The customers can be offered more services through online banking.
There are also some disadvantages of online banking which restricts

people to use this service, like
• E-banking has reduced the bank to customer personal interaction, since all the
transactions are handled by the customer from the internet account there is no
personalized banking service which reduces customer to bank interaction
• When you are entering e-banking instructions there is always a chance that the
information may be leaked or your account can be hacked and all your
confidential information is leaked. There are many banks that have good
security systems to guard such thefts.
• You can access your online banking account by entering your personal
identification and your password. This password can be used by anyone to
access your account and transfer funds or cause financial problems. Whereas
when you are visit the bank personally your account is handled by the bank staff
and therefore your confidential information cannot be viewed by anyone. Also
all your instructions are given in writing with your signature, therefore there are
less chances of fraud and information leak.
• When you are using internet banking the internet security is a big problem faced
by many banks. So, the customer must be aware of the security issues and
protect their identity another personal details from hackers.
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1.16 The E-Banking Strategies
Though e-banking offers vast opportunities yet even less than one in three banks have
an-Banking strategy in place. According to a study, less than 15 percent of banks with
transactional. Websites will realize profits directly attributable to those sites. Hence,
banks must recognize the seriousness of the challenge ahead and develop a strategy that
will enable them to leverage the opportunities presented by the Internet.
No single e-banking strategy is right for every banking company. But whether they
adopt an offensive or a defensive posture, they must constantly re-evaluate their
strategy. In the fast-paced e-economy, banks have to keep up with the constantly
evolving business models and technology innovations of the Internet space. Early e-
business adopter like Wells Fargo not only entered the e-banking industry first but also
showed flexibility to change as the market developed. Not many banks have been as e-
business-savvy. But the pressure is now building for all banks to develop sound e-
business strategies that will attract and retain increasingly discriminating customers.
The major problem with the banks, which have already invested huge amounts in their
online initiatives, is that their online offerings remain unprofitable. Though banks have
enrolled some existing customers in their online programs, they are not getting
customers in large numbers this has made banks wonder whether there is any value in
the online channel Just enrolling customers for online banking may not be sufficient
until and unless they use the site actively banks must make efforts to increase their site
usage by customers and effectively co-ordinate the online channel with branches and
call contested only they will be able to derive maximum value that includes cost
reduction, cross-selling opportunities, and higher customer retention.
Customers have some rational reasons for staying offline. Some of these reasons
include usability features of the site, concerns about security and frequent complaints
that signing up is complicated and time-consuming. Banks can solve these problems by
refocusing investment on improving the site’s basic functionality and user-friendliness,
and avoiding advanced features that most customers neither understand nor value.
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Banks must make efforts to familiarize customers with their sites and show them how
easy and efficient the online channel is to use.
Integrating the online channel with the rest of the bank is another important issue that
banks must focus upon. This is important because nearly all the value of the online
channel is realized offline in cross sales completed in other channels and in cost
reductions. An actively used online channel should also serve as a medium to sell
banking services for the branch staff, the call centre, and the relationship manager
Integrated channels working together are far more effective than a group of channels
working without any coordination
To facilitate this integration. Banks must formulate paths that people in various
customer segments are likely to take among the channels. The interactions in each
channel can then be worked around these paths. For example, a call centre
representative must work out which channels the customer used before coming to her,
and which channels the customer is likely to visit next. Each channel must have entry
and exit points that must welcome customers and then send to other channels. Hence,
the overall goal of banks is to create a seamless multichannel experience.
On the other hand, those banks that are planning to build their online businesses will
have to understand several strategic issues like do they have the right business model
for e- banking? How should they price their e-banking products and services? Bankers
planning to move into e-Banking have to explore different options, make investments
and have to develop a variety of Partnerships. They have to put their time and efforts to
identify the best opportunities. In the case of traditional banks, if they are too aggressive
in using price incentives to build their e-business they risk the profitability of their
traditional business. However, if they do not offer sufficient price incentives for
customers to bank online, their efforts to build a sound e-banking business may not
fructify
Banks have to be creative in rethinking organizational structures and management

processes. Traditional banks that are conservative in nature may find it difficult to
attract and retain online talent. Moreover, getting people in the traditional business to
help build an e-enterprise would not be an easy task. To make all this happen, requires
29
a major revision of incentive systems planning and budgeting processes, and
management roles. Banks can exploit the opportunities provided by the Internet if they
demonstrate courage. Use their imagination, and take decisive action while most of the
banks have started focusing on e-banking activities, a new challenge in the form of
mobile banking has emerged. M-Banking is both an additional opportunity for banks to
offer their online services and an additional channel from which to access new
customers and
cross-sell to existing customers. Rapidly changing lifestyles of customers and their
demand for more speed and convenience has subdued the role of branch banking to a
certain extent. With the proliferation of new technologies, disintermediation of
traditional channels is being witnessed. Banks can go beyond their traditional role as a
channel for banking/financial services and can become providers of personalized
information. They can successfully leverage m-banking to:
• Provide personalized products and services to specific customers and thus

increase customer loyalty.
• Exploit additional sources of revenue from subscriptions, transactions and third-
party Referrals.
M-Banking gives banks the opportunity to significantly expand their customer

relationships provided they position themselves effectively. To leverage these
opportunities, they must form structured alliances with service affiliates, and acquire
competitive advantage in collecting. processing and deploying customer information.
1.17 SECURITY ISSUES OF NET BANKING
1.17.1 INTRODUCTION:
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The Internet has made banking shopping, and conducting other financial transactions
online quite convenient. But when it comes to your money, you want to make sure your
transactions are safe. security of a customer's financial information is very important,
without which online banking could not operate.
Presently, Internet banking customers only need a computer with access to the Internet
to use Internet banking services. Customers can access their bank accounts from
anywhere in the world. Each customers is provided a login ID and a password to access
the service. It is indeed easy and convenient for customers.
However, the use of password does not provide adequate protection against Internet
fraud such as phishing. The problem with password is that when it has been
compromised, the fraudsters can easily take full control of online transactions. In such
cases, the password is no longer works as an authentication token because we cannot
be sure who is behind the keyboard typing that password in However, easy access and
convenience should not be at the expense and mercy of the security of information. This
is important in order to ensure the confidentiality of information and that it is not being
manipulated or compromised by the fraudsters.
In this lesson, we will review strategies you should employ when dealing with money
and the Internet You will learn how to make sure a website is secure, inducing checking
the SSL certificate. In addition, you'll learn the steps you need to take to make shopping
online a safe and enjoyable experience.
1.17.2 TYPES OF FRAUDS:
Nowadays, the nature of attacks is more active rather than passive. Previously, the
threats were all passive such as password guessing, dumpster diving and shoulder
surfing. Here are some of the techniques used by the attackers today:
• Trojan Attack. The attacker installed a Trojan, such as key logger program, on
a user's computer. This happens when users visited certain websites and
downloaded programs. As they are doing this, key logger program is also
installed on their computer without their knowledge. When users log into their
bank's website, the information keyed in during that session will be captured
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and sent to the attacker. Here, the attacker uses the Trojan as an agent to
piggyback information from the user's computer to his backyard and make any
fraudulent transactions whenever he wants.
• Man-in-the-Middle Attack Here, the attacker creates a fake website and

catches the attention of users to that website. Normally, the attacker was able to
trick the users by disguising their identity to make it appear that the message
was coming from a trusted source.
Once successful, instead of going to the designated website, users do not realize
that they Actually go to the fraudster’s website. The information keyed in during
that session will be Captured and the fraudsters can make their own transactions
at the same time.
• Phishing. One of the primary methods a hacker gains access to account

information is through phishing, or tricking the victim into giving up the
information voluntarily. A hacker might send an e-mail or even call, pretending
to be a representative of the bank and informing you about some irregularities
with your account. All you need to do to sort things out is to provide your
password or other account information to verify your identity. If you ever
receive a communication that appears to be from your bank and requests this
type of information, contact your bank by phone immediately. Do not give out
account information to a caller, and do not click any links provided in any e-
mails that claim to be from your bank. You should also ensure that any
employees with access to the company’s accounts follow the same procedures.
• Keyloggers. Keyloggers are malware programs that record keystrokes and other
data, allowing a hacker to capture your password as you enter it. maintaining
up-to-date antivirus suites on your company computers can prevent these
malicious programs from gaining a foothold, and setting up your network’s
firewall to monitor outgoing traffic can help you determine when an infection
occurs. Many keyloggers and viruses use email to travel from Computer to
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computer, so adding anti-virus protection to your company’s email server can
help filter out these attacks
• Spyware Spyware is the number one way that online banking credentials are
stolen and used for fraudulent activities. Spyware works by capturing
information either on your computer, or while it is transmitted between your
computer and websites. Often times, it is installed through fake pop up ads
asking you to download software. Industry standard Antivirus products detect
and remove software of this type, usually by blocking the download and
installation before it can infect your computer
• VIRUSES. Viruses are designed to compromise your computer systems, and

allow others to gain access to your files, etc. This is different than spyware in
that a virus may search for information considered to be of value, where
spyware will wait for input or action from whomever is using the computer. A
system that is compromised may be used to attack other systems, dying people
legitimate access to services, An example would be the recent activities of the
group called “Anonymous”. This group took over computer systems around the
world, and used them to launch attacks on websites. These types of attacks are
called “denial” of service attacks. One of the most Common scenarios with
viruses is where they will discover financial data such as payroll files, bank
account information, and credit card information. This information is then
transferred to criminals who sell it on the black market or worse use it for
blackmail Criminals can get anywhere from pennies to hundreds of dollars for
each piece of information, depending on what it is and how they Can exploit it.
• Hacking Hacking works similarly to viruses. A “hacker” uses software to probe

for vulnerabilities, and then uses programming techniques, software utilities, or
system commands to exploit the vulnerability. The primary objective is to gain
access to your system. Once this access is obtained, you Can think of it like a
burglary-they search for anything of value and often times leave damage behind.
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More threatening are those hackers who simply take control of your system and
wait to see what information becomes available or what other systems they can
gain access to.
• MAN IN THE BROWSER. Man in the browser is a security attack where the
perpetrator installs a trojan horse on a victim’s computer that’s capable of
modifying that user’s web transactions as they occur in real time. According to
security expert Philipp guhring the technology to launch a man in the browser
attack is both high-tech and high priced. Use of the tactic has been limited to
financial fraud in most cases, due to the resources required. Both Firefox and
internet explorer on windows have been successfully targeted.
• Identity theft- Identity theft refers to all types of crime in which someone
illicitly obtains and uses another person’s personal data through deception or
fraud, typically for monetary gain with enough personal information about an
individual, a criminal can assume that individual’s identity to carry out a wide
range of crimes. Identity theft occurs through a wide range of methods from
very low-tech means, such as check forgery and mail theft to more high-tech
schemes, such as computer spyware and social network data mining. The
following table illustrates well-known social websites that have been attacked.
• Spam: Spam is an electronic ‘junk mail or unwanted messages sent to your

email account or mobile phone. These messages vary, but are essentially
commercial and often annoying in their sheer volume. They may try to persuade
you to buy a product or service, or visit a website where you can make
purchases; or they may attempt to trick you into divulging your bank account or
credit card details.
• Nigerian scam: Nigerian or frauds 409 or 419 are basically the lottery scam in
which some overseas persons are involved to cheat innocent persons or
organizations by promising to give a good amount of money at nominal fee
34
charges. Their intention is to steal money in the form of fee. Against the lottery
prize.
1.17.3 TEN STEPS TO MINIMIZE SECURITY ISSUES
1. Install Latest Security Software: Prevention is better than cure and the same
is true for all online transactions. The World Wide Web is full of malware,
spam and spyware and the best protection to avoid your security being
compromised is to use good antivirus software. One can also seek to purchase
a full version of protection software rather than an anti-virus which can guard
gains phishing, malware and Trojans
2. Use Auto Update for All Software: If you thought your security on the
internet was not at risk thanks to all the protective software that you may have
installed, think again. Even a small glitch in any of the software being used
actively can lead to possible hacking attempt the most commonly hacked
software includes web mail clients and web browsers. Make sure that you
always have updated to the latest version of your browser and mail clients like
thunderbird and Firefox Web browser companies release patches as updates
regularly to cover any such security glitch in the Software. If you find it hard
to manually check and update their software, the best way is to keep the auto
update option enabled for all software in your computer.
3. Look for Encryption Signs: Before entering any confidential information or

sensitive data on any webpage, check if the website us using proper encryption.
Encryption is a security measure that helps protect data while travelling over
the various networks on the internet. The basic sighs of encryption include an
internet protocol or URL address starting with https (where s stands or security)
as well as a sign displayed a closed padlock located in the right corner of the
screen.
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4. Use Different Passwords: A recent study has revealed that majority of the
people use common passwords for a number of transactions including sensitive
transactions like net banking and credit cards for the convenience of
recollecting. Using the same password makes you at high risk, as if hackers can
somehow get access to one password, they would virtually have access to all
your accounts. The best way to keep you safe in the virtual world is to use
unique passwords for different transactions.
5. Cash on delivery option: If any sites are offering cash on delivery option,
don’t hesitate to use it as it is a good safety tip at no cost. Many sites give this
option, but many of us ignore it mainly because of our carelessness in going
through all details.
6. Dealing with Offers: You might be getting lot of promotional mails and
coupons as mails from retail companies. But while utilizing such offers, it is
recommended to go directly to the seller site rather than entering details in the
coupon link, which will be usually sent by third parties.
7. Check Website’s Digital Certificate: Before doing any transaction from

online retailers and merchant websites, make sure to check for safe digital
certificates that can authenticate the website. Independent services like
VeriSign for example is a popular authentication service provider which helps
users to make sure that the website they are dealing with is genuine and not
some fraudulent imposter.
8. Avoid Using Public Computers: Always use personal computers or

electronic gadgets like phones or tablets to complete any financial transaction
over the internet. Never use any public computers on your friend’s mobile for
such sensitive transaction as their security may have been compromise. Also
make sure you always connect to the internet using a secured wife connection
36
which is password protected. Doing financial transactions over a public Wi-Fi
connection is highly unsafe and not recommended.
9. Stay Away from Phishing Emails Seeking Confidential Information: Any

promotional mails from your bank or any third-party websites or vendors
seeking your sensitive banking information must be ignored as spam. A lot of
innocent people have been trapped by such phishing web sites and Emails in
the past coming in the name of banks, RBI, IT department etc. Any mail
seeking your banking information by offering lucrative lottery or content
winnings must never be encouraged.
10. Buy From Reputed Merchants: Doing online transaction from reputed
merchant websites and e-commerce platforms make sure your security is not
compromised
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1.18 COMPANY PROFILE
STATE BANK OF INDIA
The State Bank of India (SBI) is an Indian multinational, public sector banking
and financial services company. It is a government-owned corporation headquartered
in Mumbai, Maharashtra. The company is ranked 216th on the Fortune Global 500 list
of the world's biggest corporations as of 2017. It is the largest bank in India with a 23%
market share in assets, besides a share of one-fourth of the total loan and deposits
market.
The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank
of India, making it the oldest commercial bank in the Indian subcontinent. The Bank of
Madras merged into the other two "presidency banks" in British India, the Bank of
Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India in 1955. The India took control of the Imperial Bank of
India in 1955, with Reserve Bank of India (India's central bank) taking a 60% stake,
renaming it the State Bank of India. In 2008, the government took over the stake held
by the Reserve Bank of India.
38
1.18.1 Internet Banking of State Bank of India
State bank of India is the nation’s largest and oldest bank. Tracing its roots back some
200 years to the British East India Company (and initially established as the Bank of
Calcutta in1806), the bank operates more than 15,000 branches withinIndia, where it
also owns majority stakes in six associate banks. State Bank of India (SBI) has more
than 80 offices in nearly 35other countries, including multiple locations in the US,
Canada, and Nigeria. The bank has other units devoted to capital markets,
fund management, factoring and commercial services, credit cards, and brokerage
services. The Reserve Bank of India owns about 60% of State bank of India.
1.18.2 Key Dates

1806: The Bank of Calcutta is established as the first Western Type bank.
1809: The bank receives a charter from the imperial government and changes its name to
Bank of Bengal.
1840: A sister bank, Bank of Bombay, is formed
1843: Another sister bank is formed: Bank of Madras, which, Together with Bank of Bengal
and Bank of Bombay become Known as the presidency banks, which had the right to issue
Currency in their regions
1861: The Presidency Banks Act takes away currency issuing Privileges but offers incentives
to begin rapid expansion, and the Three banks open nearly 50 branches among them by the
Mid-1870s.
1876: The creation of Central Treasuries ends the expansion Phase of the presidency banks
1921: The presidency banks are merged to form a single entity, Imperial Bank of India.
1955: The nationalization of Imperial Bank of India results in the formation of the State Bank
of India, which then becomes a Primary factor behind the country’s industrial, agricultural, and
Rural development
1969: The Indian government establishes a monopoly over the Banking sector
1972: SBI begins offering merchant banking services 1986: SBI Capital Markets is created
1995 SBI Commercial and International Bank Ltd. Are Launched as part of SBI’s stepped-up
international banking Operations
1998: SBI launches credit cards in partnership with GE Capital
2002: SBI networks 3,000 branches in a massive technology Implementation
2004: A networking effort reaches 4,000 branches
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1.18.3 Subsidiaries
The State Bank Group includes a network of eight banking groups and several non-
banking subsidiaries. Through the establishments, it offers various services including
merchant banking services, fund management, factoring services, primary dealership
in government securities, credit cards and insurance.
The eight banking groups are:
1.State Bank of India
2. State Bank of Bikaner and Jaipur
3. State Bank of Hyderabad
4. State Bank of Indore
5. State Bank of Mysore
6. State Bank of Patiala
7. State Bank of Saurashtra
8. State Bank of Travancore
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1.18.4 General Information
• You should register for online SBI with the branch where you maintain the
account
• If you maintain accounts at more than one branch, you need to register at each
branch separately.
• Normally online SBI services will be open to the customer only after he/she
acknowledges the receipt of password.
• We invite you to visit your account on the site frequently for transacting
business or viewing account balances. If you believe that any information
relating to your account has a discrepancy, please bring it to the notice of the
branch by e-mail or letter.
• In a joint account, all account holders are entitled to register, as users of online
SBI, but transactions would be permitted based on the account operation rights
recorded at the branch. (to begin with the services will be extended only to
single or joint e or s accounts only)
• All accounts at the branch whether or not listed in the registration form, will be
available on the online SBL. However, the applicant has the option to
selectively view the accounts on the online SBI.
1.18.5 Security:
• The Branch where the customer maintains his/her account will assign:
1. User-id &
2. Password
• The User-id and Password given by the branch must be replaced by User
Name and Password of customer's choice at the time of first log-on. This is
mandatory Bank will make reasonable use of available technology to ensure
security and to prevent unauthorised access to any of these services. The
Online SBI service is VERISIGN certified which guarantees, that it is a secure
site.
1. You are dealing with SBI at that moment.
41
2. The two-way communication is secured with 256-bit SSL encryption
technology which ensures the confidentiality of the data during transmission
• These together with access control methods designed on the site would afford
a high level of security to the transactions you conduct. SBI will soon be
implementing PKI/Digital Signature
• You are welcome to access Online SBI from anywhere anytime. However, as
a matter of precaution, customers may avoid using PCs with public access.
• There is no way to retrieve a password from the system. Therefore if a

customer forgets his/her password, he/she must approach the branch for re-
registration
1.18.6 Bank’s terms
1. All requests received from customers are logged for backend fulfilment and
are effective from the time they are recorded at the branch.
2. Rules and regulations applicable to normal banking transactions in India will
be applicable mutatis mutandis for the transactions executed through this site
3. The Online SBI service cannot be claimed as a right the bank may also convert
this into a discretionary service anytime
4. Dispute between the customer and the Bank in this service is subject to the
jurisdiction of the courts in the Republic of India and governed by the laws
prevailing in India.
5. The Bank reserves the right to modify the services offered or the Terms of
service of Online SBI. The changes will be notified to the customers through a
notification on the site.
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1.18.7 Customer’s obligations:
1. The customer has an obligation to maintain secrecy in regard to Username &

Password registered with the Bank. The bank presupposes that login using
valid Username and Password is a valid session initiated by none other than
the customer.
2. Transaction executed through a valid session will be construed by SBI to have
emanated from the registered customer and will be binding on him / her
3. The customer will not attempt or permit others to attempt accessing the Online
SBI Through any unlawful means.
1.18.8 Do’s & Don’ts
• The customer should keep his/her id and password strictly confidential and
should not divulge the same to any other person. Any loss sustained by the
customer due to non compliance of this condition will be at his/her own risk
and responsibility and the bank will not be liable for the same in any manner.
• The customer is free to choose a password of his/her own for online SBI
services. As a precaution a password that is generic in nature, guessable or
inferable personal data such as name, address, telephone number, driving
license, date of birth, etc. Is best avoided. Similarly it is a good practice to
commit the password to memory rather than writing it down somewhere.
• It may not be safe to leave the computer unattended during a valid session.
This might give access to your account information to others
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1.18.9 SERVICES PROVIDED BY SBI INTERNET BANKING
ONLINE SBI (WWW.ONLINESBI.COM): State Bank of India is India’s largest

bank with a branch network of over 11000 branches and 6 associate banks located even
in the remotest parts of India. State Bank of India (SBI) offers a wide range of banking
products and services to corporate and retail customers. „Online SBI‟ is the Internet
banking portal for State Bank of India. The portal provides anywhere, anytime, online
access to accounts for State Bank’s Retail and Corporate customers. The application is
developed using the latest cutting edge technology and tools. The infrastructure
supports unified, secure access to banking services for accounts in over 11,000 branches
across India.
RETAIL BANKING: The Retail banking application is an integration of several

functional areas, and enables customers to:
• Issue Demand Drafts online

• Transfer funds to own and third party accounts
• Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT
feature
• Generate account statements
• Setup Standing Instructions
• Configure profile settings
• Use e-Tax for online tax payment
• Use e-Pay for automatic bill payments
• Interface with merchants for railway and airline reservations
• Avail DEMAT and IPO services
CORPORATE BANKING:
The Online SBI corporate banking application provides features to administer and
manage corporate accounts online. The corporate module provides roles such as
Regulator, Admin, Up loader, Transaction Maker, Authorizer, and Auditor. These roles
have access to the following functions:
44
• Manage users, define rights and transaction rules on corporate accounts access
accounts in several branches with a single sign-on mechanism upload files to
make bulk transactions to third parties, supplier, vendor and tax collection
authorities.
• Use online transactional features such as fund transfer to own accounts, third
party payments, and draft issues make bill payments over the Internet.
• Authorize, modify, reschedule and cancel transactions, based on rights assigned
to the user generate account statement enquire on transaction details or current
balance.
VALUE ADDED SERVICES
• Tax payments to central and state governments through site to site integration.
• Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)
• Direct Debit Facility
• E Collection Facilities for: Core Banking Transactions
• Internet Bank transactions for incoming RTGS/NEFT Transactions
• Internet banking transactions for SBI and associate banks
• Debit facility where suppliers can directly debit their customers account through
internet banking
➢ PRODUCTS & SERVICES

• E-Ticketing
• SBI E-Tax
• Bill Payment
• RTGS/NEFT
• E-Payment
• Fund Transfer
• Third Party Transfer
• Demand Draft
• Cheque Book Request
• Account Opening Request
• Account Statement
45
• Transaction Enquiry
• Demit Account Statement
• Donation
E-TICKETING:
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 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 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 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 select your account. After a
successful debit, Railways will generate the ticket. E-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 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 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 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 India, you
need to select SBI as the payment option. The payment request will be redirected to
46
Internet Banking site. The request may be processed based on values 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 print the E-ticket immediately. To book
bus tickets to destinations in Karnataka, log on to the KSRTC website. Provide details
about the start and end points of your journey, date of journey and number of tickets.
“Online SBI‟ to make the payment. Provide your credentials and select the SBI account
that will be debited for the payment. You are provided a KSRTC reference number for
your e-Ticket
SBI E-TAX
You can pay your taxes online through SBI E-Tax. This facility enables you to pay
TDS, Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty and Fringe
Benefits tax. Click the e-Tax link in the home page. You are displayed a page with two
links Direct Tax and Indirect Tax.
Click the Direct Tax link. You will be redirected to the NSDL site where you can select
an online challan based on the tax you wish to pay. Provide the PAN, name and address,
assessment year, nature of payment and bank name. On selecting the bank name as SBI
and submitting the form, you will be redirected to the Internet Banking site. After
submitting the respective ID and password, you can select your account for making
payment of taxes. After payment is successful you can print the E-Receipt for the
payment.
The E-receipt can be printed at a later date also and the same can be retrieved from:
Enquiries > Find Transactions > Status Enquiries > Click on the respective transaction
to print the tax receipt.
The Indirect Tax link is used to make Central Excise and Service Tax payments to
Central Board of Excise and Customs. The online payment feature facilitates anytime,
anywhere payment and an instant E-Receipt is generated once the transaction is
complete.
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The Indirect Tax payment facility is available to Registered Central Excise/Service Tax
Assesses who possesses the 15 digit PAN based Assesses Code. You can make CBEC
payments using the Indirect Taxes link available in the Payments/Transfers tab. You
need to provide your assesses code as registered with CBEC and select the minor heads
towards which you intend to pay tax. Select the appropriate tax type and enter the tax
amount. Select an account for debiting the total tax amount. You can use any of your
transaction accounts to make the payment. If a payment is successful, CBEC provides
a link to generate an E-Receipt for the payment.
Internet banking customers can pay tax through site to site integration. For government
agencies, which are not Internet-enabled, „Online SBI‟ offers the Government Tax
Payment facility. This facility is available as a post login feature in the retail and
corporate banking sites of the Online SBI portal.
BILL PAYMENT
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
payment you can view and pay various Bills online, directly from your SBI account.
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 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
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the biller, you can 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 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 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 region.
RTGS/NEFT
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 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 secure banking
channels in India. RTGS transaction requests will be sent to RBI 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 date. You can transfer an
amount of Rs.1 lac and above using RTGS system.
49
National 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 credit to the other bank's account.
NEFT transactions are settled in batches based on the following timings 1.6 settlements
on weekdays - at 09:00, 11:00, 12:00, 13:00, 15:00 and 17:00 hrs. 2.3 settlements on
Saturdays - at 09:00, 11:00 and 12:00 hrs.
Please note that all the above timings are based on Indian Standard Time (IST) only.
In order to transfer the funds to an account with other bank, kindly ensure that the bank
branch of the beneficiary is covered under the RGTS/NEFT payment system. It is
recommended that you choose the Bank/ Branch from the drop down option provided
under the link "Add Interbank beneficiary" and exercise care to provide the correct
account number and name of the beneficiary.
E-PAYMENT
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 India
in the payment option.
• LIC PREMIUM: For paying premium of LIC policy 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 invest in the SBI Mutual Fund schemes online.
Logon to www.SBImf.com and select 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 purchase
from a wide variety of products and services through CC Avenue Certified
Vendors. Make payments for your purchases using your Internet enabled SBI
accounts.
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FUND TRANSFER
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 accounts in the same branch
and other branches. To make a funds transfer, you
should be an active Internet Banking user with transaction rights. Funds transfer to PPF
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 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 which the amount is to be credited. Enter the amount and
remarks. The remarks will be displayed in your accounts statement for this transaction.
You will be displayed the 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 option to submit or cancel the funds transfer request. A
reference number will be generated for your record.
THIRD PARTY TRANSFER
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
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 third
party, you need to register your mobile number in personal details link under profile
section.
You will receive 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 be handled by your
branch. Only after approval of third party, you will be able to transfer funds to the third
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party. You can set limits for third party transactions made from your accounts or even
set limits for individual third parties.
DEMAND DRAFT
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, 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 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.
Alternatively, you may request the branch to courier it to your registered address, and
the courier charges will be recovered from you.
CHEQUE BOOK REQUEST
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
books with 25, 50 or 100 cheque leaves. You can either collect it from branch or 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 books will
be dispatched within 3 working days from the date of request.
the 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
leaves required and the mode of delivery. Then, submit the same.
ACCOUNT OPENING REQUEST
“Online SBI” enables you to open a new account online. You can apply for a new
account only in branches where you already have accounts. You should have an INB-
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enabled account 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 accounts of Residents, NRO and NRE types.
the New 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
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 new
account opening request will be processed by the branch.
ACCOUNT STATEMENT
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
your username.
The statement includes the transaction details, opening, closing and 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 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 25, 50, 75, 100 and ALL.
TRANSACTION ENQUIRY
“Online SBI” 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 also be viewed separately. Just log on to retail section of the Internet
Banking site with your credentials and select the Status Enquiry link under the
Enquiries tab.
You will be displayed all online transactions you have performed. To view details of
individual transactions, you need to click the Transaction Reference number link. You
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are displayed the debit and credit account details, transaction amount, narration and
transaction status.
DEMAT ACCOUNT STATEMENT
„Online SBI‟ enables you to view Demit account statement and maintain such accounts.
The bank acts as your depository participant. In the third-party site, you can mark a lien
on your Demit accounts and use the funds to trade on stock using funds in your SBI
savings account. You can view Demit account details, and generate the following
statements: statement of holding, statement of transactions, statement of billing.
DONATION
You can make donation to religious and charitable institution by using Internet Banking
of SBI. Simply log on to http://www.onlineSBI.com/ with your credentials and go to
Payment and transfer and click on make donation link. After selecting the debit account
select the religious/charitable institution that you want to offer donation. After
successful payment you can print an E-receipt for the donation made.
CUSTOMERS PERSPECTIVE
From the customers perspective, it was also decided to collect at least 100
questionnaires from the different branches of SBI in approx. equal representation
therefore, a total of 120 questionnaires were floated in these branches using on
convenience basis. Self-administered approach was applied for data collection and
surveys were completed anonymously and returned to the researchers. At the end total
108 responses were received and finally 100 questionnaires were selected randomly
and analysed through cross tabulation techniques.
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1.18.10 SWOC ANALYSIS OF SBI INTERNET BANKING
Strengths:
• Greater reach to customers

• .Quicker time to market
• Ability to introduce new products and services quickly and successfully
• Ability to understand its customers' needs
• Customers are given access to information easily across location
• Easy online application for all accounts, including personal loans and
mortgage.
• 24 hours account access.
• Quality customer service with personal attention.
Weaknesses:
• Lack of awareness among the existing customers regarding internet bunking

• Obsolesce of technology take place very soon specially in terms of security on
internet.
• Procedure for applying for id and password for using services related to internet
banking takes time.
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• Lack of knowledge is found regarding internet banking in employees of SBI
• Implementation of newer technology is little bit complicated
• Employees needs training to obtain knowledge regarding I-banking
Opportunities: -
• Approximately 95 % of customers are not using internet banking

• Core competency can be achieved in terms of banking if focus is made on
awareness of internet banking
• Can become 1st virtual bank of India.
• Concentration of various services should be made using internet banking
Treats:
• Maintaining Business Edge over competitors in the context of sameness in IT

infrastructure.
• Multiple vendor support is necessary for working of highly complex
technology.
• Maintaining scored rat infrastructure for business operations.
• Alternative must be there in case of failure of system.
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CHAPTER 2: RESEARCH METHODOLOGY
SR.NO. TOPICS
2.1 DEFINATION
2.2 TYPES OF RESEARCH METHODOLOGY
2.3 PROBLEM OF THE STUDY
2.4 INTRODUCTION TO THE STUDY
2.4.1 INTRODUCTION
2.4.2 STATEMENT OF THE STUDY
2.4.3 OBJECTIVE OF THE STUDY
2.5 RESEARCH METHODOLOGY
2.5.1 SAMPLE SIZE
2.5.2 SAMPLE UNIT
2.5.3 SAMPLING TECHNIQUE
2.6 DATA COLLECTION
2.6.1 SOURCES OF DATA
2.7 TOLLS USED FOR DATA COLLECTION
2.8 NEED OF THE STUDY
2.9 HYPOTHESIS OF STUDY
2.10 LIMITATION OF THE STUDY
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CHAPTER 2: RESEARCH METHODOLOGY
The process used to collect information and data for the purpose of making business
decisions. The methodology may include publication research, interviews, survey and
other research techniques, and could include both present and historical information.
2.1 DEFINATION
The research methodology enabled the team to organize their efforts into one cohesive
and conceptual product idea generation task for us.
2.2 TYPES OF RESEARCH METHODOLOGY
1. Quantitative Research This research is based on numeric figures or numbers.

Quantitative research aims to measure the quantity or amount and compares it
with past records and tries to project for future period. In social sciences,
“quantitative research refers to the systematic empirical investigation of
quantitative properties and phenomena and their relationships”. The objective
of quantitative research is to develop and employ mathematical models, theories
or hypothesis pertaining to phenomena.
The process of measurement is central to quantitative research because it
provides fundamental connection between empirical observation and
mathematical expression of quantitative relationships. Statistics is the most
widely used branch of mathematics in quantitative research. Statistical methods
are used extensively with in fields such as economics and commerce. In sum,
the research using the normative approach conducts why may be called
quantitative research as the inferences from it are largely based on quantitative
data. Moreover, objectivity is the primary guard so that the research may be
replicated by others, if necessary. Quantitative can also be called Analytical
Research.
2. Qualitative Research Qualitative research presents a non-quantitative type of

analysis. Qualitative research is collecting, analysing and interpreting data by
observing what people do and say. Qualitative research refers to the meanings,
definitions, characteristics, symbols, metaphors, and description of things.
Qualitative research is much more subjective and uses very different methods
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of collecting information, mainly individual, in-depth interviews and focus
groups.
The nature of this type of research is exploratory and open ended. Small number
of people are interviewed in depth and or a relatively small number of focus
groups are conducted. Qualitative research can be further classified in the
following type.
I. Phenomenology:-a form of research in which the researcher attempts to

understand how one or more individuals experience a phenomenon. Egg: -we
might interview 20 victims of Bhopal tragedy.
II. Ethnography: - this type of research focuses on describing the culture of a

group of people. A culture is the shared attributes, values, norms, practices,
language, and material things of a group of people. Egg: -the researcher might
decide to go and live with the tribal in Andaman island and study the culture
and the educational practices.
III. Case study:-is a form of qualitative research that is focused on providing a

detailed account of one or more cases. Egg: -we may study a classroom that was
given a new curriculum for technology use.
IV. Grounded theory: - it is an inductive type of research, based or grounded in

the observations of data from which it was developed; it uses a variety of data
sources, including quantitative data, review of records, interviews, observation
and surveys
V. Historical research: -it allows one to discuss past and present events in the
context of the present condition, and allows one to reflect and provide possible
answers to current issues and problems. Egg: -the lending pattern of business in
the 19th century.
In addition to the above, we also have the descriptive research. Fundamental

research, of which this is based on establishing various theories Also the
research is classified into:
1. Descriptive research
2. Analytical research
3. Fundamental research
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4. Conceptual research
5. Empirical research
6. One time research or longitudinal research
7. Field-setting research or laboratory research or simulation research
8. Clinical or diagnostic research
9. Exploratory research
10. Historical research
11. Conclusion oriented research
12. Case study research
13. Short term research
2.3PROBLEM OF THE STUDY

The title of this report is “customer review on internet banking services with the
study of SBI Bank. “
2.4 INTRODUCTION TO THE STUDY
2.4.1 Introduction
The banking scenario in India in the post liberalization and deregulation environment
has witnessed sweeping changes. The tremendous advances in technology and the
aggressive infusion of information technology has brought in a paradigm shift in
banking operations. For the banks, technology has emerged as a strategic resource for
achieving higher efficiency control of operations, productivity and profitability. For
customers. It is the realization of their anywhere. Anytime, anyway banking dream.
This has prompted the banks to embrace technology to meet the increasing customer
expectation technology to start with is a business cabler and now has become a business
driver.
The banking institutions cannot think of introducing financial product without
information technology upon be it customer service, transactions, remittances, audit,
marketing pricing or any other activity in the banks. Information technology plays an
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important role not only to complete the activity with high efficiency but also has the
potential innovate and meet the future requirements. Information technology has
therefore introduced new business paradigms and is increasingly playing a significant
role in improving the services in banking industry and the abwe backdrop it becomes
imperative to dwell on the evolution of information technology in hanks before
embarking on the various aspects of e-banking, information
Technology came into picture as curly in the 1980’s in banking industry through the
Nagarajan committee recommendations and banks have given utmost importance to the
technology since the last 25 years. The reserve bank of India is constantly pursuing the
banks from 1980’s to introduce computerization branch level and to improve the quality
of customer service through technology.
E-banking implies performing basic banking transaction by customers round the clock
globally through electronic media. Alternatively electronic banking can be defined us
delivery of hank’s services to a customer his office or home by using electronic
technology and this has resulted in conceptualization of virtual banking. In traditional
hank ing. The customer has to visit the branch of the bank in person to perform the
basic banking operations viz, account enquiry, fund transfer and cash withdrawal. The
brick and mortar structure of a hank essential to perform the banking functions on the
other hand, e-banking cable the customers to perform the basic banking transactions by
sitting at their office or at homes through pc laptop. The customers can access the bank’s
website for viewing their account details and perform the transactions on account as per
their requirements. Thus, today’s banking is no longer confined to branches
Customers are being provided with additional delivery channels which are more
convenient and are cost effective to the hanks. This has resulted in shrinking of
geographical boundaries cays reach the clientele, reliable and secure services. The e-
banking services include automated teller machine, plastic card currency. Internet
banking and electronic clearing services state bank of India is the largest hank with
network of over 15000 branches and associate bank located even n the remote part of
India sly ores a wide range of banking products and services to corporate and retail
customers.
Now a day information technology plays a vital me in banking sector day by day
increasing change in technology world, it leads to improve c-banking services of
various banks. Traditional branch model of bank is now changing into new form of e-
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banking services like kiosk marketing machine, coin vending machines of SBI et. It
provides various advantages to customers
Today people are educated more than olden difuran lives becomes machine oriented
and they don’t have enough time to visit bank branch land ever before. -banking maars
providing banking products and services through electronic delivery channels like
ATM internet banking. Telephone banking and other electronic delivery channels has
over 4500 ATM centres in India approximately, automated teller machine (ATM) is
electronic computerised telecommunication device that allows a customer to directly
use a secured method of communication to access their bank accounts or make cash
withdrawals and other services. Internet banking highly useful to the customer one who
have computer with internet connection, they need not visit bank branch for their
business transactions. Simply they can transact anywhere, anytime if they have internet
connection. By dialling the telebanking number customer can get various facilities like
cheque book request, balance inquiry cite, in this research paper, main emphasis has
been made towards concept of e-banking, awareness of e- banking, most preferred e-
banking services among different age groups in this study we include mobile banking
internet banking tele banking and plastic money data
Has been collected from multiple sources of evidence understand the customer
awareness on e-banking services of SBI.
2.4.2 STATEMENT OF THE STUDY
Today all the banking sectors are providing lot of services to their customers. Although the E-
banking services are offered by all the banks, it is a necessity to study whether all the Banking
customers are aware of the banking services to get the longest satisfaction on the c-banking
channels, a customer should have complete knowledge and awareness on various products
and services offered by the banks and bankers should have the ability to identify the
type of services needed by a customer and render the same his satisfaction, we attempted to
analyse customer’s awareness towards the E banking services offered by the SBI.
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2.4.3 OBJECTIVE OF THE STUDY
• To understand the concept of internet banking and importance, to bank as well
as customer.
• To access the impact of services quality dimensions on customer satisfaction in
internet banking.
• To get aware of various aspect of net banking.
• To build up SWOT analysis of internet banking of SBI.
• To identify the most widely used application of internet banking.
• To find out the drawback of internet banking.
• To evaluate the awareness of E-Banking among the customers of SBI.
• To study the most preferred E-Banking service offered by SBI.
2.5 RESEARCH METHODOLOGY
In a view to precede the research in a systematic way the following research

methodology has been used. By means of obtaining detailed opinion of the customers,
this research falls under the category of descriptive research. This study was conducted
as a survey that examined customers' satisfaction with e-banking services in State Bank
of India.
The methodology adopted in the study is both descriptive and analytical
2.5.1 SAMPLE SIZE

It includes the number of people to be survey. Though huge sample give more reliable
results than small samples but due to constraint of time and money, the sample size was
restricted to 100 respondents. The respondents belong to different age groups.
2.5.2 SAMPLE UNIT

It defines the target population that will be sampled. i.e., it answers who is to be
surveyed. In this stud. The sampling unit is the people of STATE BANK OF INDIA
customer, Mumbai.
2.5.3 SAMPLING TECHNIQUE
63
The data so collected will be analysed through the application of statistical techniques,
such as
Bar graphs and pie charts.
2.6 DATA COLLECTION METHOD

Keeping in view the nature of requirements of the study to collect all the relevant
information regarding the conceptual study on customer satisfaction on internet
banking services provided by SBIbank, direct personal interview method with
structured questionnaire was adopted for the collection of primary data secondary data
has been collected through the various internet sites by surfing on Internet and from the
records available with the bank.
2.6.1 SOURCES OF DATA
• PRIMARY DATA:
Questionnaire was used to collect primary data from respondents. The questionnaire
was structured type and contained questions relating to different dimension of internet
banking.
In order to gather necessary data and also provide profound insight into the topic
Customer awareness on E-Banking services of SBI, the researcher considered the use
of Questionnaire for consumers in most suitable way.
• SECONDARY DATA:
Secondary data was collected from the existing data sources catalogues, internet
Magazine, case studies, newspapers journals, articles are. The information a collective
Has been consolidated in a meaningful manner for the purpose.
2.7 TOOLS USED FOR DATA ANALYSIS
64
• .PERCENTAGE ANALYSIS
The tool used for data interpretation for the study is percentage analysis. By Converting
the received data into percentage and interpreting the results thereof
• PRESENTATION OF DATA
For the meaningful representation of the results obtained from the data we use bar
Diagrams, pie charts and doughnut in this study
2.8 NEED OF THE STUDY

• To determining growth direction of online banking service.
• Promoting E-banking services in banking industry
• Customer perception will be taken into consideration about the internet banking
2.9 HYPOTHESIS OF THE STUDY

• Factors don’t affect the consumer perception towards e-banking services.
• Factors affect the consumer perception towards e-banking services.
• There are no any problems faced by customers while using e-banking
services.
• There are some problems faced by customers while using e-banking services
• Consumers are not satisfied with the e-banking services
• Consumers are satisfied with the e-banking services.
2.9 LIMITATION OF STUDY
65
• In any research conducted there shall be some limitations associated with it.
Hence for the Proper understanding of the project it is inevitable to specify the
limitation of the study
• The study was done in SBI bank and sample size of 100, the credibility of the
project is not Assured
• Personal bias and prejudice of the respondents could have affected the result of
the study.
• Only certain statistical test could be applied to validate the result of the study
• The study is based on quality and originality of secondary data taken through
the official Website of SBI is considered as another limitation of study
Chapter 3: REVIEW OF LITERATURE
66
SR.NO. TOPICS
3.1 HISTORY OF BANKING
3.2 HISTORY OF STATE BANK OF INDIA
3.3 HISTORY OF INTERNET BANKING
3.4 LITERATURE REVIEW
3.1 HISTORY OF BANKING
The history of banking began with the first prototype banks which were the merchants
of the world, who made grain loans to farmers and traders who carried goods between
cities. This was around 2000 BC in Assyria, India and Sumerian. Later, in ancient
Greece and during the Roman Empire, lenders based in temples made loans, while
accepting deposits and performing the change of money. Archaeology from this period
in ancient China and India also shows evidence of money lending.
Many histories position the crucial historical development of a banking system to

medieval and Renaissance Italy and particularly the affluent cities
of Florence, Venice and Genoa. The Bardic and Peruzzi Families dominated banking
in 14th century Florence, establishing branches in many other parts of Europe. The most
famous Italian bank was the Medici bank, established by Giovanni Medici in 1397.
The oldest bank still in existence is Banca Monte die Pascha di Siena, headquartered
in Siena, Italy, which has been operating continuously since 1472. development of
banking spread from northern Italy throughout the Holy Roman Empire, and in the 15th
and 16th century to northern Europe. This was followed by a number of important
innovations that took place in Amsterdam during the Dutch Republic in the 17th
century, and in London since the 18th century. During the 20th century, developments
in telecommunications and computing caused major changes to banks' operations and
let banks dramatically increase in size and geographic spread. The financial crisis of
2007–2008 caused many bank failures, including some of the world's largest banks, and
provoked much debate about bank regulation.
3.2 HISTORY OF STATE BANK OF INDIA:

The roots of the State Bank of India lie in the first decade of the 19th century when
the Bank of Calcutta later renamed the Bank of Bengal, was established on 2 June
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1806. The Bank of Bengal was one of three Presidency banks, the other two being
the Bank of Bombay(incorporated on 15 April 1840) and the Bank of
Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated
as joint stock companies and were the result of royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The Presidency
banks amalgamated on 27 January 1921, and the re-organised banking entity took as
its name Imperial Bank of India. The Imperial Bank of India remained a joint stock
company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank
of India. On 1 July 1955, the Imperial Bank of India became the State Bank of India.
In 2008, the Government of India acquired the Reserve Bank of India's stake in SBI so
as to remove any conflict of interest because the RBI is the country's banking regulatory
authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This
made eight banks that had belonged to princely states into subsidiaries of SBI. This was
at the time of the first Five Year Plan, which prioritised the development of rural India.
The government integrated these banks into the State Bank of India system to expand
its rural outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943) and State Bank
of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired
National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975,
SBI acquired Krishna ram Baldeo Bank, which had been established in 1916 in Gwalior
State, under the patronage of Maharaja Madhu Rao Scandia. The bank had been
the Dukan Pichai, a small moneylender, owned by the Maharaja. The new bank's first
manager was Jell N. Broach, a Parsi. In 1985, SBI acquired the Bank of Cochin
in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank
of Travancore, already had an extensive network in Kerala.
There has been a proposal to merge all the associate banks into SBI to create a single
very large bank and streamline operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven
to six. On 19 June 2009, the SBI board approved the absorption of State Bank of Indore.
SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior to its
takeover by the government hold the balance of 1.7%.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network
of branches. Also, following the acquisition, SBI's total assets will approach ₹10
trillion. The total assets of SBI and the State Bank of Indore were ₹9,981,190 million
68
as of March 2009. The process of merging of State Bank of Indore was completed by
April 2010, and the SBI Indore branches started functioning as SBI branches on 26
August 2010.
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank. Mrs. Bhattacharya received an extension of two years of
service to merge into SBI the five remaining associated banks enterprise. So all firms
are engaged to attract customers and build a long term relationship with them. The
marketer needs to understand fully the working of buyer's mind and use suitable
strategies to create a favourable orientation in the mind of consumers. He must plan his
production and distribution to meet the needs and convenience of consumers rather than
his own.
3.3 HISTORY OF INTERNET BANKING
▪ The term online banking was first started in 80‟s. The term online became popular in
the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to
access the banking system using a phone line. Home banking‟ can also refer to the use
of a numeric keypad to send tones down a phone line with instructions to the bank.
Online services started in New York in 1981 when four of the city’s major banks
(Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home
banking services using the videotext system. Because of the commercial failure of
videotext these banking services never became popular except in France where the use
of videotext was subsidized by the telecom provider and the UK, where the Prestel
system was used.
▪ The UK‟s first home online banking services was set up by the Nottingham Building
Society (NBS) in 1983. The system used was based on the UK's Prestel system and
used a computer, such as the BBC Micro, or keyboard (Tan data Td1400) connected to
the telephone system and television set. The system (known as 'Home link') allowed
on-line viewing of statements, bank transfers and bill payments. In order to make bank
transfers and bill payments, a written instruction giving details of the intended recipient
had to be sent to the NBS who set the details up on the Home link system. Typical
recipients were gas, electricity and telephone companies and accounts with other banks.
Details of payments to be made were input into the NBS system by the account holder
via Prestel. A cheque was then sent by NBS to the payee and an advice giving details
69
of the payment was sent to the account holder. BACS was later used to transfer the
payment directly.
▪ Stanford Federal Credit Union was the first financial institution to offer online internet
banking services to all of its members in Oct, 1994. Later on it was adopted by
worldwide banks
State bank of India is the nation’s largest and oldest bank. Tracing its roots back some
200 years to the British East India Company (and initially established as the Bank of
Calcutta in 1806), the bank operates more than 15,000 branches within India, where it
also owns majority stakes in six associate banks. State Bank of India (SBI) has more
than 80 offices in nearly 35 other countries, including multiple locations in the US,
Canada, and Nigeria. The bank has other units devoted to capital markets, fund
management, factoring and commercial services, credit cards, and brokerage services.
The Reserve Bank of India owns about 60% of State bank of Indi
3.4 Internet-Banking
Historically, the launching of the first Automated Teller Machine (ATM) in Finland
marked the start of a new banking channel, which made Finland the leading country in
E-Banking, before it became widely used in any other developed and developing
countries (H. Sharma, 2011). More recently, E-Banking, or the distribution of financial
services via electronic systems, has spread among customers due to rapid improvement
in IT and through competition between banks (Mahdi, Rehaul, & Rahman, 2010).
Lutsk (2004) defines E-Banking services as a variety of e-channels for doing banking
transactions through Internet, telephone, TV, mobile, and computer. Banking
customers’ desires and expectations with regard to service are expanding, as technology
advances and improves. These days, the customer wants to operate and do his or her
banking transactions at any location without going to the bank, at any time without
being limited to the bank’s working hours, and to do all his or her payments
(purchasing, bills, stocks) in a fast and cost-effective way. Consequently, financial
services quality ought to be characterized by independence, elasticity, freedom, and
flexibility, to accommodate these desires (Khalfan & Alshaya, 2004).
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In Lebanon, E-Banking is still mostly limited to the Internet and mobile telephones.
This is due in part to slow development of IT infrastructure in the country. With that in
mind, we are defining the concept as the ability to conduct banking and financial
transactions electronically via the Internet or mobile telephone applications.
Customer Satisfaction
Customer satisfaction is one of the most important concepts in the field of marketing
studies today (Jamal, 2004). Broadly speaking, it links processes culminating in
purchasing with post purchase phenomena such as attitude change, repeat purchase, and
brand loyalty (Churchill & Superman, 1982). Oliver (1980) explains that the feeling of
satisfaction arises when customers compare their perception of actual product/service
performance with expectations.
A number of varying definitions have been proposed to clarify customer satisfaction.
Yet the notion of comparing post product/service performance with pre-formed
expectations seems to be common to most definitions. Oliver (1981) defines
satisfaction as an emotional post consumption evaluative judgment concerning a
product or service. Similarly, Tso and Wilton (1988) defined customer satisfaction as a
“consumer response to the evaluation of the perceived difference between expectations
and final result after consumption” (p. 204). Satisfaction can also be described as the
feedback of a post purchase assessment of certain service/product’s quality, and
compared with the expectation of the prior-purchasing stage (Kotler & Keller, 2011).
In contrast, other researchers have observed that the impact practiced within the
purchasing and consuming stage of the product/service may also have an important
effect on the customer’s judgments toward satisfaction (Homburg, Koshare, & Hoyer,
2006). Thus, customer satisfaction is a customer’s feeling of pleasure or displeasure
after he or she has distinguished a performance of a product/service with respect to his
or her expectancy (Keller & Lehmann, 2006).
Consistent with these definitions, and in so far as this study is concerned, customer
satisfaction is the attitude of the customer formulated in response to using any form of
E-Banking services. Accordingly, E-Banking attributes may increase, decrease, or keep
the same customer satisfaction.
Customer Satisfaction and E-Banking
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One main objective of this research is to understand to what extent the quality of
electronic services offered by banks would affect the satisfaction of the customer in the
Lebanese banking sector. According to Greenrooms (1998), there is a steady and
positive relationship that gathers both the E-service quality and customer satisfaction.
Indeed, Parasuraman, Zeithaml, and Berry (1988) also conclude in a study that the
relationship between quality of service and customer satisfaction is very sturdy and
durable (Parasuraman et al., 1988). To check this relationship, Jain modifies it in an
easier formula and reaches the conclusion that great customer satisfaction immensely
depends on receiving a better and higher quality service (Jain & Gupta, 2004).
A number of additional studies point out to a relationship between customer satisfaction
and E-Banking services. In their research, Saiyan and Isola (2018) demonstrated that
the satisfaction degree of customers in the banking sector increases when using E-
Banking services (Saiyan & Isola, 2018). Similarly, Jayaweera and Neely
(2003) verified that the quality of E-service is the first step of customers’ satisfaction
(Jayaweera & Neely, 2003). Likewise, research conducted in the banking sector by Bei
and Chiai (2006)recognized a major relationship between the quality of the service and
the customer satisfaction degree of customers. Finally, Zhou (2004) stated that the E-
Banking service quality related to reliability has a significant effect on the degree of
customer satisfaction.
Dimensions of E-Banking Service Affecting Customer Satisfaction
With a number of studies converging to show a relationship between E-Banking service
and customer satisfaction, the question becomes the following: What aspects or
dimensions of E-Banking service affect customer satisfaction and in what ways? Our
review of the literature reveals that these aspects could be grouped under efficiency,
reliability, privacy and security, and responsiveness and communication.
Speed in performing E-Banking services is a determining factor of customer
satisfaction according to Parasuraman, Zeithaml, and Berry (1985). Efficiency in terms
of quick speedy service is also confirmed by Wirtz and Bateson (1995) and Khadim
and Mousavi (2013). Liao and Cheung (2002) find reliability as one of the most
important features that customers seek in evaluating their E-Banking service quality. A
similar result was also obtained in an empirical study done by Ettinger and Lee (2005).
With respect to privacy and security, a number of elements were identified and studied
by researchers including maintaining the confidentiality of operations, refraining from
72
sharing personal information, and insuring a good level of security for the customer’s
information (Agarwal, Rastogi, & Mehrotra, 2009; Datta, 2010; Poon, 2007).
According to Made and Made (2002), responsiveness is the readiness to support the
bank’s customers and deliver them a rapid service. This kind of service can be shaped
into four forms. First, the E-Banking system can control and operate the service
properly. Second, the E-Banking channels can guide customers toward proceeding
properly in case of any failing operations. Third, it can also cover a rapid solution for
any possible error in E-Banking transactions. Finally, it can support the customer’s
questions with on-the-spot response.
Picarian, Karafuto, and Panela 2004 define Internet banking as an ‘Internet portal,
through which Customers can use different kinds of banking services ranging from bill
payment to making Investments’. With the exception of cash withdrawals, Internet
banking gives customers access to almost Any type of banking transactions at the click
of a mouse. The use of the Internet as a new alternative Channel for the distribution of
financial services has become a competitive necessity instead of just a Way to achieve
competitive advantage with the advent of globalization and fierce competition (Flavian,
Torres, & Genial, 2004; Gan, Climes, Limsombunchai, & Weng, 2006) [8].
Rueangthanakiet Pairot, 2008 defined Customer ‘s satisfaction as the company’s ability
to fulfil the business, emotional, and Psychological needs of its customers. However,
customers have different levels of satisfaction as they Have different attitudes and
experiences as perceived from the company. Customer’s satisfaction is Affected by the
importance placed by the customers on each of the attitudes of the product/ service.
Customer satisfaction measurement allows an organization to understand the key

drivers that create Satisfaction or dissatisfaction; and what is really driving their
satisfaction during a service experience. When customers pay money to buy a service
he has some minimum expectations from the transaction. These expectations for the
purchase have to be met substantially, if not entirely for the customer to Become a loyal
customer of the service (Akbar and Parvez, 2009) [1]. These expectations are fulfilled
of A promise- quality, fair price, availability, after sale services, complaints handling
process, information, And variety etc. the customers are demanding high quality of
services and low prices or charges. Better Quality for the same cost is the motto of the
customers.
73
The concept of “Customer or User Satisfaction” as a key performance indicator within
the businesses Has been in use since the early 1980s (Bailey & Pearson 1983; Ives,
Olson, & Baroudi 1983) [2] Similarly, the end user computing satisfactions have been
studied since the 1980 (Bailey & Pearson 1983; Chin, Diehl, & Norman 1988; Ives et
al., 1983; River & Huff 1988). The user satisfaction can be Seen as the sum of the user’s
feeling and attitudes toward several factors that affect the usage situation (Bailey et al.,
1983) [2].
End user experience has become an important factor in internet-based businesses

because the end user Often pays for the majority of new products and services.
Therefore, new product characteristics such as Perceived ease of use, quality, aesthetics,
appeal and value for money must be matched or exceeded with Customer expectations
toward the product (Wilson & Sassed 2004). Therefore, assessing customer Satisfaction
has become very important, especially for high tech products and services. In general,
Customer satisfaction has been measured using questionnaire scales for which either a
Likert or a Semantic differential scale has been used.
A study by (Picado, Gonzalez & Eckel man 2004) investigated customer satisfaction in
the service Industries using quality function deployment (QFD). They considered both
external and internal service Management issues and subsequent service innovations
based on the framework of QFD. The study also Includes benefits and disadvantages
of the QFD process as compared to service quality and customer Paradigms, in addition
to recommendations for future applications, with particular interest in the online
Banking service management issues.
Various research studies on consumer attitude and adoption of internet banking have
shown that there Are several factors influencing the consumer’s attitude towards online
banking such as person’s Demography, motivation and behaviour towards different
banking technologies and individual acceptance of new technology. It has been found
that consumer’s attitudes toward online banking are influenced by the prior experience
of computer and new technology (Lafora and Li 2005) [20].
74
As far as online banking Adoption is concerned, security, trust and privacy concerns
have been outlined as extremely important Ones from the consumer’s standpoint
(Beninati and Serve 2007) [4]. Online banking requires perhaps the most consumer
involvement, as it requires the consumer to maintain and regularly interact with
Additional technology (a computer and an Internet connection) (Jane et al, 2004).
Consumers who use e-Banking use it on an ongoing basis and need to acquire a certain
comfort level with the technology to Keep using it (Servo, and Kastner 2008) [31]. The
service quality attributes that banks must offer to encourage consumers to switch to
online banking Are perceived usefulness, ease of use, reliability, security, and
continuous improvement (Liao and Cheung 2008) [22]. In another study (2002), they
also found that individual expectations regarding Accuracy, security, user involvement
and convenience were the most important quality attributes in the Perceived usefulness
of Internet based e-retail banking [22]. A study by (Ibrahim et al, 2006), revealed six
Composite dimensions of electronic service quality, including the provision of
convenient/accurate Electronic banking operations; the accessibility and reliability of
service provision; better queue Management; service personalization; the provision of
friendly and responsive customer service; and the Provision of targeted customer
service. Perceived usefulness, security and privacy are the most influencing factors to
accept online banking (Qureshi et al, 2008)
There have been a lot of studies conducted in the field customer satisfaction towards
banking services both at national and international level. Some of the previous related
research students are given below.
Auerbach, Moutai (2005) studied how analyse comfort levels and attitude of users
towards online banking facilities. The findings resulted that there is a correlation
between attitude towards e-banking and feeling of security with regard to their
demographic variables.
75
Siren, Jennifer (2008) pointed out that a positive relationship between the level of
financial Infrastructure and the level of competition and a negative relationship between
the degree of State ownership in a banking sector and the level of competition.
Reynolds, John (2007) said that 2006 e-banking technology services industry customer
Loyalty survey data results in order to improve marketing resource allocation for
corporate E-banking products and services.
Huang, Haribo (2005) reveals that the successful introduction electronic money and
banking Services depends mainly on people acceptance. The major finding is that
although e-banking customers more or less have some common characteristics, they
differ across different types of e-banking services.
Taft, Jeanette (2007) pointed out that Technology Acceptance Model (TAM) as
applied to a specific type of technology: e-banking. They suggested that e-banking-
prior training, Perceived ease of use of e-banking technology
Jeon, Kyong (2014) have said that consumer prefer larger banks in Unsecure they have
to reduce their transportation cost by way of larger banks have multiple ATM centres
across the Country
Lee, jihyun (2003) examined that to identify whether customer intention affecting to
use Online financial services. The effects of attitude toward behaviour subjective nom
were examined. Demographic variables were included a control variables.
Ding, Xin (2007) reveals that consider for research consumer behaviour on internet in
the last years. The findings conclude that customer behaviour from self-service Service
quality and experience design perspectives
76
Wadmalaw, Tom (2006) said that whether internet banking strategies were aligned
with the bank’s core business based or not identified Feather man.
Mauricio Sanchez (2002) studied the perceived risk inhibited
Massed, Nelson (2003) contributed at a theoretical level by providing deeper

understanding of the transactions between customers and service providers.
Yee Yen, Vue (201) have said the comparison between factors affecting consumer
acceptance of internet banking services between developed and developing countries.
Racer, Kelton (2002) examined that bankers and consumers are both interested in the
potential for internet banking. The Findings show that banks to have been developing
their infrastructure to address what they perceive as a growing demand for online
services.
Yousafzai, Shuaiba Yakub Khan (2005) has said that to develop conceptual model
that determines how intentions towards the use of internet banking are formed and to
what extent they are related to the actual use of internet banking
Cuba Din eke, Francis (2009) indicated that advances in information technology and
telecommunications are resulting in new delivery channels for bank products and
services in the developing countries Nor,
Khalil (2005) results indicate that the model provides a good understanding of factors
that influence the intention to use internet banking
Chemise (2012) studied that will increase our understanding it financial, accounting,
management of information system, business administration and decision making
related to the adoption of Internet banking in Mainland China
Adam, Khairul Amalia (2000) indicated that Malaysian banks could be grouped into
two in regard to their reasons for adopting the electronic delivery systems
M., Service quality in the banking sector: the impact of technology on service delivery,
(1999) The study investigates role of technology on Australian banking sector and 300
customers were surveyed. The findings suggested that except from convenience
77
accuracy and efficiency e banking services did not match with importance rating
specified by customers
Jamal, (2002) The study examined key drivers of customer satisfaction using 167
customers and it was found that core and relational performances had influence on
pleasure of bank consumer and were consuming adverse association in-between
consumer proficiency along with consumer gratification. The research provides key
points for the review of next generation of banking
78
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
Q.1) AGE:
Particular frequency percentage

Below 18 Years 10 9.40%
18-40 Years 84 79.20%
41-50 Years 6 5.70%
51 Years & Above 6 5.70%
AGE
5.70%
5.70% 9.40%
79.20%
Below 18 Years 18-40 Years 41-50 Years 51 Years & Above
INTERPRETATION
As per the graph, when I did survey of 106 people, I came to know in the below 18
there were 10 people who was SBI bank account. I also came to know that in the group
of 18-40 there are 79.2% people followed, 5.70% people from the group of 41-50 years,
and 5.70% people from 51 & above group.
79
Q. 2) GENDER BASIC ANALYSIS:
PARTICULAR FREQUENCY PERCENTAGE
FEMALE 54 50.90%
MALE 52 49.10%
GENDER
49.10% 50.90%
FEMALE MALE
INTERPRETATION
Data collected from 106 respondents, out of 104 respondents perform online banking
and this is represented by a column chart with male and female basis analysis. It is
good for the banks as most of the respondents are aware of the internet banking and
all the services have enjoyed them be ing offered by banks.
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Q. 3) EDUCATIONAL PROFILE:

SSC / HSC 36 34%
GRADUATE 40 37.74%
UNDER GRADUATE 34 32.10%
OTHER 1 0.90%
EDUCATION
SSC / HSC GRADUATE UNDER GRADUATE OTHER
INTERPRETATION
Among 106 respondents there are maximum people are graduate who are using
internet service provided by SBI. 34% are SSC/HSC student who are using internet
banking, 37.74% respondents are graduate people, respondent who are under graduate
are 32.10% using internet banking, others are only 1%. It means people are more
educated are prefer internet banking.
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Student 53 50%
Service 16 15.10%
Govt. Employee 5 4.70%
Private Employee 18 17%
Self-Employee 10 9.40%
Retired 4 3.80%
Q. 4) OCCUPATION BASIS ANALYSIS:
Occupation
3.80%
9.40%
17%
50%
15.10%
4.70%
Student Service Govt. Employee Private Employee Self Employee Retired
INTERPRETATION
Among 106 respondents 50% are students, 15.10% are service people, only 4.70% are
pursuing govt employee, 17% of the are private employees who use internet banking,
9.40% are self-employed, 3.80% are employees work are retired but using the internet
service provided by SBI.
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Q. 5) ARE YOU AWARE OF INTERNET BANKING, DO YOU USE
INTERNET BANKING?
This question was asked to respondents about “Do you aware of internet banking, if
yes then do you use internet banking?” & the reply of respondents is summarized as
below.
YES 101 95.30%
NO 5 4.70%
AWARNESS OF INTERNET BANKING
4.70%
95.30%
YES NO
INTERPRETATION
To know the how many consumers are aware of internet banking services. Here out of
106 SBI bank respondent, 101 people are aware of internet banking, and they are
using internet banking for there daily use of banking services.
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Q. 6) DO YOU THINK INTERNET BANKING IS BETTER SUBSTITUTE OF
TRADITIONAL BANKING SYSTEM?

YES 101 95.30%
NO 5 4.70%
INTERNET BANKING IS BETTER SUBSTITUTE

OF TRADITIONAL BANKING
4.70%
YES
95.30%
NO
INTERPRETATION
It was witnessed that most of the respondent preferred using internet banking over
there traditional banking system. Thus, internet banking has a bright future ahead.
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Q.7) DO YOU THINK THAT BANK CATERS ALL YOUR BANKING
NEEDS?
OBJECTIVE: To know how many consumers are satisfied with SBI banking need.

YES 96 90.60%
NO 10 9.40%
9.40%
90.60%
YES NO
INTERPRETATION
Here out of 106 respondent 96 people satisfied with banking needs which is 90.60%
and 10 people are not satisfied with banking nerds which is 9.40%. So that 90.60%
SBI account holder are the most prefer SBI Banking need.
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Q. 8) HOW FREQUENTLY DO YOU USE INTERNET BANKING FACILITY
PROVIDED BY SBI?

Daily 8 7.50%
Once In a Week 19 17.90%
Twice In a Week 20 18.90%
Once In a Month 44 41.50%
Twice In a Month 15 14.20%
14.20% 7.50%
17.90%
41.50% 18.90%
Daily Once In a Week Twice In a Week Once In a Month Twice In a Month
INTERPRETATION
Most of the people do not need the service of banking regularly. They may transact
with banks on monthly basis and weekly basis. This chart shows the habits of people
in case of use of internet banking.
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Q. 9) WHAT ARE THE FACILITIES YOU PURSUE IN INTERNET
BANKING?
Objective: To know which of the internet banking service SBI account holders like
to use.

Payment / Transfer 77 72.60%
Bill Payment 81 76.40%
Request / Enquiry 24 22.60%
Demit 7 6.60%
NEFT / RTGS 27 25.50%
6.60% 25.50%
72.60%
22.60%
76.40%
Payment / Transfer Bill Payment Request / Enquiry Demat NEFT / RTGS
INTERPRETATION
Data collected from 106 respondent, here bill payment and payment/ transfer in
internet banking services provided by SBI bank are most accepted by the people with
72.60% and 76.40% in terms of facilities SBI holder like to u use.
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Q. 10) KINDLY RATE THE FOLLOWING OF YOUR INTERNET BANKING
SERVICES.
Objective: To examine how much give to the online features by the SBI account
holders.
PARTICULAR Excellent Good Average Poor

Fund Transfer 50 37 19 0
SBI E-Tax 20 55 30 1
Balance 45 43 17 1
Enquiry
E-Ticketing 38 52 16 0
Bill Payment 49 44 11
Request a 19 46 36 5
Demand Draft
RTGS/NEFT 25 48 32 1
Online 60 34 11 1
shopping
INTERPRETATION
Here the rate of Internet banking services is most preferring SBI bank account holders
are mostly used internet banking for fund transfer and online shopping.
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89
Q. 11) WHICH OF THE FOLLOWING BENEFITS ACCRUE TO YOU
WHILE USING INTERNET BANKING?

Easy Fund Transfer 66 62.30%
Time Saving 75 70.80%
Inexpensive 29 27.40%
Easy Processing 36 34%
Access Bile 24*7 60 56.60%
56.60% 62.30%
34%
70.80%
27.40%
Easy Fund Transfer Time Saving Inexpensive Easy Processing Accessible 24*7
INTERPRETATION
From the above data it Is clear that most of the customer (around 70.80%) of SBI
bank people are using internet banking for pursuing the benefit for time saving and
easy fund transfer. Time saving is the main benefit which online banking user seen
among other option.
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Q. 12) WHICH TYPE OF PROBLEMS ARE YOU FACING WHILE
INTERNET BANKING SERVICES PROVIDED BY SBI?
PARTICULR FREQUENCY PERCENTAGE

More Time Taking in Fund 36 34%
Transfer
Slow Speed In Working 52 49.10%
Critical process 37 34.90%
Other 21 19.80%
19.80%
34%
34.90%
49.10%
More Time Taking in Fund Transfer Slow Speed In Working Critical process Other
INTERPRETATION
When the question was asked about the problem facing related to internet banking
services provided by SBI. Among 106 respondents are facing slow speed problem
with 49.10%, critical process facing by 34.90% respondents, while fund transfer
people are facing less problem with 34%.
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Q.13) WOULD YOU RECOMMENDED TO SBI BANK TO YOUR FRIENDS
AND RELATIVES?
YES 95 89.60%
NO 11 10.40%
10.40%
89.60%
YES NO
INTERPRITATION
When the question was asked whether the SBI customers are comfortable to
recommend their bank to others than 89.60% people agreed to that and 10.40% people
did not agree.
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Q.14) WILL YOU ADVICE TO USE INTERNET BANKING SERVICES?
YES 105 99.10%
NO 1 0.90%
0.90%
99.10%
YES NO
INTERPRETATION
From the above data it clear that most of the customer enjoys the internet banking
services. Around 99.10% people are agreed to advice the internet banking services to
others.
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Q. 15) OVERALL RATING IN INTERNET BANKING SERVICES?

1 1 0.90%
2 5 4.70%
3 24 22.60%
4 45 42.50%
5 31 29.20%
OVERALL RATING
0.90%
4.70%
29.20%
22.60%
42.50%
3 4 5
INTERPRETATION
The satisfaction level of people with the online banking services of banks has a mixed
review. When the question was asked about the overall satisfaction of SBI than it was
found that more 42.50% of people rated 4 over rating from 1-5.
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Chapter 5: Conclusion & Suggestions
SR.NO. TOPICS
5.1 PROJECT FINDINGS
5.2 RECOMMENDATION & SUGGESTIONS
5.3 CONCLUSION
5.1 PROJECT FINDINGS
• From this project it is found that most of the people are satisfied with the
services of the SBI bank.
• Maximum people will recommend their bank to other people.
• Majority of the respondents are female when compared to male in dealing with
SBI Bank
• Maximum people are from 18-40 age group in dealing with SBI bank among
106 Respondents.
• Most of respondents are Students are using internet banking services as near
about 53 Respondents are using Internet Banking services.
• Among the 106 respondent 101 people are aware about internet banking and
they are using the internet banking services of SBI Bank.
• SBI is considered the fastest Bank. And maximum people are response to yes
to the services provided by SBI Bank are caters all banking needs.
• Most of the respondents are either graduate or under graduate.
• Time saving is the main benefit which online banking users have seen among
other options
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5.2 Recommendations & Suggestions:
• Training and awareness among employees:
It is recommended that State Bank of India should conduct various training programmes
for the employees, so that they will get aware with the terms of internet banking. After
such programmes they can create awareness amongst the consumers.
• Exchange of information on threats and vulnerabilities at appropriate

forums:
There should be an open end discussion on the threats and vulnerabilities coming across
the functioning of internet banking work by the employees in the various official forums
and meet.
• More stress should be given on security concern on Internet:
There are some people who are into unethical practices of hacking of accounts of
customers. This is nothing but the breach in the security of the SBI on internet. There
should be some measures in order to prevent such practices. IT structure should be
unbreakable.
• The management of SBI should conduct more product and services awareness
campaign
• They should increase the level of providing personal attention to individual
customers
• Banks should obey the RBI norms and provide facilities as per the norms. But
this Are not completely followed by the banks. Some of our respondents
complained That their bank does not give feedback of online transaction in
proper times. If Customers do not get proper feedback then their interest in
online services will be Reduced So bank should take proper steps to build their
feedback services.
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5.3 Conclusion
Studying the project we came to know that internet banking is clearly the way forward
for the state bank of India. It provides comfort to customers at the same time it provides
cost cutting to SBI by eliminating physical documentation. Internet banking saves time
of bank as well as those of customers.
Study sites that internet banking provides greater reach to customers. Feedback can be
obtained easily as internet is virtual in nature. Customer loyalty can be gain. Personal
attention can be given by bank to customer also quality service can be served. Bank
should know that no system is perfect, however a system of such a type will need to be
very secure. This is a system which holds account details and customers wealth. If such
a system was not trusted and not reliable, then SBI would face serious laws and would
lose business.
After studying the swot analysis, we came to know various strengths of SBI such as
quality customer service, greater reach, customer loyalty, easy access to information,
24 hours access, easy online applications etc. SBI should put efforts to multiply the
number of strengths. In terms of weakness I come to know some of the major
weaknesses they are lack of awareness of internet banking among the customers,
obsolesce of technology related to security, complicated procedures of avail internet
banking facilities, lack of knowledge among the employees of SBI should concentrate
on the weaknesses and reduce them to zero.
In the third segment of swot analysis of internet banking we dealt with opportunities
like 95 % market of internet market is untapped, SBI’s path to become first virtual bank.
By encashing such opportunities bank can become the leader in banking sector of India.
In the last segment come to know about various challenges which are in front of SBI,
like sameness in its infrastructure within various banks, need of various vendor supports
for complex technology, maintaining secured it infrastructure, alternative mechanism
in case of failure of present security system. The company can take the advantage of
the reputation it has created in the market for itself and become more competitive
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The use of Information Technology in banking enables the banks to provide
Any Time Banking, Customer Service, Telebanking, Home Banking, Plastic
Card Services, etc., facilities. However, these facilities along with certain
Advantages these have certain disadvantages too.
A successful internet banking solution offers:
• Exceptional rates on saving, cash deposits, free bill payment & rebates On ATM
surcharges
• Inexpensive charges
• 24 hours account access
The recommendation and suggestion given, if adopted will improve the position of the
company subsequently and optimal profitability coupled with better service and
satisfaction for investor may be achieved.
98
REFERENCE
www.wikipedia.in
www.SBI.co.in
www.slideshare.net
www.scribed.in
www.investopedia.com
www.SBIonline.com
99
APPENDIX
Q. 1) NAME OF THE CUSTOMER: __________________________________
Q. 2) AGE:
o Below 18 years
o 18-40 years
o 41-50 years
o 51 years & above
Q. 3) GENDER:
o Female
o Male
Q. 4) EDUCATION:
o SSC / HSC
o Under graduate
o Graduate
o Other
Q. 5) OCCUPATION:
o Student
o Service
o Govt. employee
o Private employee
o Self employed
o Retired
100
Q. 6) ARE YOU AWARE OF INTERNET BANKING, DO YOU USE
INTERNET BANKING?
o Yes
o No
Q. 7) DO YOU THINK INTERNET BANKING IS BETTER SUBSTITUTE OF

TRADITIONAL BANKING SYSTEM?
o Yes
o No
Q. 8) DO YOU THINK THAT YOUR BANK CATERS ALL YOUR BANKING

NEEDS?
o Yes
o No
Q.9) HOW FREQUENTLY DO YOU USE INTERNET BANK FACILITY

PROVIDED BY SBI?
o Daily
o Once in a week
o Twice in a week
o Once in a month
o Twice in month
Q. 10) WHAT ARE THE FACILITIES YOU PURSUE IN INTERNET

BANKING?
o Payment / Transfer
o Bill payment
o Request / Enquiry
o Demat
o NEFT / RTGS
101
Q.11) KINDLY RATE THE FOLLOWING OF YOUR INTERNET BANKING
SERVICES
PARTICULAR EXCELLENT GOOD AVERAGE POOR
fund transfer
SBI E-Tax
Balance enquiry
E-Tickiting
Bill payment
Request a
demand draft
Online shopping
Q. 12) WHICH OF THE FOLLOWING BENEFIT ACCRUE TO YOU WHILE

USING INTERNET BANKING?
o Easy fund transfer

o Time saving
o Inexpensive
o Easy processing
o Accessible 24*7
Q. 13) WHICH TYPE OF PROBLEMS ARE YOU FACING WHILE

INTERNET BANKING SERVICES PROVIDED BY SBI?
o More time taking in fund transfer

o Slow speed in working
o Critical process
o other
102
Q.14) WOULD YOU RECOMMENDED TO SBI BANK TO YOUR FRIENDS
AND RELATIVES?
o Yes
o No
Q.15) WILL YOU ADVICE TO USE INTERNET BANKING?
o Yes
o No
Q. 16) GIVE YOUR OVERALL RATING IN INTERNET BANKING

SERVICES.
1 – 5 Rating scale (1 poor – 5 excellent)
103

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TO STUDY OF CUSTOMER SATISFACTION ON INTERNET BANKING

SERVIES WITH THE

STATE BANK OF INDIA

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE

BACHELOR OF ACCOUNTING AND FINANCE

UNDER THE FACULTY OF COMMERCE

PRIYANKA SANTOSH ANGRE

UNDER THE GUIDANCE OF

VALIA C.L COLLEGE OF COMMERCE

D.N.NAGAR, ANDHERI (WEST), MUMBAI 400053

STATE BANK OF INDIA

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE

BACHELOR OF ACCOUNTING AND FINANCE

UNDER THE FACULTY OF COMMERCE

PRIYANKA SANTOSH ANGRE

UNDER THE GUIDANCE OF

VALIA C.L COLLEGE OF COMMERCE

D.N.NAGAR, ANDHERI (WEST), MUMBAI 400053

Priyanka Santosh Anger

Name and signature of the learner

Name and signature of the Guiding Teacher

Chapter 1: Introduction page no 1

Chapter 2: Research Methodology

Chapter 3: Review of Literature

Chapter 4: Data Analysis and Interpretation

Chapter 5: Suggestion & Conclusion

1.2 Definition of Bank

From a business structure perspective, most of the Banks are corporations or

1.4 Types of Banks:

Banks provide a multitude of financial services beyond the traditional practices of

Convenience: With banks, there's

Security: Banks follow stringent

Financial Future: As individual you'll have access to financial professionals to help

1.6 Functions of Banks

c. Current Deposits: This type of account is operated by businessmen. Withdrawals

2. Granting of Loans and Advances

d. Discounting of Bill of Exchange: The bank can advance money by discounting or

B. Secondary Functions of Banks

f. Other Agency Functions: They act as trustees, executors, advisers and

2. General Utility Functions

f. Social Welfare Programmes: It undertakes social welfare programmes, such as

g. Other Utility Functions: It acts as a referee to financial standing of customers. It

a. Blockchain Technology: Blockchain technology is set to fundamentally transform

c. Apple Store-Style Experience: The in bank experience of the might be more

1.9 Differences between Internet Banking and Traditional Banking

Basis of Traditional Banking Internet Banking

Internet as a communication medium and as a repository of information has caught

1.11 INTERNET BANKING

Internet Banking can be defined as a facility provided by banking and financial

1.12 INTERNET BANKING SYSTEM:

1.13 TYPES OF INTERNET BANKING OR E-BANKING

1.14 Seven Best Online Features

1 Easy account creation

3. Automatic Bill Payments

4. Mobile Check Deposits

5. Secure Message Alerts

6. Report & Management Tools

7. Desktop Software Integration

1.15 Advantages & Disadvantages of Internet-Banking