Project Report

(Submitted for the Degree of B.Com. (Honours) in

Accounting & Finance under University of Calcutta)

Title of the Project

A PROJECT REPORT ON ICICI ONLINE

BANKING

(B. Com. Semester-VI)

Submitted by
Name of Student: SOUMODEEP MODAK
C. U. Registration No.: 544-1111-0852-18
Name of the College: Vivekananda College, Thakurpukur
C.U. Roll No.: 181544-21-0165

Supervised by
Name of the Supervisor: Prof. SUMI KARMAKAR
Name of the College: Vivekananda College, Thakurpukur

2021
 Student’s Declaration

I hereby declare that the Project Work with the title A PROJECT REPORT ON
ICICI ONLINE BANKING submitted by me for the partial fulfillment of the degree of
B.Com. (Honours) in Accounting & Finance under the University of Calcutta is my original
work and has not been submitted earlier to any other University/Institution for the fulfillment
of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated
in this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledge providing details
of such literature in the references.

Signature:

Place: KOLKATA Name: SOUMODEEP MODAK

Date : JUNE,2021 Address: 140/A NETAJI SUBHAS ROAD KOL-700034

C.U. Regn. No.: 544-1111-0852-18

C.U Roll No.: 181544-21-0165

College Roll No.: CH-214

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 Supervisor’s Certificate

This is to certify that SOUMODEEP MODAK, a student of B.Com. (Honours) in

Accounting & Finance of Vivekananda College, Thakurpukur under the University of
Calcutta has worked under my supervision and guidance for hisProject Work and prepared
a Project Report with the title A STUDY OF ICICI ONLINE BANKING.

.
The project report, which he is submitting, is his genuine and original work to the best of
my knowledge.

Signature: PROF. SUMI KARMAKAR

Place: KOLKATA Name: Prof. SUMI KARMAKAR

Date: JUNE,2021

Name of the college: VIVEKANANDA

COLLEGE, Thakurpukur,
Kolkata - 700063

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 Table of Contents

Contents Page
Nos.
Student’s Declaration 1
Supervisor’s Certificate 2
Table of Contents 3
Acknowledgement 4
INTRODUCTION OF E-BANKING 5
OBJECTIVE 6
FEATURES 7
TYPE OF ONLINE BANKING 8
ONLINE BANKING IN INDIA-GUIDELINES BY RBI 9
E-BANKING ON ICICI BANK 10
HISTORY OF ICICI BANK 11
FACILITY OF ICICI BANK E-BANKING 12
BENEFITS OF ICICI E-BANKING 13
IMPORTANT SAFETY TIPS BY ICICI BANK 14
DOWNSIDES OF E-BANKING 15
CONCLUSION 16
BIBLIOGRAPHY 17

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 ACKNOWLEDGEMENT

I convey my heartfelt appreciation to Prof. SUMI KARMAKAR whose cordialand active

supervision the project could not have come into light. I also extend my thanks to all other
teachers of my college for their commendable efforts to bring out this project in a very short
span of time.

Again I am thankful to Prof. SUMI KARMAKAR for reposing confidence on me to write

on this dynamic subject and share his vast knowledge for the completion of this project.

Moreover, I am also thankful to all other learned members of my college for valuable
suggestions regarding the project.

My sincere thanks to Dr.Tapan Kumar Poddar, Principal of Vivekananda College, for

giving me this opportunity to carry out this project.

Date:JUNE2021

(Signature of the student)

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INTRODUCTION: Electronic banking, or e-banking, is the term that describes all transactions that take
place among companies, organizations, and individuals and their banking institutions. First conceptualized
in the mid-1970s, some banks offered customers electronic banking in 1985. However, the lack of Internet
users, and costs associated with using online banking, stunted growth. The Internet explosion in the late-
1990s made people more comfortable with making transactions over the web. Despite the dotcom crash, e-
banking grew alongside the Internet. Online banking (or internet banking or E-banking) allows customers of
a financial institution to conduct financial transactions on a secure website operated by the institution, which
can be a retail or virtual bank, credit union or building society. Online banking is the practice of making
bank transactions or paying bills via the Internet. Thanks to technology, and the Internet in particular, people
no longer have to leave the house to shop, communicate, or even do their banking. Online banking allows a
customer to make deposits, withdrawals, and pay bills all with the click of a mouse.

HISTORY: While financial institutions took steps to implement e-banking services in the mid-1990s,
many consumers were hesitant to conduct monetary transactions over the web. It took widespread adoption
of electronic commerce, based on trailblazing companies such as America Online, Amazon.com and eBay,
to make the idea of paying for items online widespread. By 2000, 80 percent of U.S. banks offered e-
banking. Customer use grew slowly. At Bank of America, for example, it took 10 years to acquire 2 million
e-banking customers. However, a significant cultural change took place after the Y2K scare ended. In 2001,
Bank of America became the first bank to top 3 million online banking customers, more than 20 percent of
its customer base. In comparison, larger national institutions, such as Citigroup claimed 2.2 million online
relationships globally, while J.P. Morgan Chase estimated it had more than 750,000 online banking
customers. Wells Fargo had 2.5 million online banking customers, including small businesses. Online
customers proved more loyal and profitable than regular customers. In October 2001, Bank of America
customers executed a record 3.1 million electronic bill payments, totalling more than $1 billion. In 2009, a
report by Gartner Group estimated that 47 percent of U.S. adults and 30 percent in the United Kingdom bank
online.

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 OBJECTIVES OF THE STUDY

The main objectives of the study are_

❖ To understand the genesis and concept of Online-Banking.

❖ To analyse the importance, functions, advantages and limitations of Online-Banking.
❖ To explain the different form of Online-Banking and to analyse the rules & regulation regarding
Online-Banking guided by RBI.
❖ To highlighting on the security problems of Online-Banking and how to reduce the security issues
with the help of security control tools.
❖ To analyse the trend of Online-Banking with the help of primary data.
❖ To analyse the present e-banking scenario concerned with ATM, Internet banking, Mobile banking,
credit card-debit card, fund transfer and other e-banking services.
❖ To examine the impact of ATM, Internet banking, Mobile banking and Credit cards on customer
satisfaction by analysing the problems faced by the customers.

CHAPTER PLANNING:
The study is divided into eleven part:
• FEATURES OF ONLINE BANKING
• DIFFERENT TYPES OF ONLINE BANKING
• ONLINE BANKING IN INDIA-GUIDELINES BY RBI
• E-BANKING ON ICICI BANK- AN OVERVIEW
• HISTORY OF ICICI BANK
• FACILITY OF ICICI BANK E-BANKING
• BENEFITS OF ICICI E-BANKING
• IMPORTANT SAFETY TIPS BY ICICI BANK FOR ONLINE BANKING
• DOWNSIDES OF E-BANKING
• CONCLUSION
• BIBLIOGRAPHY

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 FEATURES OF ONLINE BANKING:
Online banking facilities offered by various financial institutions have many features and capabilities in
common, but also have some that are application specific. The common features fall broadly into several
categories:
(A). A bank customer can perform non-transactional tasks through online banking, including –
I. Viewing account balances.
II. Viewing recent transactions.
III. Downloading bank statements, for example in PDF format.
IV. Viewing images of paid cheques.
V. Ordering cheque books. VI. Download periodic account statements.
VII. Downloading applications for M-banking, E-banking etc.
(B). Bank customers can transact banking tasks through online banking, including –
I. Funds transfers between the customer's linked accounts.
II. Paying third parties, including bill payments (see, e.g., BPAY) and third party fund transfers (see, e.g.,
FAST).
III. Investment purchase or sale.
IV. Loan applications and transactions, such as repayments of enrolments.
V. Credit card applications.
VI. Register utility billers and make bill payments.
VII. Financial institution administration.
VIII. Management of multiple users having varying levels of authority.
IX. Transaction approval process. Some financial institutions offer special internet banking services, for
example: Personal financial management support, such as importing data into personal Accounting
Software. Some online banking platforms support account Aggregation to allow the customers to monitor all
of their accounts in one place whether they are with their main bank or with other institutions.

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 DIFFERENT TYPES OF ONLINE BANKING
3.1. CORE BANKING SOLUTION or CBS: Core Banking is a banking service provided by a group of
networked bank branches where customers may access their bank account and perform basic transactions
from any of the member branch offices. Core banking is often associated with retail banking and many
banks treat the retail customers as their core banking customers. Businesses are usually managed via the
Corporate banking division of the institution. Core banking covers basic depositing and lending of money.
Normal Core Banking functions will include transaction accounts, loans, mortgages and payments. Banks
make these services available across multiple channels like ATMs, Internet banking, mobile banking and
branches. The core banking services rely heavily on computer and network technology to allow a bank to
centralise its record keeping and allow access from any location. It has been the development of banking
software that has allowed core banking solutions to be developed.

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 ONLINE BANKING IN INDIA-GUIDELINES BY RBI

➢ 6.1.1. Technology and Security Standards:

➢ 1. RRBs should have appropriate Information Security policy duly approved by the Board of
Directors. There should be clear segregation of duties between the Information Technology (IT)
Division and the Information Security (IS) Division. The Information Technology Division will
actually implement the computer systems. There should be a separate Information Security Officer
dealing exclusively with Information Systems security. Further, an Information Systems Auditor will
audit the Information Systems.
➢ 2. The bank should designate a Network and Database Administrator with clearly defined roles as
per the IS Audit policy duly approved by their Board.
➢ 3. Logical access controls to data, Systems, Application software, utilities, telecommunication lines,
libraries, System software, etc. should be in place.
➢ 4. The bank should ensure that there is no direct connection between the Internet and the bank's
system.
➢ 5. All unnecessary services on the Application Server such as File Transfer Protocol (FTP), Telnet
should be disabled. The Application Server should be isolated from the e-mail server.
➢ 6. The Information Security officer and the Information System auditor should conduct periodic
penetration tests of the system.
➢ 7. Physical access controls should be strictly enforced. Physical security should cover all the
Information Systems and sites where they are housed, both against internal and external threats. h.
The bank should have proper infrastructure and schedules for backing up data.
➢ 8. Security infrastructure should be properly tested before using the Systems and Applications for
normal operations. Banks should periodically upgrade the Systems to newer versions which give
better security and control.
➢ 6.1.2. Legal Issues:
➢ 1. Banks may provide Internet Banking facility to a customer only at his/her option based on specific written
or authenticated electronic requisition along with a positive acknowledgement.
➢ 2. Considering the prevailing legal position, there is an obligation on the part of banks not only to establish
the identity but also to make enquiries about the integrity and reputation of the customer opting for internet
banking. Therefore, even though request for opening an account may be accepted over Internet, accounts
should be opened only after verification of the identity of the customer and adherence to KYC guidelines.

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 E-BANKING ON ICICI BANK- AN OVERVIEW
It is an Indian financial services company headquartered in Mumbai, Maharashtra. It is the second
largest bank in India by assets and third largest by market capitalization. It offers a wide range of
banking products and financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries in the areas of investment banking, life and
non-life insurance, venture capital and asset management. The Bank has a network of 2,883 branches
and 10021 ATM's in India, and has a presence in 19 countries, including India. The bank has
subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore,
Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative
offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and
Indonesia. The company's UK subsidiary has established branches in Belgium and Germany. ICICI
Bank is one of the big four banks of India, along with State Bank of India, Punjab National Bank and
Canara Bank.21 ICICI Bank is India‘s second-largest bank with total assets of 3,997.95 billion (US$
100 billion) at March 31, 2012 and profit after tax of Rs. 41.58 billion for the year ended March 31,
2012 ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked
second amongst all the companies listed on the Indian stock exchanges. In terms of free float market
capitalization. The Bank has a network of about 1308 branches And 3,950 ATMs in India and
presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services
to corporate and retail customer through a variety of delivery channels and through its specialized
subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture
capital and asset management. Equity shares are listed in India on Bombay Stock Exchange (BSE)
and the National Stock Exchange (NSE) of India Limited and its American Depositary Receipts
(ADR) are listed on the New York Stock Exchange (NYSE).

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 HISTORY OF ICICI BANK

ICICI bank was originally promoted in 1994 by ICICI limited an Indian financial institution and was
its wholly owned subsidy of ICICI. In the 1990s , ICICI transformed its business from development
financial institution offering only project finance to a diversified financial services group offering a
wide variety of products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank. In1999, ICICI become the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on the NYSE.After consideration of various
corporate structuring alternatives in the context of the 22 emerging competitive scenario in the Indian
banking industry, and the move towards universal banking for the ICICI group's universal banking
strategy. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad
in March2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in
April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both
wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of
Business Conduct and Ethics for its directors and employees.

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 FACILITY OF ICICI BANK E-BANKING

❖ MOBILE BANKING: Bank on the move with ICICI bank mobile banking. With ICICI banking is
no longer what is used to be. ICICI bank offers mobile facility.
❖ ALERT FACILITY: ICICI Bank Mobile Banking Alerts facility keeps you informed about the
significant transactions in its Accounts. It keeps you updated wherever you go.
❖ REQUEST FACILITY: ICICI Bank Mobile Banking Requests facility enables you to query for its
account balance.
❖ ICICI Bank Online: Banking Services provide the largest private bank in India right here at your
desktops. Banking becomes pleasure as the transactions and services become instant with ICICI 23
Bank online Internet banking. The services provided are totally secure and unique. These cover
online account transactions and operations, credit card and account applications and payments, share
trading and investments through mutual funds, bill payments, statement generation and a virtual
demo of each service. See in brief in final report.
❖ Features offered by ICICI bank for internet banking:
❖ • Balance enquiry and statement
❖ • Transfer fund online
❖ • Card to card fund transfer
❖ • Use debit card online
❖ • Prepaid mobile recharge
❖ • Subscribe for mobile banking
❖ • Link bank account to ATM
❖ • Lock / activate debit cards /ATM
❖ • Request a cheque book
❖ • Stop payment

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 BENEFITS OF ICICI E-BANKING

Shop Online With Ease:

When users shop online and are redirected to the payments page, there are multiple payment options such as
debit cards, credit cards, Internet banking, mobile banking, cash wallets amongst others that are provided to
the user to choose from. ICICI Net Banking comes as one of the most convenient payment options as users
can make payments easily by entering only the User ID and the password. Remembering User ID and
Password can be much easier than remembering the card number, card expiry date and CVV number that
needs to be filled in case they make the payment through debit or credit cards. Also, Net Banking comes as a
safe option as you may avoid saving your card details in merchant sites.

Transfer Funds Swiftly:

ICICI account holders may transfer funds to their near and dear ones and their professional and business
associations using their mobile devices or through web browsers in a matter of seconds. There are multiple
options to transfer funds to any person having an account in any of the recognised banks in India and abroad.
The best thing about using ICICI Mobile and Net Banking is that the user's face no time or location
constraints and can transfer funds and perform other banking functions 24/7 and 365 days a year as long as
they have access to Internet.

Pay Utility Bills:

Gone are the days when people had to stand in long queues for hours to pay their electricity, telephone, or
water bills. With ICICI Net Banking, users today can pay a range of bills and deposit insurance premium
anytime anywhere without wasting their time and efforts. Paying utility bills for government as well as
private services has become an easy affair as most of these organizations have their own websites and online
payments are encouraged by them in general. Mobile or DTH recharge can also be done through ICICI
Mobile Banking by just selecting the operator, entering the mobile number and recharge amount.

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 IMPORTANT SAFETY TIPS BY ICICI BANK FOR ONLINE BANKING

• Always enter the correct URL to access ICICI Net Banking.

• Switch to paperless banking. Receive your monthly bank statements, demat statements, and
credit card bills through email.
• Monitor daily account activity and check your account balance as well as periodical statements
through ICICIBank.com. This would help in detecting fraudulent transactions if any.
• Receive free alerts on all transactions in your ICICI account by registering yourself for mobile
banking.
• Accessing Internet Banking from a shared computer or cyber café must be avoided. However,
if it’s unavoidable, change your passwords from your own devices.
• Logout from your ICICI Net Banking or Mobile Banking account, once you finish a session.
• Disable the ‘Auto Complete’ function if your login ID or password automatically appear on a
secured website to ensure protection of your credentials.
• Change your login passwords and transaction password at least once in a month. The
passwords should be strong and not easily guessable. Make use of special characters, numbers,
small, and capital letters.
• Refrain from sharing your Internet Banking Details with anyone. Do not entertain telephone
calls asking for your card details or passwords.

➢ ICICI Bank i-safe:

‘i-safe’ is an application from ICICI Bank that enhances the security of a user’s online account through a
One Time Password (OTP) sent to their registered mobile number. In any unusual activity on a user’s
account, i-safe generates an OTP to authenticate the user before processing their request.
➢ PIN And Password Safety Measures To Keep In Mind:
• The PIN mailer should be destroyed after a PIN is memorised.
• The Pin should be changed after first use and should be changed every month to ensure enhanced
security.
• Choose a password which has a combination of small and capital letters, special characters, and
numbers.
• Refrain from using passwords that are easy to guess and obvious.
• Disable the ‘Auto Complete’ function in your browser if your User ID and password automatically
appear on a secured website.
• Avoid saving your passwords on your personal devices or on paper or notepad. Memorize your
passwords for better safety online.

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 Downsides of E-banking

Lack of Trust:

The reason that not many people have started using e-banking is because they do not trust the services of the
bank through the net. Some human beings prefer to trust others like them and may have some difficulty in
trusting a machine, especially in the matters of money. They may always have a doubt about whether their
money is safe, while being processed through e-banking.

Online Fraud:

A few cases of forgery have been reported in online banking. There are some fraud or proxy websites, which
can hack information (user name and password) entered by a person for some transaction, and later misuse
it. In such cases, people lose their money without knowledge, and by the time they get the bill, huge loses
may have been incurred.

Time Constraint:

Another disadvantage of e-banking is that it may take some time to get the internet account started, as it
requires a lot of paperwork. Some people avoid using e-banking services, because they find it difficult to
understand how it works. Also, the fact that a wrong click can cause monetary losses may be a deterrent. E-
banking can also pose a problem, if the network is down in one’s area. This may cause difficulty, if the
person has to do an important transaction.

Service:

One very common disadvantage of online banking is when a person has some problem or query. In a normal
bank, if one faces some problem, one can go to some employee of the bank to solve it. However, in the case
of e-banking, one will find oneself making endless calls to the customer service department. There have
been cases, where the person is put on hold or has been passed around from one person to another.Although,
e-banking has certain downsides, one can avail of its customer-friendly services, if one is a little careful.
One should never give away one’s password to any unknown person and to make the experience of e-
banking a smooth process, one must use sites that are familiar and reliable.

➢ Points to Be Noted:
• Never share your OTP with anyone not even with a person claiming to be an ICICI Bank
employee.
• An OTP is valid only for the current session, a single OTP cannot be used more than once.
• It is advisable to install an Antivirus, Flash Player and Java in your device.

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 CONCLUSION

In a country like India, there is need for providing better and customized services to the customers. Banks must
be concerned about the attitudes of customers with regard to acceptance of internet banking. The importance
of security and privacy for acceptance of internet banking has been noted in many earlier studies and it was
found that people claim that they have knowledge about security issues but they have no clear idea about all
kind frauds. The present study shows that customers are more reluctant to accept new technologies or methods
that might contain little risk. Hence, banks should design the website to address security and trust issues. The
survey was conducted with 114 people of Uttarpara area. So we can’t say that this is the real trends of net
banking of whole the country. People are not confident enough to whether to rely completely on online
banking. There is hesitancy in their minds with regards to preference. So they use both the online and offline
banking. At the time of survey when I give questionnaires to people, they very casually fill it without think of
the depth of the study. Another point is people are not disclose their personal data truly. Due to shortage of
time data can’t be collected form all types of people. The study was conducted with the help of students, service
holders and business men etc. The study reveals that ATM BANKING, BILL PAYMENT, ONLINE
SHOPPING and ONLINE RECHARGE etc. are performed by so many respondents but it does not reflect that
NEFT, RTGS or DMAT services are not performed by the people.

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 BIBLIOGRAPHY

WEBSITES:
• www.wikipedia.in
• www.slideshare.net
• www.scribed.in
• www.investopedia.com
• www.yahoo.com
• www.sbionline.com
• www.sbi.co.in
• www.linkedin.com
• www.rbi.org.in
• www.rbi.in

BOOKS:
• An Introduction to E-Commerce: - written by Ramit Kumar Roy & Debasri Dey and
published by the Elegant Publications.
• E-Commerce: - written by Prof.(Dr.) Dilip Kumar Chakraborty & Prof. Debdulal
Chatterjee and published by B.B. Kundu Grandsons.
• Introduction to Information Technology & its Business Application: - written by A.K.
Mukhopadhyay & A. Das and published by Kalimata Pustakalaya.

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