GTUs Enrollment No : 117690592061

A PROJECT REPORT ON

A Study of E-Age Banking

At

HDFC BANK PVT. LTD Submitted By: MANALI AGRAWAL MBA PROGRAMME 2011-2013 In partial fulfilment of the requirements for Summer Internship Programme for the award of the degree of MASTER OF BUSINESS ADMINISTRATION SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT AND COMPUTER APPLICATIONS (NICM-MBA)

Submitted to GUJARAT TECHNOLOGICAL UNIVERSITY AHMEDABAD

Declaration

This project report entitled E-Age banking has been submitted to Gujarat Technological University, Ahmedabad in partial fulfillment for the award of degree of Master of Business Administration. I, the undersigned hereby declare that this report has been completed by me under the guidance of Mr Jaymin Maheta and Ms Sarbajit (HDFC Bank) and Prof. Chirag Patel (Faculty Member, Shri Jairambhai Patel Institute of Business Management & Computer Applications, Gandhinagar.)

The report is entirely the result of my own efforts and has not been submitted either in part or whole to any other institute or university for any degree. Manali Bharatbhai Agrawal GTUs Enrollment No : 117690592061 Date : 28/07/2012 Place : Gandhinagar

Shri Jairambhai Patel Institute of Business Management and Computer Applications

(Formerly known as National Institute of Cooperative Management),
Approved by AICTE, New Delhi and Affiliated with Gujarat University Opposite Amusement Park, Indroda Circle, Gandhinagar - 382 007 Phone: 079 23213043, 37 - 38 - 39 Fax : 079 23213036 Web: www.nicm.org.in E mail: director_mbanicm@yahoo.com

CERTIFICATE
This is to certify that MANALI BHARATBHAI AGRAWAL, student of MBA (2011-2013 batch) at Post Graduate Centre of Gujarat Technological University MBA, SJPI has prepared a Summer Internship Project Report on E-Age Banking in partial fulfillment of two years full-time MBA Programme of Gujarat Technological University, Ahmedabad. This project work has been undertaken under my supervision and found satisfactory.

Date :28/07/2012 Place: Gandhinagar Deptt &

Guid

Prof. Chirag Patel Core Faculty MBA

Project

II

PREFACE
This project is prepared during the vocational training under taken at HDFC BANK, on partial fulfillment of the Post Graduate in Master of Business Administration.

Hence, this report is designed with the objective to gain practical knowledge and is undertaken on NEW E-AGE BANKING. According to an old saying there is a huge difference between to say and to do. To take theoretical knowledge is important but it becomes more valuable when we apply it in the practice. So, for fulfilling this requirement, training in HDFC BANK was very GOOD exposure for me. This training provided golden opportunity for all students, especially when the management student does not have perfect understanding about the working of a company.

Hence, this report is designed with the objective to gain practical knowledge & is undertaken on E-AGE BANKING.

IV

ACKNOWLEDGEMENT

The Project work is not a result of any individual but of many whom contributed directly or indirectly towards it. Probably, I could never complete this task so well without the guidance of many people. So, I express my deep sense of gratitude to all the people who had helped me during this Project. First I would like to thank Mr. Mikin Patel (The Branch Manager of HDFC Bank), for his continuous guidance and supervision and support during the training period. I would also like to thank to Mr. Jaymin Mehta and Ms. Sarbjit and all the Staff Members who have spared sometime and helped me out to carry on my project work successfully at the best level. In regard to this programme, I would like to acknowledge our gratitude and thanks to Director Dr. S.O. Junare of, Shri Jairambhai Patel Institute of Business Management & Computer Applications, Gandhinagar.

I would like to thank my project guide Prof. Chirag Patel, who has guided me for my project work and provided encouragement throughout my training period. Last but not the least I am sincerely thankful to my Parents and Friends for giving me the support, care and concerns.

EXECUTIVE SUMMARY

This study focuses on E-Age banking services provided by HDFS bank, which includes phone banking, mobile banking, instaalert, net banking, etc . Now a days, because of technology we can perform all the banking functions at our home, there is no need to visit branch. This study has 150 respondents who uses the services provided by HDFC bank &Sampling technique is Convenient. Objectives of this study are to study the Net Banking services & popularity of Net Banking of HDFC bank. Due to E Age banking services it is possible to operate our bank account by using smart phone like iphone , blackberry, etc. The major findings of the study are, Majority of the respondents are aware about the net banking services provided by HDFC bank. Majority of the respondents feel that net banking services are more convenience & easy to access. Majority of the respondents feel that net banking services are more speedy and there is no time boundaries like traditional banking system.

VI

TABLE OF CONTENTS

Chapter Sub No. Topic Topic

Declaration Certificate from the Organization Certificate from the Institute Preface Acknowledgement Executive Summary Table of Content List of Figure List of Table

Page No.
I II III IV V VI VII X XI 1 2 4 5 7 8 9 12 13 14
VII

1 1.1 1.2 1.3 1.4 2 2.1 2.2 2.3 2.4 2.5

Overview of Banking Introduction History of Banking in India Indian Banking Industry Economic Function of Banks Company Overview History of HDFC Bank Subsidiaries Companies Board of Directors Vision & Mission of HDFC Bank

Background & Objectives of HDFC Bank 11

2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14

Business Strategy Technology Distribution Channel Promoters Milestones Current Situation of the Bank Future Plans of the Bank Products of the Bank Functions of Various Departments of HDFC Bank

15 16 17 18 19 20 21 22 27

3 3.1 3.2 3.2.1 3.2.1.1 3.2.1.2 3.2.2 3.2.3 3.2.4 3.2.4.1 3.2.4.2 3.2.4.3 3.2.4.4

Concepts of E-Age Banking E-Age banking Methods of E-Age Banking Bank with Your Phone Phone Banking Mobile Banking Instraalert Credit cards Net Banking Advantages & Disadvantages of Net Banking Traditional Banking VS net Banking HDFC Net Banking Net Banking On Mobile

29 30 30 30 30 35 39 41 43 44 46 47 51 52

Literature Review

VIII

5 5.1 5.2 5.3 5.4 5.5 6 7 8

Research Methodology Introduction Research Objective Research Design Data Collection & Data Analysis Limitations of the Study Data Analysis & Data Interpretation Findings of the study Recommendations Conclusion Bibliography Annexure Questionnaire

57 58 60 61 63 64 65 78 79 81 82 84

IX

LIST OF FIGURE

Chapter Figure No.

6

Page Title
Types of Account Services HDFC bank Services Used for convenience Services Frequently used in Net Banking Reason for Which Net Banking is Used Association with HDFC Bank Reason for Using HDFC Bank Satisfaction due to services provided by HDFC Bank Satisfaction due to Net Banking services provided by HDFC Bank Difficulties Faced while Using Net Banking 66 67 68 70 71 72 73 74 75 76

No.
6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11

No.

Respondents Who Likes Net Banking 69

LIST OF TABLES

Chapter Figure No.

6

Page Title
Types of Account Services HDFC bank Services Used for convenience Services Frequently used in Net Banking Reason for Which Net Banking is Used Association with HDFC Bank Reason for Using HDFC Bank Satisfaction due to services provided by HDFC Bank Satisfaction due to Net Banking services provided by HDFC Bank Difficulties Faced while Using Net Banking 66 67 68 70 71 72 73 74 75 76

No.
6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11

No.

Respondents Who Likes Net Banking 69

XI

XII

CHAPTER 1

OVERVIEW OF BANKING

1.1 I N T R O D U C T I O N
T h e wo rd B a n k i t s e l f d e r i v e d f ro m t h e wo r d B an c u s or B a n q u e th a t is F r e n c h . There were others of the opinion that the word Bank is originally derived from the German word back meaning joint stock fund which was Italianized into Banco. Bank is a business that provides financial services,

usually for profit. Traditional banking Services include receiving deposits of money, lending money and processing transactions. A commercial bank accepts deposits from customers and in turn makes loans based on those deposits. Some banks (called Banks of issue) issue banknotes as legal tender. Many banks offer ancillary financial services to make additional profit; for example: selling insurance products, investment products or stock broking. Banks provides financial services to consumers and businesses. The basic services a bank provides are checking accounts, which can be used like money to make payments and purchase goods and services; savings accounts and time deposits that can be used to save money for future use; loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as check cashing and foreign currency exchange.

A broader definition of a bank is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. This broader definition includes many other financial institutions that are not usually thought of as banks but which nevertheless provide one or
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more of these broadly defined banking services. These institutions include finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts.

Banking services serve two primary purposes. First, by supplying customers with the basic mediums-of-exchange (cash, checking accounts, and credit cards), banks play a key role in the way goods and services are purchased. Without these familiar methods of payment, goods could only be exchanged by barter. This is extremely time-consuming and inefficient. Banking services are extremely important in a free market economy such as that found in Canada and the United States.

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1.2 HISTORY OF BANKING IN INDIA

The Banking sector is the lifeline of any modern economy. Banking in India originated in the first decade of 18th century with the general bank of India coming into existence in 1786. This was followed by bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the state bank of India being established as the bank of Bengal in Calcutta in June 1806. a couple of decades later, foreign banks like credit Lyonnais started their Calcutta operations in the 1850s. at that point of time, Calcutta was the most active trading port, mainly due to the trade of the British empire.

The first fully Indian owned bank was the Allahabad bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab national bank, in 1895 in Lahore and bank of India, in 1906, in Mumbai both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the reserve bank was nationalized and given broader powers.

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1.3 INDIAN BANKING INDUSTRY

India has a well developed banking system. Most of the banks in India were founded by Indian entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders, agriculturists and budding Indian industrialists. Indian banks have played a significant role in the development of Indian economy by inculcating the habit of saving in Indians and by lending finance to Indian industry. The banking sector reforms undertaken in India from 1992 onwards were basically aimed at ensuring the safety and soundness of financial institutions and at the same time at making the banking system strong, efficient, functionally diverse and competitive. The reforms included measures for arresting the decline in productivity, efficiency and profitability of the banking sector. Furthermore, it was recognized that the Indian banking system should be in tune with international standards of capital adequacy, prudential regulations, and accounting and disclosure standards. Financial soundness and consistent supervisory practices, as evident in our level of compliance with the Basel Committees Core Principles for Effective Banking Supervision, have made our banking system resilient to global shocks. India has not faced any major economic/financial crises, though in 199091, there was some pressure on the external sector with the current account deficit and external debt servicing reaching large proportions. However, due to prudent macroeconomic policies, it was possible to return the country to a sustainable growth path.

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The period 1969-90 witnessed rapid branch expansion and an adequate flow of credit to all sectors, including the neglected sectors of the country. Mergers of certain foreign banks at the global level have also not affected the Indian market, as their market share is currently very low. Generally, however, due to their limited knowledge of the local industry and branch network, foreign banks are very conscious about their asset quality and a major shift in the share of foreign banks may result in neglect of the credit requirements of small and medium-sized businesses, whose development is crucial for emerging markets, but which are perceived as carrying relatively higher risks. There have been no major difficulties experienced in coordination with the home country supervisors of foreign banks. However, the deregulation process has brought in more competition in the banking sector, resulting in delivery of innovative financial products at competitive rates.

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1.4 ECONOMIC FUNCTIONS OF BANKS

A.

Issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. These claims on banks can act as money because they are negotiable and/or repayable on demand, and hence valued at par and effectively transferable by mere delivery in the case of banknotes, or by drawing a cheque, delivering it to the payee to bank or cash.

B.

Credit quality improvement banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and the bank's own capital which provides a buffer to absorb losses without defaulting on its own obligations.

C.

Netting and settlement of payments -- banks act both as collection agent and paying agents for customers, and participate in inter-bank clearing and settlement systems to collect, present, be presented with, and pay payment instruments.

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CHAPTER 2
COMPANY OVERVIEW

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2.1 HISTORY OF HDFC BANK

The Housing Development Finance Corporation Limited (HDFC Ltd) was amongst the first to set up a bank in the private sector. The bank was incorporated on 30th August 1994 in the name of HDFC BANK Limited with its registered office in Mumbai. HDFC Bank commenced operations as a Scheduled Commercial Bank on 16th January 1995. The bank has grown consistently and is now amongst the leading players in the industry.

HDFC Banks business philosophy is based on four core values Customer Focus, Operational Excellence, Product Leadership and People. They believe that the ultimate identity and success of their bank will reside in the exceptional quality of their people and their extraordinary efforts. For this reason, they are committed to hiring, developing, motivating and retaining the best people in the industry. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. Currently it has a nationwide network of 1229 Branches and 2526 ATM's in 444 Indian towns and cities.

The Housing Development Finance Corporation Limited

(HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.

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HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to accomplish the vision of becoming a worldclass Indian bank.

The recent development of HDFC bank is: The RBI has approved the scheme of amalgamation of Centurion bank of Punjab ltd. With HDFC bank ltd with effect from may 23, 2008. All the branches of centurion bank of Punjab will function as branches of HDFC bank with effect from May 23, 2008.

On 15th January 2009, HDFC bank launched a Merits Scholarship Program for the students studying from the 4th to 9th standard. Students will be judged on parameters like academics, extra-curricular activities and written tests.

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2.2 BACKGROUND AND OBJECTIVE OF HDFC GROUP

BACKGROUND
HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.

BUSINESS OBJECTIVES
The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

ORGANIZATIONAL GOALS
a)

Maintain its position as the premier housing finance institution in the

country, b) Develop close relationships with individual households, c) Transform ideas into viable and creative solutions, d) Provide consistently high returns to shareholders.

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2.3 SUBSIDIARIES COMPANIES

o o o o o o o o o o

HDFC Bank Ltd. HDFC Developers Ltd. HDFC Standard Life Insurance Company Ltd. HDFC Asset Management Company Ltd. HDFC Holdings Ltd. HDFC Investments Ltd. HDFC trustee Company Ltd. HDFC Finance Ltd. HDFC Chubb General Insurance Company Ltd. HDFC Venture Capital Ltd.

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2.4BOARD OF DIRECTORS

Mr. C.M.Vasudev Mr. Aditya Puri Mr. Keki Mistri Mrs. Renu Karnad Mr. Ashim Samanta Dr. Pandit Palande Mr. Partho Datta Mr. Bobby Parikh Mr. A.N.Roy Mr. Harish Engineer Mr. Paresh Sukthankar

Chairman M.D. Director Director Director Director Director Director Director Executive Director Executive Director

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2.5 VISION & MISSION OF THE HDFC BANK

VISION
To Be A World Class Indian Bank

MISSION
Every company has its mission and vision statement same as HDFC Bank has its own mission strategy which is mentioned as below: HDFC Bank mission is to be "a World Class Indian Bank", benchmarking their selves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth. They are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance.

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2.6 BUSINESS STRATEGY

Leverage technology platform and open saleable systems to deliver more products to more customers and to control operating costs. Increase our market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Maintain current high standards for asset quality through disciplined credit risk management. Focus on high earnings growth with low volatility. Develop innovative products and services that attract its targeted

customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce cost of funds.

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2.7 TECHNOLOGY

The bank is using high computerized and well developed technology in its operation. HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank.

The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

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2.8 DISTRIBUTION CHANNEL

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229 branches spread over 444 cities across India. All branches are linked on an online real-time basis. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centre where the NSE/BSE have a strong and active member base.

The Bank also has a network of about over 2526 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

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2.9 PROMOTERS

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment .

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2.10 MILESTONES
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". Asia Money 2012 Finance Asia UTI Mutual Fund CNBC TV 18 Financial Advisor Awards 2011 Asian Banker International Excellence in Retail Financial Services Awards 2012 5th Loyalty Summit award Skoch foundation 2012 ICAI Awards 2011 Excellence in Financial Reporting SHG/JLG linkage programme Customer and Brand Loyalty - Best Retail Bank in India - Best Bancassurance - Best Risk Management - Best Managed Company - Best CEO - Mr. Aditya Puri - Best Performing Bank - Private Best Domestic Bank in India

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2.11CURRENT SITUATION OF THE BANK

HDFC bank provides a wide range of services in wholesale and retail banking; including commercial, investment, transactional and branch banking. Today HDFC Bank has more than 3.25 million customers. On the wholesale services front, it is recognized as a leading provider of cash management and transactional banking solutions to corporate customers.

HDFC bank is one of the top three companies in the private sectors. Increasing revenue in the face of fierce competition HDFC Bank was among the first privatized banks to be set up in India after the liberalization of the Indian banking industry.

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2.12 FUTURE PLANS

HDFC has developed a vast client base of borrowers, depositors, share holders and agents, and it hopes to capitalize on this loyal and satisfied client base for future growth. HDFC has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialized financial services. Times Bank Merger and Strategic Alliances Will Enhance the Banks Position in the sector.

Times bank merger will give HDFC Bank a greater reach in terms of an expanded network, which will touch 107 branches and an increased customer base. The bank has also invested 26% each in the equity of computerage management services and ACSYS system software India as strategic investment. While computer age is a well established player in the distribution of a range of mutual fund products, ACSYS is into developing software that caters to distributors of financial products and mutual funds. Each institution is being fine- tuned for a specific market, while offering the entire HDFC customer base the highest standards of quality in product design, facilities and services.

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2.13 PRODUCTS OF THE BANKS

HDFC bank provides a bunch of products and services to meet the every need of people. The company cares for both, individual as well as corporate and small and medium enterprises. The products are mentioned as below:

1) Current Account
The one of the products of the HDFC bank is the Current Account. It Provides freedom of multi-city banking. You can have the power of multi-location access to your account from any of the 758 branches in 361 cities.

TYPES OF CURRENT ACCOUNTS

CURRENT ACCOUNT

TRADE

PLUS

REGULAR

PREMIUM

2) Savings Account

Saving account is one of the Products of the HDFC Bank. These accounts facilitate sense of saving for the future, accumulating funds over a period of time. There are various types of the Saving Accounts which are mentioned as
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TYPES OF SAVINGS ACCOUNTS

Saving Regular account Savings plus account Savings Max account No frills Family savings Kids advantage Pension savings Senior citizen account

3) Demat Account

HDFC Bank Demat services offers secure and convenient way to keep track of the securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit.

HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

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VARIOUS KINDS OF LOANS

Personal loans Home loans Two wheeler loans Car loans Gold loans Educational loans Loan against security Loan against property

4) Fixed Deposits
Long-term investments form the chunk of everybody's future plans. An alternative to simply applying for loans, fixed deposits allow you to borrow from your own funds for a limited period, thus fulfilling your needs as well as keeping your savings secure.

5) Cards
There are various range of Cards which helps to meet the financial objectives. So whether you are looking to add to your buying power, conducting cashless shopping, or budgeting your expenditure, you will find a card that suits you.

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CREDIT CARDS
CLASSIC CARDS (1) Silver credit card SPECIAL BENEFIT CARDS

(1)Value plus credit card (2)Health plus credit card

PREMIUM CARDS:

(1) Gold credit card (2) Platinum credit card (3) Womens gold credit card
DEBIT CARDS: (1) Easy shop international debit card (2) Easy shop gold debit card

PREPAID CARDS (1) Forex Plus card

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6) Investment And Insurance

(1) Mutual Funds (2) Insurance (3) General & Health Insurance (4) Bonds (5) Mudra Gold Bar

7) NRI Accounts
(1) NRE savings account (2) NRO saving accounts

8) Phone Banking

9) Internet Banking

10) Mobile Banking

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2.14 FUNCTIONS OF VARIOUS DEPARTMENTS OF HDFC BANK

(A) WHOLESELL BANKING (OPERATIONS)

It is also called Operations. As we know, Operation is the backbone of any organization. The main functions of whole sell banking is; Clearing Trade finance Cash management service Demate & Remate of share Other operations

(B) RETAIL BANKING

1) PERSONNEL BANKER
Personnel banker takes care of customers. Basically P.B manages the portfolio of the customers. Functions of Personnel: To handle all types of queries of new customers or existed customers Account opening

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2) TELLER
Teller counter consists the teller authorizer and tellers. The main functions of teller are: Transfer cheques and funds. Real time gross settlement Managers cheques Demand draft Income tax, Sales tax Transaction Forex card loading 3 party cash deposit Forex traveler cheques etc..
rd

3) RELATIONSHIP MANAGER
Relationship manager maintains the portfolio of the customers.

4) INVESTMENT RELATIONSHIP MANAGER

He manages the portfolio of those customers who comes in the categories of the classic and preferred customers. He sales, Mutual Funds (there are 32 companies M.F) Insurance (HDFC Standard life) General insurance policies R.B.I bonds Wealth advisory services (to only HDFC s customers

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CHAPTER 3
CONCEPTS OF E-AGE BANKING

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3.1 E-AGE BANKING

This term refers to the technology-based electronic methods of banking (the human teller having been the traditional channel). In olden days you need to go to the bank for every banking transaction. Sometimes you may find that the banks are closed or the banking hours are not suitable to you or location of the bank is not convenient to you. There are many difficulties you face when you go to your bank personally. To avoid these difficulties there is one solution, E-Age Banking. With the development of technology and the internet particularly you do not have to visit the bank personally, you can use phone banking, mobile banking, net banking, etc.

3.2 METHODS OF E-AGE BANKING

3.2.1. BANK WITH YOUR PHONE
In this method banking functions are been performed by the help of a phone. This phone may be a landline or a mobile handset. By using a smart phone one can access his/her account easily without going to any branch. 3.2.1.1 PHONE BANKING Phone Banking offers you all the conveniences you need to access your Account , Loans, Demat & Investment Services from the comfort of your home, office or on the move, that too all in your preferred language. Phone Banking services are a combination of IVR and Agent offering, depending on the type of transaction. For all transactions that cannot be completed on the IVR, Phone Banker assisted services are available. Call Phone Banking and enjoy Banking convenience.

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By using phone banking you can access and operate your Bank account Check account balance & cheque status Order cheque books or account statements Stop cheque payments Get details of transactions on your account Report loss of ATM / Debit / Prepaid Cards (24 hr. service) Pay your bills Re-generate ATM / Debit Card PIN / Net Banking IPIN Enquire about latest Interest / Exchange rates Request Demand Drafts / Manager's Cheques Learn about other products Open a Fixed deposit Transfer funds between accounts Update your Email Id

By using phone banking you can get Information on Loans Check details of outstanding loan amount Enquire about overdrafts Get details on swap or foreclosure procedures, etc. Get details on EMIs and apply for EMI refunds Request for a Welcome letter , Interest Certificate, Agreement copy or NOC

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By using phone banking you can resolve Demat and Loan Against Securities Queries

Resolve queries on account holdings, transaction details or opening an account Status of de-materialization and re-materialization of share certificates Get ISIN number of a scrip / details of client master list Resolve Loan Against Securities Account related queries

Phone Banking offers you the advantage of various services.

Check your account balance You can check up-to-the-second details of your Savings or Current Accounts and your Fixed Deposits. You can also check the last 5 transactions on your account. If youd like, we can fax a ministatement to you with the last 15 transactions on your account. Enquire about cheque status Check the status of the cheques you have issued from your account or deposited into your account from anywhere in India. Order a Cheque Book / Account Statement If you are running out of cheque leaves or if you want your account statement a new cheque book or your latest account statement can be sent to your mailing address.
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 Stop Cheque Payment If you have lost a cheque you can stop the cheque payment. You can also stop payment of a series of cheques through Phone Banking.

Enquire about Loans Get details of the outstanding loan amount, enquire about your loan account, request for an interest certificate and repayment schedule. Just call the Phone Banking number in your city and select your preferred language and then dial option 4. Resolve Demat queries With Phone Banking you can get account holding details, transaction details, the ISIN number of a script, the status of a Depository Slip, Client Master list details, Charges for the account, etc. Call Phone Banking in your city and resolve your queries, after selecting your preferred language and dialling 5. Open a Fixed deposit *# Just call our Phone Banking service to open a Fixed Deposit and authorise a transfer of funds from your account. Transfer funds between accounts*# Transfer money from one account to another over the phone. Make sure the accounts are linked to a single customer ID and you can transfer up to Rs. 1 lakh in a single day.

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 Pay your bills Now you have an easy way to pay your mobile, telephone & electricity bills through Phone Banking with our Bill Pay service. To know more about Bill Pay. Re-generate ATM / Debit card PIN / Net Banking IPIN If you have forgotten your ATM or Debit Card PIN or your Net Banking IPIN, call Phone Banking to re-generate your PIN / IPIN. Report loss of your ATM / Debit / Prepaid Card Anyone can easily use your lost ATM, Debit or Prepaid Card. If you lose your card call our Phone Banking service immediately to ensure your card is hot-listed or blocked instantly. This is a Phone Banker assisted service and is available 24 hrs. on all days. Enquire about latest Interest /Exchange rates Our Phone Banking service will give you the latest interest rates on Deposits and Foreign Exchange rates. Request a Demand Draft / Manager's Cheque #** We will send your Demand Drafts and Manager's Cheques right to your doorstep. Learn about all our other products Any query or concern you have about HDFC Banks products or services can be resolved instantly by our Phone Banking service.

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 Resolve Loan Against Securities Account related queries Get details of Account Position (Credit limit , Utilized amount, Overdrawn amount), Drawing Power, Rate of interest, Pledge details, Interest Amount on Utilization of Limit. Call Phone Banking in your city, select your preferred language & dial 5 to speak to our Phone Banking. Update your Email Id You can call us to update your email id.

*Available in all states except Bihar & Jharkhand. #This facility is available only during Phone Banking hours (i.e. when Phone Bankers are available) ** The delivery facility is available only in Mumbai, Delhi, Kolkata, Chennai, Bangalore & Ahmedabad.

REGISTERATION PROCESS OF PHONE BANKING

Download the Phone Banking application form Download the form, print it, fill in the details along with your signature and drop it off at the nearest HDFC Bank branch. 3.2.1.2 MOBILE BANKING With Mobile Banking you can access your account on your mobile wherever you are. You can access your bank account, you can make banking transactions, you can monitor your accounts and you can fixed deposits, you can shop and pay bills on your mobile.
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Mobile Banking, a great way to have your bank account at your fingertips!

FEATURES OF MOBILE BANKING

Make fund transfers* View balance details Get last 3 transaction details Request for cheque book Stop cheque payment Enquire cheque status Request for account statement Get Fixed Deposit details Request for IPIN generation can be availed on ngpay

HOW DOES MOBILE BANKING WORKS? Mobile Banking is very simple. You can perform a host of functions including accessing your account balance, mini-statement and account statement, etc. Mobile Banking is also available on ngpay through which you can transfer funds, shop at select merchant outlets and make payments. Just keep in mind that you have to type in certain keywords and send an SMS to 5676712. You will receive a response in the form of a text message within just a few seconds.

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Here is a list of the SMSes you need to send for the various functions of Mobile Banking

SMS Bal

Transaction Balance Enquiry

Information received Get the available balance in the accounts (up to 5) linked to your Customer ID. Your first five accounts according to chronological order will be considered.

Txn

Mini Statement

This will give the last three debits / credits made to your account.

cst <6 digit cheque no.> Chq stp <6 digit cheque no.> Stm

Cheque Status Enquiry Cheque Book Request Stop Cheque Request for an Account Statement

Status of a cheque issued by you, whether paid / stopped. Cheque Book is mailed to you (Non Payment-at-par). Stops an issued cheque from being paid. Your current account statement will be mailed to you (the current period is from the date of issue till date).

Bil

Bill Details

Your electricity and telephone bill details will be sent to you via SMS

Fdq

Fixed Deposit Enquiry

The details of current fixed

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deposit with the bank (max. 5 accounts). You will see your account no., principal amount, rate of interest, maturity date and maturity amount. new <13 digit account Change of Primary no.> Account The option to change your primary account and carry out transactions on the new account.
Ipin Internet Banking password (IPIN) regeneration Get a confirmed receipt of your IP IN regeneration request. The IP IN is sent to your mailing address.

With ngpay you can access your account and carry out fund transfers with Mobile Banking. Ensure you have a GPRS enable mobile to download and use ngpay.

REGISTERATION PROCESS OF MOBILE BANKING

Register for Mobile Banking online in 3 simple steps using Net Banking:

Login using your Customer ID and IPIN Click on Insta query Registration Fill in the required details OR Just download the Mobile Banking application form, fill it, sign it and drop it off at the nearest HDFC Bank Branch
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Mobile Banking-iPhone App

HDFC Bank has launched Mobile Banking Application, a special application exclusively for the iPhone. This application allows you to access most important transactions on the go. Why use Application?

iPhone

Mobile

Banking

Simple and convenient Access your account anywhere, anytime As secure as Online Banking There are the list of 63 transactions that you can do using your iPhone including

To download the HDFC Bank Mobile Banking application directly to your iPhone, please follow the easy steps listed below

Go to the App store. Search for HDFC Bank Mobile Banking Download the app.

After downloading the application, simply enter your Customer ID and Net banking Pin (IPIN) to log in.

3.2.2) INSTAALERT
You can get alerts through SMS & EMAIL You can track payments and receipts, you can get reminders so you can pay your utility bills on time and receive intimations when your balance falls below a certain amount so you can maintain your Average Quarterly Balance.
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Register for InstaAlerts and stay aware of the activities on your accounts, anytime and anywhere. You can register for any or all of the following alerts

Debit transactions greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000 Credit in account greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000 Account Balance below Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000 Weekly account balance Salary Credits* Utility bill payment due Alert** Alert for cheque bounce due to insufficient funds

* You need to have a Corporate Salary account with HDFC Bank ** You need to be registered for Bill Pay service. Applicable only to the presentment/biller companies. Eligibility To be eligible for InstaAlerts you need a Savings or Current Account with HDFC Bank. Both resident and non-resident Indians are eligible. Fees For Savings Accounts, InstaAlerts is absolutely free (w.e.f. 1st April 2007). For Current Accounts, a fee of Rs.50 per quarter will be charged for InstaAlerts. As per the Finance Bill 2009, all fees and charges mentioned above will attract Service Tax @ 10% and Education Cess @ 3% of the service tax amount effective 24th February 2009.

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REGISTERATION PROCESS OF INSTAALERTS

There are two ways to register for InstaAlerts 1. Online Registration You can register for InstaAlerts by login to Net banking or by filling an InstaAlerts registration form and dropping it at your nearest HDFC Bank branch. 2. E-age banking form Download and submit the E-age banking form to your nearest HDFC Bank branch. For security reasons, alerts for debit transactions done through Net Banking will be sent to the mobile number updated under your contact details. In case the mobile number is not provided, then the alert will be sent to the e-mail id updated under contact details. To update the contact details, please visit your nearest branch.

3.2.3. CREDIT CARD

Access your HDFC Bank Credit Card account online using Net Banking and view all your account information quickly and easily. Manage your Credit Card transactions, pay your Credit Card bills and track your reward points, which you can redeem for some great offers.

Benefits Of Online Credit Card Access

View

Account Information Unbilled Transactions Credit Card Statements (up to last 6 months)
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Request for

Credit Card Payments Autopay Registration Autopay De-registration Registration of New Card De-registration of Card Statement on E-mail Credit Card ATM Pin

Your account information shows you

Your total cash and credit limits Your billed and unbilled transactions Your payment due date The reward points you have earned on your card This helps you monitor your Credit Card transactions and know when your Credit Card bills are due for payment. You can see your reward points and enjoy the benefits they offer.

REGISTERATION PROCESS OF CREDIT CARD

Step1 Register Now to get online access to your credit card. This service is free of charge. You will have complete privacy when you access your credit card online. Step2 Log on to Net Banking, go to your Credit Card tab and click register new card, to register your card.
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3.2.4. NET BANKING

Net Banking is HDFC Bank's comfort of your own home. Net banking means making banking transactions through the internet. You can access your bank account via internet by registering yourself with your bank for net banking. Through net banking you can make deposits , withdrawals and even pay your bills by just clicking the mouse, the only thing you need is a computer with an internet access. By using net banking you can avoid the bank queue and make transactions from the convenience of your home or office. You can check your bank balance and transactions, pay your bills online by typing the instructions on the internet. The fee for net banking is very low and this service is worth every rupee spend on it. Another advantage is that there is no waste of paper and time. The bank prints your bank account statement and then posts it, this process use to take a lot of time and money , all this is avoided by net banking. Internet banking service. Through Net

Banking, you can perform all your transactions online without leaving the

It is a new concept in banking. Net banking means a self service attitude of banking. Banking itself was never wrong but our dependence on banking was too much and that is why we faced many disappointments. In net banking the customer is the sole financial controller of his own finance and life. The customer performs his own banking transactions by using the internet. We can book tickets of railways, buses, airlines to any place in the world, we can shop anything and everything with net banking and also make payments online. All banking transactions can be carried out with net banking.
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This online service is provided by almost all the banks, 24 hours a day and 7 days a week. This service gives the customer the freedom of timings you can pay your bills or even make purchases at any point of time and any day at your convenience Internet banking is changing the banking industry and i s having th e major effects on banking relationships.

3.2.4.1 ADVANTAGES & DISADVANTAGES OF NET BANKING

Net Banking a l so has its advantages and disadvantages. Below are mentioned the most popular advantages o f using Net Banking along with some unavoidable disadvantages.

ADVANTAGES OF NET BANKING

1. Convenience Net banking sites never close; they're available 24 hours a day, seven days a week, and they're only a mouse click away. 2. Portability You no w have access to money whenever there is an emergency, whether or not you are in the country. 3. Transaction speed Online bank sites generally execute and confirm transactions at the same rate or quicker than, ATM processing speeds

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4. Effectiveness They assets more effectively. 5. Reduction i n workload No more standing in long lines at th e bank, eliminating endless paper based bank statements. offer sophisticated tools, including account aggregation ,stock quotes and rate alerts to help you manage all of your

DISADVANTAGES OF NET BANKING

1. Lac k o f Co mputerization This relates to virtual banks, revolves around the lack of ATMs. 2. Start-up may take time In order to register for your bank's online program, you will probably have to provide ID and sign a form at a bank branch which can be time consuming. 3. Learning curve Banking sites can be difficult to navigate at first. 4. Distrust of the User The possibility of frauds, making errors etc. 5. Problem of Security Various sites are not properly looked at ensure whether customers money safe in cyber world or not.
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3.2.4.2 TRADITIONAL BANKING VS NET BANKING

N e t b a n k i n g o r i n t e r n e t b a n k i n g w o r k s m u c h lik e t r a d i t i onal banking. The primary reconciled using phone computer to difference is that in rather than paper net o r th banking e account and information is accessed, payments are made and statements complete

t ransactions. Instead o f going down t o local branch office when one bank online he/she can accomplish multiple tasks at once with the click of a button. Online banking is rapidly becoming more and more popular as consumers recognize the advantages online banking has to offer. For one most banks charge fewer fees if you take advantage of their online banking services. You can also stop receiving paper statements if you like in many cases and conduct 95% of your business over the Web when you take advantage of Internet banking. Wh at to Internet Banks do? The same th ings traditional banks do . They h old onto ou r money and lend it out to others respectively. The manage loans and help us keep track of our finances. Chances are if you own a bank account at a traditional bank they offer some type o f Internet banking o r online services. The next time you stop into your branch office you should ask them about online banking. You may find once you start you have no desire to go back to traditional banking. For those that have a hard time keeping track o f paper statements, Internet banking i s a life saver. Internet banking is also advantageous for frequent travellers that need to keep a close eye on their finances from abroad

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3.2.4 .3 HDFC NET BANKING

Net Banking services provides access to account information, products and other services (including transactions of non-financial a n d f i n a n c i a l innature) as time customers Net advised to time through by to th e th e Bank f r o m

t h e w e b s i t e o ft h e B a n k .

B a n k i n g S e r v i c e s a l s o i n c l u d e th e s web sit e

e r v i c e s f o r Demat account, Credit Cards and loan on the website of the Bank. Th e H D F C B a n k ( www.hdfcbank.com) a lso features two versions o f a demo facility - one "interactive" and th e other "guided" - making i t possible for even Internet illiterates to get comfortable with its services. Net Banking is an incredibly convenient and powerful tool, letting you do everything you want with your accounts at the click of a mouse. Its Real Time, giving you up-to-the-second details on your account. All you need to Log in is your Customer ID and IPIN (Net Banking password). Your Customer ID is mentioned on your account statement/ account welcome letter (Current account / HUF customers can get it from the branch). IPIN can re-generate online in case you don't have it. WHAT IS SECURE ACCESS? HDFC Bank has implemented an extra security solution for its customers Secure Access Secure Access is an additional layer of security that is essentially a solution protecting your account from hackers and fraudsters. Secure Access requires a one-time registration effort from your side.

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Currently following transactions are covered under Secure Access

Transfer from one HDFC Bank account to other HDFC Bank account holders (under distinct customer ID) Transfer from HDFC Bank account to any other Bank's account (also known as RTGS & NEFT) Visa Card Pay Third Party Demand Draft through Net Banking Direct Pay / Online Shopping Let us take you through the steps involved in Secure Access and how it serves to protect your account HDFC Bank's Net Banking login is now a two-step process with Secure Access image and text verification.
o o

Screen 1 is where you key-in your customer id Screen 2 is for your password

This is done as a security measure. On putting in your customer id, our backend will verify if you are registered for Secure Access.

If you are not registered for Secure Access, the next screen will have a box to key-in your password. If, however, you are registered for Secure Access, you will be shown an image and text that have been personalised by you during registration for Secure Access. To register for Secure Access you will need to: Personalise an image Personalise text Answer 5 questions
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Features of Net Banking

Check your account balances and download 5 years statements instantly Transfer funds between accounts within HDFC Bank and other Bank Accounts Register for Third Party Transfer services online Book Fixed Deposits / Recurring Deposits online Request a demand draft/ Cheque book / account statement Pay Utility and Credit Card Bills Request Stop Payment of a cheque View Loan details View Tax Credit Statement. Apply in IPO Invest in Mutual Funds online Update your PAN Purchase Gift Card Request for Debit card PIN regeneration

REGISTERATION PROCESS OF NET BANKING

We have made registering for Net Banking quick and easy. The many ways through which you can register/regenerate are: 1. Online
o o

Using your Debit Card Details Generating a OTP (One Time Password) a. Steps to register using Debit Card

Enter the Cust ID Select Active Debit Card Input your Debit Card PIN, Card Expiry and set your own IPIN (Password) Set your own IPIN(Password)
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Login to Net Banking using the newly set IPIN (Password) b. Steps to register by generating a OTP (One Time Password)

Enter the Cust ID Select the Mobile number. OTP will be sent on selected mobile number Input the OTP received on mobile Set your own IPIN(Password) Login to Net Banking using the newly set IPIN (Password) Click here to know more about OTP 2. Phone Banking Call the Phone Banking number in your city and give your Customer ID and Telephone Identification Number (TIN) or Debit Card and PIN Our Phone Banking agent will take your Net Banking registration request We will courier the IPIN to your mailing address in our records within 5 days 3. Download the form Download the Net Banking registration form (individual or corporate) Fill in the form and submit it to your nearest HDFC Bank branch We will courier the IPIN to your mailing address in our records 4. ATM Visit your nearest HDFC Bank ATM Enter your HDFC Bank Debit Card number and your ATM PIN Select 'Other Option' from the main screen Select 'Net Banking Registration' and confirm We will courier the IPIN to your mailing address Note: IPIN (Net Banking Password) regeneration request received at branches would be charges at Rs.50 per instance (effective 1st January 2012). Click here to know more.

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3.2.4.4 NETBANKING ON MOBILE

Get access to your account any time you want with Net Banking on Mobile. Once you have registered for Net Banking you can automatically access Net Banking on Mobile, you dont even need to register separately. Just ensure your mobile is Internet enabled and you can conduct transactions on a WAP site specifically configured for mobiles. Features of Net Banking on Mobile View your account summary and fixed deposit summary. Request for statements, cheque books and stop payments of cheques. Transfer funds to your other bank accounts, even those in other banks. Pay you utility bills. Make Credit Card Payments. Net Banking on Mobile works best on the following mobile platforms: Symbian (S60 5th Edition OS) BlackBerry (OS 5.0) Android (OS 2.1) iPhone (iPhone 3G/3GS/4) Windows (OS 5.0) Mobile Banking through browser works best on the following mobile platforms: Symbian (S60 5th Edition OS) BlackBerry (OS 5.0) Android (OS 2.1) iPhone (iPhone 3G/3GS/4) Windows (OS 5.0)

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CHAPTER 4
LITERATURE REVIEW

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LITERATURE REVIEW
1

Joshua A J (PhD), Moli P Koshy (PhD), April 2011, Usage Patterns of

Electronic Banking Services by Urban Educated Customers: Glimpses from India, Journal of Internet Banking and Commerce The major banks in India are increasingly providing services through electronic channels such as ATMs, internet banking, tele banking and mobile banking. This paper was an attempt to examine the various usage patterns by customers of these technology enabled services provided. A survey research was conducted among the customers of some of the leading banks in India who are residing in the selected metro and urban banked centres in India. The findings show that though ATMs have been widely adopted, the level of adoption of other electronic banking means like internet banking, tele banking and mobile banking despite their potential are yet to pick in a big way. The usage patterns revealed through this study has several pointers to bank managements in India.
2

Neha Dixit (MBA), Dr. Saroj K. Datta (August 2010), Acceptance of E-

banking among Adult Customers: An Empirical Investigation in India, Journal of Internet Banking and Commerce

Joshua A J(PhD), Moli P Koshy( PhD), April 2011, Usage Patterns of Electronic Banking Services by Urban

Educated Customers: Glimpses from India, Journal of Internet Banking and Commerce, vol. 16, no.1

Neha Dixit(MBA), Dr. Saroj K. Datta(August 2010), Acceptance of E-banking among Adult Customers: An

Empirical Investigation in India, Journal of Internet Banking and Commerce, vol. 15, no.2 (http://www.arraydev.com/commerce/jibc/)

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Internet banking is a form of self-service technology. The numbers of Internet users have increased dramatically, but most of them are reluctant to provide sensitive personal information to websites because they do not trust e-commerce security. This paper has investigated the factors which are affecting the acceptance of e-banking services among adult customers and also indicates level of concern regarding security and privacy issues in Indian context. Primary data was collected from 200 respondents, above the age of 35, through a structured questionnaire. Statistical analysis, descriptive statistics was used to explain demographic profile of respondents and also Factor and Regression analyses were used to know trend of internet use and factors affecting e-banking services among adult customer in India. The finding depicts many factors like security & privacy, trust, innovativeness, familiarity, awareness level increase the acceptance of e-banking services among Indian customers. The finding shows that in spite of their security and privacy concern, adult customers are willing to adopt online banking if banks provide them necessary guidance. Based on the results of the study, Banks managers would segment the market on the basis of age group and take their opinion and will provide them necessary guidance regarding use of online banking
3

Kenneth B. Yap, David H. Wong, Claire Loh, Randall Bak(2010), Offline

and online banking - where to draw the line when building trust in ebanking?, International Journal of Bank Marketing The purpose of this paper was to examine the role of situation normality cues (online attributes of the e-banking web site) and structural assurance cues (size and reputation of the bank, and quality of traditional service at the branch) in a consumer's evaluation of the trustworthiness of e-banking and subsequent adoption behaviour. Data were collected from a survey and a usable sample of
3

Kenneth B. Yap, David H. Wong, Claire Loh, Randall Bak(2010), Offline and online banking where to draw

the line when building trust in e-banking? International Journal of Bank Marketing, Volume: 28, Issue: 1 2010

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202 was obtained. Hierarchical moderated regression analysis was used to test the model. It has been found from the research that Traditional service quality builds customer trust in the e-banking service. The size and reputation of the bank were found to provide structural assurance to the customer but not in the absence of traditional service quality. Practical implications of the research were that Bank managers have to realize that good service at the branch is a necessary condition for the promotion of e-banking. They cannot rely on bank size and reputation to sell e-banking. This was the first study that examines how traditional service quality and a bank's size and reputation influences trust in e-banking.
4

Rahmath Safeena, Abdullah, Hema Date (April 2010), Customer

Perspectives on E-business Value: Case Study on Internet Banking, Journal of Internet Banking and Commerce Information technology is considered as the key driver for the changes taking place around the world. Internet banking (IB) is the latest and most innovative service offered by the banks. The transformation from the traditional banking to e-banking has been a 'leap' change. The evolution of e-banking started from the use of Automatic Teller Machines (ATMs) and telephone banking (telebanking), direct bill payment, electronic fund transfer and the revolutionary online banking. This study has determined the consumers perspective on internet banking adoption.
5

Juan Carlos Roca, Juan Jos Garca, Juan Jos de la Vega (2009), The

importance of perceived trust, security and privacy in online trading systems, Information Management & Computer Security
4

Rahmath Safeena, Abdullah, Hema Date(April 2010), Customer Perspectives on E-business Value: Case Study

on Internet Banking, Journal of Internet Banking and Commerce, vol. 15 no.1(http://www.arraydev.com/commerce/jibc)

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The purpose of the paper was to test an augmented technology acceptance model (TAM) in the online financial trading context. The research aims to investigate how e-investors are influenced by perceived trust, security, and privacy jointly with traditional TAM constructs. The research examines einvestors' behavioral intention to use online dealers' and stockbrokers' services. The model suggests that perceived trust jointly with perceived usefulness and perceived ease of use are important antecedents of intentions; the hypotheses are statistically tested using structural modeling. The results from the study suggested that perceived trust, usefulness and ease of use are important issues in online trading systems. The findings suggest that online financial dealers and stockbrokers must improve the security of the online system since e-investors form perceptions about its perceived security and when these perceptions are confirmed, their trust is enhanced and consequently they are more likely to use these online services particularly if the financial information is useful for their purposes. This paper was one of the first that has empirically tested the link between trust, security, privacy, usefulness, ease of use and behavioral intention in the online trading context.

Juan Carlos Roca, Juan Jos Garca, Juan Jos de la Vega(2009), The importance of perceived trust,

security and privacy in online trading systems, : Information Management & Computer Security, Volume: 17 Issue: 2

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CHAPTER 5
RESEARCH METHODOLOGY

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5.1 INTRODUCTION
Research is scientific and systematic search for relevant information on a specific topic. In fact research is an art of scientific investigation. A careful investigation or inquiry especially through search for new facts in any branch of knowledge. is also called research. Redman & Mory defines research as a systematized effort to gain new knowledge. Some people consider research as a movement from the known to unknown. It is actually a voyage of discovery. Research is also considered as an academic activity. According to Clifford woody research comprises of defining and redefining problems, formulating hypothesis or suggested solutions; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research methodology is a way to systematically solve the research problem. In research methodology we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. Researcher not only need to know research methods or techniques but also need to know which of these method or techniques are relevant and which are not and what would they mean and indicate and why. Researchers also need to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide that certain techniques and procedures will be applicable to certain problems and others will not.

When we talk of research methodology we not only talk of the research method but also consider the logic behind the methods we use in the context of
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our research study and explain why we are using a particular method or technique and why we are not using other so that research results are capable of being evaluated either by the researcher himself or by other. Why a research study has been undertaken, how the research problem has been define and what way the hypothesis has been formulated, what data have been collected and what particular method has been adopted, why particular technique of analysis data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. For example, an architect, who designs a building has to consciously evaluate the basis of this decision i.e. he has to evaluate why and on what basis he selects particular size, number and location of door, windows and ventilators, uses particular materials and not other and the like. Similarly in research the researcher has to expose the research decision to evaluation before they are implemented. He has to specify very clearly and precisely what decision he selects and why he select them so that they can be evaluated by others also.

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5.2 RESEARCH OBJECTIVE

The current study was undertaken to achieve the following stated objectives: To kno w about the Net Banking service provided by HDFC Bank. To kno w th e cause wh y customers are using o r not using Net banking service.

To know the confidence of the customers of HDFC Bank in using these services. To study the popularity of the Net banking service among the customers of HDFC Bank.

To analyse awareness among customers using Net banking service of HDFC bank.

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5.3 RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of Data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research design is the conceptual structure within which research is conducted. This research was descriptive in nature.

Research Data Source Research Method Research Technique Type of Questionnaire Type of Questions

: : : :

Descriptive & Objective Primary data Survey Method Questionnaire

: :

Structured Closed & Open ended Questions

No of Questions Place

: :

12 Vadodara

DESCRIPTIVE RESEARCH The research undertaken was a descriptive research as it was concerned with specific predictions, with narration of facts and characteristics concerning net banking service provided by HDFC Bank.

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5.4 SAMPLING DESIGN

The following factors have been decided within the scope of sample design UNIVERSE OF STUDY U n i v e r s e o f t h e s t u d y m e a n s a l l t h e p e r s o n s wh o a r e t h e customers of HDFC Bank in the world. THEORETICAL It covered all the individuals who are the customers of HDFC Bank in the world. ACCESSIBLE It covered all th e individuals who are the customers o f HDFC Bank in India who are SAMPLE SIZE A sample of minimum respondents was selected from various areas of Vadodara. An effort was made to select respondents evenly. The survey was carried out on 150 respondents. SAMPLE UNIT In thi s project sampling unit consisted o f th e various individuals who had their bank accounts with HDFC Bank. SAMPLING TECHNIQUE For the purpose of research convenient sampling technique was used. SAMPLING FRAME It consisted o f various sources from where information about the respondent is extracted. Mainly personal links and employees of HDFC Bank, Vadodara are used for getting information about the respondents ou r reach. In this study accessible population was customers o f HDFC Bank i n India.

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5.5 DA T A C O LL E CT I O N & DA T A A NA L YS I S
DA T A C O L L E C T I O N
There were two types of data sources used in this research. These were SECONDARY DATA Secondary data is the data collected from already been use or published information like journals, diaries, books, etc .In this research project, secondary source used were various journals, and website of various online journals. PRIMARY DATA Pri mar y data is the data collected for th e first time fro m th e source and never have been used earlier. data can be collected through interviews, observations & questionnaires. In thi s project, an appropriate questionnaire was designed which was filled by the customers of HDFC Bank to know their opinions regarding the Net Banking service provided by HDFC Bank.

DATA ANALYSIS

TOOLS OF PRESENTATION It means what all tools are used to present the data in a meaningful way so that it becomes understandable. In this research tables and graphs were used for presenting data. TOOLS OF ANALYSIS In this research the tools of analysis used were percentages.

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5.6 LIMITATIONS OF THE STUDY

The following were the limitations of the study The customers study was conducted only in Vadodara city. The results therefore are confined to this area only and need not necessarily be applicable to other areas. The sample size of the customers was small, so it was not able to convey the attitude of the customers.

Inadequate time was the major constraints during the project work.

Respondents might have some biased views and this could have affected the findings to a certain extent.

In the questionnaire, questions are very limited, because it is very difficult to get the information from the busy officials.

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CHAPTER 6
DATA ANALYSIS AND INTERPRETATION

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DATA ANALYSIS
1.You have which type of bank account? Table 6.1
Current A/c 21 Saving A/c 118 CA & SA 11 OTHER 39

12 0 10 0 80 60 40 20 0 Current A/c Saving A/c CA & SA OTHER Current A/c Saving A/c CA & SA OTHER

Figure 6.1 : Type o f Account INTERPRETATION In this question It was found 129 saving a/c holders and 32 current a/c holder and among them 11 respondents have both the a/c and mostly they are businessman while other respondents have Saving a/c and Fixed Deposit. Here I have found the opportunity to sell FD, mutual fund and other investment options because out of 150 respondents only 39 have invested in others .

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2.Which are the services are you aware of that HDFC is providing? Table 6.2 :
Net Banking 94 Mobile Banking 60 Debit Cards 150 Phone Banking 32 127 Credit Card

150 1 0 0 5 0 0 S e r i e s 1

Net Bank ing Mobil e Bank ing Debit Card s Phon e Bank ing Credit Card

Figure 6.2 : Services o f HDFC bank.

INTERPRETATION When asking about the aware of service, 94 respondents are aware of the net banking, 73 debit cards, 63 homes banking 48 phone banking 37 mobile banking and 18

respondents not aware of none of the service.

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3.Which services are you currently using for your convenience? Table 6.3 :
Net Banking 100 Mobile Banking 23 Debit Cards 149 Phone Banking 23 48 Credit Card None of these 1

150 No. of respodents 100 50 0 N Mobile Debit et Banking Cards Banki Banking ng Phone Card

Net Banking Mobile Banking Debit Credit None of these Cards Phone Banking Credit Card None of these

S e r v i c e s

Figure 6.3 : Services used for convenience. INTERPRETATION

From this question, out of 150 respondents 149 are using Debit Card, 100 are using net banking, 48 are using Credit Card facilities, and 23 are using mobile banking and phone banking. It was found that awareness, no. of users of net banking is gud.100 respondents are using this service. Users of phone banking is very less.
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4.Do you like Net banking of HDFC? Table 6.4 ; Yes 65% No 35%

Yes No

Figure 6.4 : Respondents who likes Net banking. INTERPRETATION Fro m t hi s question, It was found that, the respondents who are using Net Banking and s ervices, 65% likes th e services are not good enough . 35 % respondents feels that services

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5.Which services do you use frequently in Net Banking? Table 6.5 :

View accounts statements 84 Transfer funds accounts 32 49 Create FD/RD online Request a demand draft 5 29 16 Pay bills order a cheque book Request stop payment on a cheque 11 13 Others

balances & between

Others

13

Request stop payment on a cheque 11 16 order a cheque book Pay bills Request a demand draft 5 Create FD/RD online Transfer funds between accounts View accounts balances & statements 0 20 40 60 32 84 80 49 29

100

Figure 6.5 : Services frequently used i n Net Banki ng.

INTERPRETATION

It was found that the majority of the respondents used the net banking service for viewing accounts and balances, that is 84 followed by 49 and 32 of the respondents who availed th e same for transferring th e funds between accounts and for paying the bills respectively. Marginally only 5 respondents used the same service to request a demand draft. I t ca n b e inferred t h a tth e majority pondents used of th e r e s the net

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banking

s e r v i c e provided by HDFC Bank to view their

accounts and balances.

6. Due to which reason you use Net Banking of HDFC bank? Table 6.6 :
Convenience Curiosity Low cost 131 33 62 Quick service 109 87 41 Maintenance Safety User friendly 74

140 1 2 0 1 0 0 8 0 6 0 40 33 2 0 0

131 109 87 62 4 1 7 4

Figure 6.6 : Reason for which Net Banking is used. INTERPRETATION It can be concluded that the majority of the respondents regarded that the most important reason for which Net Banking service is not being used popularly was that it

does not offer receipts on payments and the least important reason was that it is more expensive than going to a branch.

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7. How long has your association been with HDFC (year)? Table 6.7 :
less than 2 years 19 2 to 4 years 51 more than 4 years 80

less than 2 years 2 to 4 years more than 4 years

Figure 6.7 : Association has been with HDFC bank. INTERPRETATION It can be concluded that the majority of the respondents has been

associated with the bank more than 4 years, that is 80 respondents. Very few respondents were newly associated with HDFC bank.

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8. Why did you choose HDFC bank? Table 6.8 :

Low Risk Location Advantage Less paper work 63 117 55 Facilities provided by Bank 114 Customer Friendly Approach 67 32 Speedy Delivery Reasonable Interest Rates 17 47 Other

120 100 80 60 40 20 0

117

114 Low Risk 67 32 47 17 Location Advantage Less paper work Facilities provided by Bank Customer Friendly Approach Speedy Delivery

63

55

Figure 6.8 : Reason for using HDFC bank. INTERPRETATION From this question It was found that most of the respondents are using HDFC Bank because of Location Advantage and Facilities Provided by Banks. So they can go for other branch office and ATM services at different place and they should have to give more facilities to their customers. So they are always staying with HDFC Bank.

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9. Are you satisfied with service which provided by the HDFC bank? Table 6.9 :
Satisfied 112 Moderately satisfied 28 Dissatisfied 10

1 2 0 100 80 60 40 20 10

112

Series1 28

0 Satisfied M o d e r a t e l y s a t i s f i e d Dissatisfied

Figure 6.9 : Satisfaction due to services provide by HDFC bank.

INTERPRETATION From this question 112 respondents are satisfied, 28 respondents are moderately satisfied, and only 10 out of 150 respondents are dissatisfied with the bank.

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10.Are you satisfied with the using of Net banking? Table 6.10 :
Satisfied 65 Moderately satisfied 26 Dissatisfied 9

Satisfie d Moderately satisfied Dissatisfied

Figure 6.10 : Satisfaction due to Net banking service provided by HDFC bank INTERPRETATION From this question, It was found that 112 respondents are satisfied, 28 respondents are moderately satisfied, and only 10 out of 150 respondents are dissatisfied with the net banking services provided by HDFC bank.

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11.Which difficulties do you face while using the Net Banking service of HDFC Bank? Table 6.11 :
Logging in to your account Making transactions Safety issues Unable to understand webpages Regularly changing the IPIN and Password 14 31 49 6 7

50 45 40 35 30 25 20

49 31 14 15 6 7 1 0 5 0 Series1 Series2

Figure 6.11 : Difficulties faced while using Net Banking. INTERPRETATION It was found that the majority of the respondents said that safety issues was the ma jor difficulty that they faced while using the Net Banking service, followed b y 3 1 respondents who dents felt that making transactions with the bank through Net Banking was difficult. However, 7 r e s p o n

f e l t t h a t c h a n g i n g th e I P I N a n d P a s s w o r d regularly was difficult. It

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was inferred that the majority of the respondents regarded the safety issues as the major difficulty that they faced while using the Net Banking service.

12. What suggestions do you have to bring about improvement in Net Banking of HDFC BANK ?

INTERPRETATION This is one of the most important questions as it will give the services which the customers want from the Net banking apart from the existing ones so that the bank can have some more insight & chance to make it a different entity from the others. Most of respondents suggest that WebPages should design in such a way that everybody can easily access and understand them. Customers mentioned about th e security, they suggest that bank should take some steps towards this issue s o custo mer feel more secure while accessing accounts. Respondents also suggest that bank should provide a receipt for the transaction done by Net Banking.

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CHAPTER 7 : FINDINGS OF THE STUDY

The findings of the study were as follows The majority of the respondents have been HDFC Banks customer for more than 4 years. The ma jorit y o f the respondents o f the respondents were aware o f th e net banking service. The majority of the respondents have availed the net banking service. The majority of the respondents used the net banking service provided by HDFC Bank to view their accounts and balances. The majority of the respondents regarded convenience as the most important reason for which Net Banking service should be availed and curiosity as the least important reason for the same. The majority o f th e respondents faced the safety issues was th e major difficulty that they faced while using the Net Banking service. The majority of the respondents felt that the net banking service was better than traditional banking. Th e m a j o r i t y o f th e r e s p o n d e n t s r e g a r d e d t h a t th e m o s t i m p o r t a n t r e a s o n f o r which Net Banking service i s not being used popularly wa s that it does not offer receipts on payments and the least important reason was that it is more expensive than going to a branch. The majority of the respondents agreed that net banking is convenient and safe to use and felt that transaction costs are lesser in case of net banking service while majority of the respondents disagreed that net banking facility reduces the frequency of customer visits to a physical bank.

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CHAPTER 8 : RECOMMENDATIONS
Following are the recommendations of the study T h e b a n k s h o u l d m a k e s o m e e f f o r t st o f a m i l i a r i z e th e c u s t o m e r s t o v a r i o u s s e r v i c e s t h r o u g h demonstration. The bank should adopt more upgraded techniques to make their customer feel more secure while accessing their accounts.

Effective awareness campaigns should b e undertaken b y th e banks to make their customers more aware of net banking service. The bank should make a effort to provide a platform from where th e customers can access different accounts at single time without extra charge.

The bank should take steps to create a trust in mind of custo mers towards security of their accounts. The HDFC bank should introduce more services which can be accessed through Net Banking like advice on investment, TDS, etc.

Still a number of people using Net-Banking is not significant, so create awareness among customers by telling them advantages of system.

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LERNING FROM PROJECT

A summer project is a golden opportunity for learning and self development. It is a great pleasure to be a part of HDFC Bank as a trainee. As summer trainee while my training , I have learnt many things. I have learnt various operations which are performed by a Personal Banker. In the bank, I have learnt, how to feel a form for opening a Savings Account, how to make a FD and RD online as well as manually. They also taught me the registration process for Net Banking and how to access and operate an account by using Net Banking. As a trainee I got a chance to gain a practical knowledge about the banking sector and the culture of HDFC Bank. Due to training, I become more punctual and hard working. During training, my main work is to talk with customers who came to the bank and convince them for doing registration for Net Banking. I have to explain the benefits of net banking. The staff of HDFC Bank, Karelibaug branch, vadodara is very helping and cooperative. They give me a proper guidance during my whole training. They explain me the day to day functions of the bank Now a days no one has time, all asked for instant services. Therefore, HDFC Bank has launched a project named Insta Gratified. Under this project they provided most of banking services instantly by using Net Banking. Lastly, I want to thank all the staff members, specially the branch manager to give me such a big opportunity to take training in the bank. So that with the export knowledge and guidance given by my guide, it is possible to understand various functions of banking system.

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C ON C L U S I ON
The introduction of new technology has been changing the attire o f banking. TECHNOLOGY is allowing banks to offer new products, operate more efficiently, raise productivity, expand geographically and compete globally.

Net-Banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. Today, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom of time.

In HDFC bank, the rise of Net-banking is redefining customers.

business

relationships. It strengthen the relationship between the bank and

Majority of the respondents were aware of the Net Banking, Mobile Banking, Phone Banking, etc.

Since there are very less mistakes that can occur while doing Net-banking and it works even on Holidays so the Customers should be taught how to do Net-Banking because its much easier and much faster than Manual Banking.
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BIBLIOGRAPHY
REFEREN CES
Joshua A J(PhD), Moli P Koshy( PhD), April 2011, Usage Patterns of Electronic Banking Services by Urban Educated Customers: Glimpses from India, Journal of Internet Banking and Commerce, vol. 16, no.1

Neha Dixit(MBA), Dr. Saroj K. Datta(August 2010), Acceptance of E- banking among Adult Customers: An Empirical Investigation in India, Journal of Internet Banking no.2 and Commerce, vol. 15,

(http://www.arraydev.com/commerce/jibc/)

Kenneth B. Yap, David H. Wong, Claire Loh, Randall Bak(2010), Offline and online banking where to draw the line when building trust in e- banking? International Journal of Bank Marketing, Volume: 28, Issue: 1 2010 Rahmath Safeena, Abdullah, Hema Date(April 2010), Customer Perspectives on business Value: Case Internet Banking,Journal Internet Banking Commerce, vol. 15 Study of and Eon

no.1(http://www.arraydev.com/commerce/jibc)

 Juan Carlos Roca, Juan Jos Garca, Juan Jos de la Vega(2009), The importance Information Volume: 17 Issue: 2 Management & of perceived trust, security and privacy in online trading systems, : Computer Security,

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BOOKS
Parameswaran R., Natarajan S. Indian banking (Theory) 4 edition, S. Chand Group
th

Jatana Rimpi, Uppal R.K. E-Banking in India challenges and opportunities st 1 edition, Neha Publishers & Distributors

WEBLIOGRAPHY

http://www.hdfcbank.com/aboutus/default.htm (cited on 18th june 2012) http://www.hdfcbank.com/personal/ways_to_bank/ways-to-bankdetails/netbanking/gts8mitq (cited on 2nd july 2012) http://www.hdfcbank.com/personal/ways_to_bank/ways-to-bankdetails/phonebanking/gts8mitt (cited on 21st june 2012) http://www.hdfcbank.com/personal/ways_to_bank/ways-to-bankdetails/mobilebanking/h35j3wve (cited on 26th june 2012) http://www.hdfcbank.com/personal/ways_to_bank/ways-to-bank-details/instaalerts-sms-and- email/gts8mitx (cited on 27th june 2012)

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ANNE XURE
Note:-

QUESTIONNAIRE

We are the students of MBA Program. And you are invited to participate in the survey to find out the customer Awareness and Perception towards Net Banking Services. The information filled and provided by you would be confidential and used for academics purpose only. Name:Gender:Education:Graduation Age group: 66 Income:Male 1 12 21-35
st th

Female Graduation 36-50 51-65 Post above

Below 50000 5 0 0 0 0 1 0 0 0 0 0 100000-200000 2, 00,000 above

Occupati on:-

nal Professio

ss Busine men

Govt. Employ ee Other

Pvt.Firm

1. You have which type of bank account? Current Saving other

2. Which are the services are you aware of that HDFC is providing? Net Banking Mobile Banking Debit Card none of these

Phone Banking Credit Card

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3. Which services are you currently using for your convenience? Net Banking Mobile Banking Debit Cards

Phone Banking Credit Card 4.Do you like Net banking of HDFC? Yes No

none of these

5.Which Net Banking services do you use frequently ? a) View accounts balances & statements b) Transfer funds between accounts c) Create FD/RD online d) Request a demand draft e) Pay bills f) order a cheque book g) Request stop payment on a cheque 6. Due to which reason you use Net Banking of HDFC bank? a) Convenience b) Curiosity c) Low cost d) Quick service e) Maintenance f) Safety g) User friendly h) 7. How long has your association been with HDFC (year)? less than 2 years 2 to 4 years

more than 4 years 8. Why did you choose HDFC bank? Low risk Location advantage Less paper work Facilities provided by Bank Customer friendly approach Speedy delivery Reasonable interest rate Other
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9. Are you satisfied with service which provided by the HDFC bank? Satisfied Moderately satisfied Dissatisfied

If Dissatisfied, specify reasons for dissatisfaction 1) Lower rates of interest on deposit 2) Discourteous behavior of staff 3) Rigidity of role format and procedures 4) Poor/ Unsatisfactory services 5) Better facilities offered by other banks 6) If any other 10.Are you satisfied with the using of Net banking? Satisfied Moderately satisfied Dissatisfied

If Dissatisfied, specify reasons for dissatisfaction 1) 2) 3) 4) 5) 6) 7) Net banking web pages are confusing Use of computer or internet is difficult Neither friends nor relative use internet Net banking facility is not secure It is more expensive than going to a branch Net banking offers no receipts on payments Net banking is not reliable

11.Which difficulties do you face while using the Net Banking service of HDFC Bank? a) Logging in to your account b) Making transactions c) Safety issues d) Unable to understand webpages e) Regularly changing the IPIN and Password 12. What suggestions do you have to bring about improvement in Net Banking of HDFC BANK ?
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