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A Project Report On Study Of Consumer Awareness For NEFT/RTGS Products in BOB

Submitted by:- NEEL SHAH 2011-2013

LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Index Particulars Preface Acknowledgement Overview of Banking industry Overview of the NEFT/RTGS Determination of project Objective Research methodology Marketing research process Service marketing Ps Analysis 1) Graphical analysis 2)Chi-square analysis To Summarize Findings Suggestions Bibliography Questionnaire of respondent

Pg. No. 3 4 5 18 23 24 25 26 33 41 42 54 75 76 79 80 81

LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

Summer internship programmed is one of the remarkable features of the M.B.A. student are required to undergo the training during the ending of academic year. As an M.B.A. student the internship programmed which was conducted by our university. I worked as a trainee with BANK OF BARODA in finance department. M.B.A. is professional course so it becomes a very important for the M.B.A. student that they get exposure to the business world. The internship programmed forms an important part of curriculum a student of management must have some basic knowledge about corporate world. The main purpose of this programmed is to get practical knowledge about management & working of the corporate industry which we cannot get through reading of the book.

In short we can say that being a student of M.B.A. has got a change & opportunity to work with corporate world.

LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

Today in every field, practical training is an importance role in making a trainee a perfect in his work, or to get asquint with actual corporate environment where he has to work. Today, generally everywhere practical training is provided with a view to explain various matters practically. I have joined M.B.A programmer. In this programmed we are given practical training. As a part of this training we have worked as a trainee where we learned more than we ever learned. Firstly I take this opportunity to convey my sincere gratitude to the director of my Institute of Business Administration Mr. P.K.MEHTA sir & Prof. RINAL SHAH for providing me an opportunity to apply my theoretical knowledge through the grand project as a part of the M.B.A curriculum. Also I thankful to the staff of BANK OF BARODA & my mentors who are helpful to me in every manner, Mr. Dashrathlal sir, Mr. Subhash bhai, & my mentor Mr. Mukul.N.Oza also our HR manager Mr. PRIYA KUMAR allot a branch & guiding us.

LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

Overview of banking industry

1. INTRODUCTION 1.1Industry definition: The Banking industry comprises of segments that provide financial assistance and advisory services to its customers by means of varied functions such as commercial banking, wholesale banking, personal banking, internet banking, mobile banking, credit unions, investment banking and the like. With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India. With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south. Banks are among the main participants of the financial system in India. Banking offers several facilities & Opportunities. This section provides comprehensive and updated information, guidance and assistance in all areas of banking in India. Bank of Hindustan, set up in 1870, was the earliest Indian Bank . Banking in India on modern lines started with the establishment of three presidency banks under Presidency Bank's act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras. The commercial banking structure in India consists of: Scheduled Commercial Banks & Unscheduled Banks. Banking Regulation Act of India, 1949 defines
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Banking as "accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheques, draft, order or otherwise." The arrival of foreign and private banks with their superior state-of-the-art technology-based services pushed Indian Banks also to follow suit by going in for the latest technologies so as to meet the threat of competition and retain customer base. The evolution of IT services outsourcing in the Indian banks has presently moved on to the level of Facilities Management (FM). Banks now looking at business process management (BPM) to increase returns on investment, improve customer relationship management (CRM) and employee productivity. For, these entities sustaining long-term customer relationship management (CRM) has become a challenge with almost everyone in the market with similar products. 1.2 Classification of the Industry Public Sector Banks: Almost 80% of the businesses are still controlled by Public Sector Banks (PSBs). PSBs are still dominating the commercial banking system. Shares of the leading PSBs are already listed on the stock exchanges. The PSBs will play an important role in the industry due to its number of branches and foreign banks facing the constraint of limited number of branches. Hence, in order to achieve an efficient banking system, the onus is on the Government to encourage the PSBs to be run on professional lines. Private Sector Banks: The RBI has given licenses to new private sector banks as part of the liberalization process. The RBI has also been granting licenses to industrial houses. Many banks are successfully running in the retail and consumer segments but are yet to deliver services to industrial finance, retail trade, small business and agricultural finance. Foreign banks:

LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

Foreign banks have been operating in India for decades with a few of them having operations in India for over a century. The number of foreign bank branches in India has increased significantly in recent years since RBI issued a number of licenses - well beyond the commitments made to the World Trade Organization. The presence of foreign banks in India has benefited the financial system by enhancing competition, resulting in higher efficiency. There has also been transfer of technology and specialized skills which has had some "demonstration effect" as Indian banks too have upgraded their skills, improved their scale of operations and diversified into other activities. At a time when access to foreign currency funds was a constraint for the Indian companies, the presence of foreign banks in India enabled large Indian companies to access foreign currency resources from the overseas branches of these banks. Also with the presence of foreign banks, as borrowers in the money market and their operation in the foreign exchange market has resulted in the creation and deepening of the inter-bank money market. Now, it is the challenge for the supervisors to maximize the advantages and minimize the disadvantages of the foreign banks' local presence. 1.3 Industry Segments Commercial Banking Wholesale banking Investment Banking Internet banking Mobile banking Rural banking Micro Finance Industrial Finance

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a2. Market Dynamics 2.1 Market Overview The banking industry too has evolved rapidly over the last few years in India due to the availability of cheaper technology and falling communication costs. De-regulation, competition from non-financial players, new compliance requirements, and changing customer expectations has added complexity and challenges to banking systems and processes. Banks, however, face an uphill task in reaching out to the customers in remote locations such as villages. There is a lower level of literacy and access to Internet. Setting up branches involves higher cost and operating expenses, and lower return on investment. Given the 742-million rural population, the penetration of deposit accounts languishes at a deplorable 18 per cent. (Source: Extending Banking to the poor in India, Amit Singhal and Bikram Duggal, ICICI Bank). Qualitative growth: The growth of banking in the coming years is likely to be more qualitative than quantitative, according to the report. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs 40, 90,000 crore. That will form about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Banks assets are expected to grow at an annual composite rate of growth of 13.4 per cent during the rest of the decade against 16.7 per cent between 1994-95 and 2002-03. On the liability side, there is likely to be large additions to capital base and reserves. As the reliance on borrowed funds increases, the pace of deposit growth may slow down. On the asset side, the pace of growth in both advances and investments is forecast to weaken. The high GDP growth in India is creating lots of job opportunities in urban and semi-urban India and it will go further into rural India increasing the potential for rural entrepreneurships and rural growth with higher per-capita income and savings opportunities.
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Investment in Indian market India, among the European investors, is believed to be a good investment despite political uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies. India presents a vast potential for overseas investment and is actively encouraging the entrance of foreign players into the market. No companies, of any size, aspiring to be a global player can, for long ignore this country which is expected to become one of the top three emerging economies. Market potential: India is the fifth largest economy in the world (ranking above France, Italy, the United Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. It is also the second largest among emerging nations. (These indicators are based on purchasing power parity.) India is also one of the few markets in the world which offers high prospects for growth and earning potential in practically all areas of business. Yet, despite the practically unlimited possibilities in India for overseas businesses, the world's most populous democracy has, until fairly recently, failed to get the kind of enthusiastic attention generated by other emerging economies such as China. 1.2 Industry Segments: Public Sector Banks: Almost 80% of the business is still controlled by Public Sector Banks (PSBs). PSBs are still dominating the commercial banking system. Shares of the leading PSBs are already listed on the stock exchanges. The PSBs will play an important role in the industry due to its number of branches and foreign banks facing the constraint of limited number of branches. Hence, in order to achieve an efficient banking system, the onus is on the Government to encourage the PSBs to be run on professional lines. Private Sector Banks: The RBI has given licenses to new private sector banks as part of the liberalization process. The RBI has also been granting licenses to industrial houses. Many banks are successfully running in the retail and consumer segments but are yet to deliver services to industrial finance, retail trade, small business and agricultural finance.
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

Foreign banks:- Foreign banks have been operating in India for decades with a few of them having operations in India for over a century. The number of foreign bank branches in India has increased significantly in recent years since RBI issued a number of licenses - well beyond the commitments made to the World Trade Organization. The presence of foreign banks in India has benefited the financial system by enhancing competition, resulting in higher efficiency. There has also been transfer of technology and specialized skills which has had some "demonstration effect" as Indian banks too have upgraded their skills, improved their scale of operations and diversified into other activities. At a time when access to foreign currency funds was a constraint for the Indian companies, the presence of foreign banks in India enabled large Indian companies to access foreign currency resources from the overseas branches of these banks. Also with the presence of foreign banks, as borrowers in the money market and their operation in the foreign exchange market has resulted in the creation and deepening of the inter-bank money market. Now, it is the challenge for the supervisors to maximize the advantages and minimize the disadvantages of the foreign banks' local presence. 2.2 Trend Analysis Financial and Banking Sector Reforms The last decade witnessed the maturity of India's financial markets. Since 1991, every governments of India took major steps in reforming the financial sector of the country. The important achievements in the following fields are discussed under separate heads: Financial markets Regulators Non-banking finance companies The capital market Mutual funds Overall approach to reforms Deregulation of banking system Consolidation imperativ
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Financial Markets In the last decade, Private Sector Institutions played an important role. They grew rapidly in commercial banking and asset management business. With the openings in the insurance sector for these institutions, they started making debt in the market. Competition among financial intermediaries gradually helped the interest rates to decline. Deregulation added to it. The real interest rate was maintained. The borrowers did not pay high price while depositors had incentives to save. It was something between the nominal rate of interest and the expected rate of inflation. Regulators The Finance Ministry continuously formulated major policies in the field of financial sector of the country. The Government accepted the important role of regulators. The Reserve Bank of India (RBI) has become more independent. Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) became important institutions. Opinions are also there that there should be a super-regulator for the financial services sector instead of multiplicity of regulators. Development finance institutions FIs's access to SLR funds reduced. Now they have to approach the capital market for debt and equity funds. Convertibility clause no longer obligatory for assistance to corporate sanctioned by term-lending institutions. Capital adequacy norms extended to financial institutions. DFIs such as IDBI and ICICI have entered other segments of financial services such as commercial banking, asset management and insurance through separate ventures. The move to universal banking has started. Non-banking finance companies: In the case of new NBFCs seeking registration with the RBI, the requirement of minimum net owned funds, has been raised to Rs.2 crores. Until recently, the money market in India was narrow and circumscribed by tight regulations over interest rates and participants. The secondary market was underdeveloped and lacked liquidity. Several measures have been
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initiated and include new money market instruments, strengthening of existing instruments and setting up of the Discount and Finance House of India (DFHI). Long-term debt market: The development of a long-term debt market is crucial to the financing of infrastructure. After bringing some order to the equity market, the SEBI has now decided to concentrate on the development of the debt market. Stamp duty is being withdrawn at the time of dematerialization of debt instruments in order to encourage paperless trading. Mutual funds The mutual funds industry is now regulated under the SEBI (Mutual Funds) Regulations, 1996 and amendments thereto. With the issuance of SEBI guidelines, the industry had a framework for the establishment of many more players, both Indian and foreign players. The insurance industry is the latest to be thrown open to competition from the private sector including foreign players. Foreign companies can only enter joint ventures with Indian companies, with participation restricted to 26 per cent of equity. It is too early to conclude whether the erstwhile public sector monopolies will successfully be able to face up to the competition posed by the new players, but it can be expected that the customer will gain from improved service. The new players will need to bring in innovative products as well as fresh ideas on marketing and distribution, in order to improve the low per capita insurance coverage. Good regulation will, of course, be essential. Overall approach to reforms The last ten years have seen major improvements in the working of various financial market participants. The government and the regulatory authorities have followed a step-by-step approach, not a big bang one. The entry of foreign players has assisted in the introduction of international practices and systems. Technology developments have improved customer service. Some gaps however remain (for example: lack of an inter-bank interest rate benchmark, an active corporate debt market and a developed derivatives market). On the whole, the cumulative effect of the developments since 1991 has been quite encouraging. An indication of the strength of the reformed Indian financial system can be seen from the way India was not affected by the Southeast Asian crisis.
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Deregulation of banking system Prudential norms were introduced for income recognition, asset classification, provisioning for delinquent loans and for capital adequacy. In order to reach the stipulated capital adequacy norms, substantial capital were provided by the Government to PSBs. Government pre-emption of banks' resources through statutory liquidity ratio (SLR) and cash reserve ratio (CRR) brought down in steps. Interest rates on the deposits and lending sides almost entirely were deregulated. New private sector banks allowed to promote and encourage competition. PSBs were encouraged to approach the public for raising resources. Recovery of debts due to banks and the Financial Institutions Act, 1993 was passed, and special recovery tribunals set up to facilitate quicker recovery of loan arrears. Bank lending norms liberalized and a loan system to ensure better control over credit introduced. Banks asked to set up asset liability management (ALM) systems. RBI guidelines issued for risk management systems in banks encompassing credit, market and operational risks. A credit information bureau being established to identify bad risks. Derivative products such as forward rate agreements (FRAs) and interest rate swaps (IRSs) introduced. Consolidation imperative Another aspect of the financial sector reforms in India is the consolidation of existing institutions which is especially applicable to the commercial banks. In India the banks are in huge quantity. First, there is no need for 27 PSBs with branches all over India. A number of them can be merged. The merger of Punjab National Bank and New Bank of India was a difficult one, but the situation is different now. No one expected so many employees to take voluntary retirement from PSBs, which at one time were much sought after jobs. Private sector banks will be self consolidated while co-operative and rural banks will be encouraged for consolidation, and anyway play only a niche role. We finally come to convergence in the financial sector, the new buzzword internationally. Hi-tech and the need to meet increasing consumer needs is encouraging convergence, even though it has not always been a success till date. In India organizations such as IDBI, ICICI, HDFC and SBI are already trying to offer various services to the customer under one umbrella. This phenomenon is expected to grow rapidly in the coming years. Where mergers may not be possible, alliances between organizations may be effective. Various
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forms of bancassurance are being introduced, with the RBI having already come out with detailed guidelines for entry of banks into insurance. 2.3 Key Drivers of sustainability in the banking industry Lender's liability Lender's liability is associated with the financial risks banks face when granting or extending loans. Banks and other lenders rely on financial statements of companies when deciding whether to grant or extend credit. Under current reporting requirements, potential environmental liabilities can easily remain undiscovered unless a lender develops its own procedure to assess the environmental risks. Therefore, some banks can end up spending the money on clean-ups of sites contaminated through their clients' activities. Borrower's ability to meet financial obligations The borrower's obligation to clean up contaminated sites might impair his or her ability to repay a loan. The contamination might also reduce the value of the collateral. Prudent lenders are following the environmental trends and changes in regulatory framework to assess the possible implications of these changes on their clients' overall financial position. Growing environmental concerns The last few decades have been marked by numerous changes in the regulatory framework relating to environmental protection. Recent scientific discoveries of environmental and health risks associated with pollution have contributed to an increase in public demand for environmental quality. These growing concerns have contributed to a major shift in public perception of corporate roles in society. Influenced by these trends, some banks have begun looking closely into their own environmental and social performance. In many cases this effort has resulted in adoption of energy and resource efficiency programs within the institutions themselves.

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Business opportunities The traditional approach of the banking sector to sustainability is often regarded as reactive and defensive. However, several international banks have recently adopted innovative, proactive strategies to capture the opportunities associated with sustainability. They have developed new products such as ethical funds or loans specifically designed for environmental businesses to capture new market opportunities associated with sustainability. Risk and reward The ability to gauge the risks and take appropriate position will be the key to successful banking in the emerging scenario. Risk-takers will survive, effective risk managers will prosper and risk-averse are likely to perish, the report asserts. In this context, the report makes a very pertinent recommendation that risk management has to trickle down from the corporate office to branches. As audit and supervision shifts to a risk-based approach rather than transaction oriented, the risk awareness levels of line functionaries also will have to increase. The report also talks of the need for banks to deal with issues relating to `reputational risk' to maintain a high degree of public confidence for raising capital and other resources. 2.4 Issues and Implications Consolidation On the growing influence of globalization on the Indian banking industry, the report is of the opinion that the financial sector would be opened up for greater international competition under WTO. Opening up of the financial sector from 2005, under WTO, would see a number of global banks taking large stakes and control over banking entities in the country. They are expected to bring with them capital, technology, and management skills which would increase the competitive spirit in the system leading to greater efficiency. Government policy to allow greater FDI in banking and the move to amend Banking regulations Act to remove the existing 10 per cent cap

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on voting rights of shareholders are pointer to these developments, says the report. The pressure on banks to gear up to meet stringent prudential capital adequacy norms under Basel II and the various Free Trade Agreements that India is entering into with other countries, such as Singapore, will also impact on globalization of Indian banking. However, according to the report, the flow need not be one way. Some of the Indian banks may also emerge global players. As globalization opens up opportunities for Indian corporate entities to expand their business overseas, banks in India wanting to increase their international presence could naturally be expected to follow these corporate entities and other trade flows out of India. Alongside, the growing pressure on capital structure of banks is expected to trigger a phase of consolidation in the banking industry. In the past mergers were initiated by regulators to protect the interest of depositors of weak banks. In recent years, there have been a number of market-led mergers between private banks. This process is expected to gain momentum in the coming years, says the report. Mergers between public sector banks or public sector banks and private banks could be the next logical development, the report adds. Consolidation could also take place through strategic alliances or partnerships covering specific areas of business such as credit cards, insurance etc. Branch Authorization Policy As you are aware, the RBI announced a new Branch Authorization Policy in September 2005 under which certain changes were brought about in the authorization process adopted by the RBI for the bank branches in the country. As against the earlier system, where the banks approached the RBI, piece meal, throughout the year for branch authorization, the revised system provides for a holistic and streamlined approach for the purpose, by granting a bank-wise, annual aggregated authorization, in consultation and interaction with each applicant bank. The objective is to ensure that the banks take an integrated view of their branch- network needs, including branch relocations, mergers, conversions and closures as well as setting up of the ATMs, over a one-year time horizon, in tune with their own business strategy, and then approach the RBI for consolidated annual authorizations accordingly.
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There seems to be some misunderstanding in some quarters that, under the new policy, the banks have to wait for the annual authorization exercise and are constrained in approaching the RBI for any emergent authorization in between. Since the branch expansion planning of the banks is expected to be a well thought out, Board-approved annual process, normally, there should be no need for any emergent or urgent authorization being required by the banks, in the interim. However, I would like to emphasize that the new policy does not preclude the possibility of any urgent proposals for opening bank branches being considered by the RBI even outside the annual plan, especially in the rural / under-banked areas, anytime during the year. This flexibility has been clearly articulated in our policy guidelines as contained in the Master Circular of July 2007 but somehow, it seems to have got overlooked. There also seems to be a feeling among some banks that under the new authorization policy, the process adopted is more cumbersome and, as a result, there have been delays in issuing authorizations. Since the banks are required to approach the RBI only after obtaining the approval of their respective Boards for their annual branch expansion plan, it is possible that the preparatory time required for filing their annual plan with the RBI might be a little longer. The processing time at the end of the RBI, however, has been generally in the range of one to two months which I consider to be reasonable, given the element of consultation with the banks built into the process. However, the actual number of authorizations issued by the RBI under the new policy has been much higher than before. For instance, as against the a total of 881, 1125 and 1259 authorizations given by the RBI under the old policy regime during 2003-04, 2004-05 and 2005-06, respectively, the number of authorizations issued under the new policy during 2006-07 was 2028. Thus, as against the general perception that the new policy has been more restrictive in granting authorizations, the fact is that there has been a sharp increase of about 61 per cent in the total number of authorizations granted last year.

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Overview of the nfet/rtgs


National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporate can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme. Individuals, firms or corporate maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals who do not have a bank account (walk-in customers) can also deposit cash at the NEFTenabled branches with instructions to transfer funds using NEFT. However, such cash remittances will be restricted to a maximum of Rs.2,00,000/- per transaction. Such customers have to furnish full details including complete address, telephone number, etc. NEFT, thus, facilitates originators or remitters to initiate funds transfer transactions even without having a bank account. The NEFT system also facilitates one-way cross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme. A remitter can transfer funds from any of the NEFT-enabled branches in to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees. There is no limit either minimum or maximum on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.2,00,000/- for cash-based remittances and remittances to Nepal. Presently, NEFT operates in hourly batches - there are eleven settlements from 9 am to 4pm on week days (Monday through Friday) and five settlements from 9 am to 1 pm on Saturdays.

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OPERATING SYSTEM OF NEFT:Step-1 : An individual / firm / corporate intending to originate transfer of funds through NEFT has to fill an application form providing details of the beneficiary (like name of the beneficiary, name of the bank branch where the beneficiary has an account, IFSC of the beneficiary bank branch, account type and account number) and the amount to be remitted. The application form will be available at the originating bank branch. The remitter authorizes his/her bank branch to debit his account and remit the specified amount to the beneficiary. Customers enjoying net banking facility offered by their bankers can also initiate the funds transfer request online. Some banks offer the NEFT facility even through the ATMs. Walk-in customers will, however, have to give their contact details (complete address and telephone number, etc.) to the branch. This will help the branch to refund the money to the customer in case credit could not be afforded to the beneficiarys bank account or the transaction is rejected / returned for any reason. Step-2 : The originating bank branch prepares a message and sends the message to its pooling centre (also called the NEFT Service Centre). Step-3 : The pooling centre forwards the message to the NEFT Clearing Centre (operated by National Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next available batch. Step-4 : The Clearing Centre sorts the funds transfer transactions destination bank-wise and prepares accounting entries to receive funds from the originating banks (debit) and give the funds to the destination banks(credit). Thereafter, bank-wise remittance messages are forwarded to the destination banks through their pooling centre (NEFT Service Centre). Step-5 : The destination banks receive the inward remittance messages from the Clearing Centre and pass on the credit to the beneficiary customers accounts.

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IFSC: IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. This is an 11 digit code with the first 4 alpha characters representing the bank, and the last 6 characters representing the branch. The 5th character is 0 (zero). IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.

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RTGS: The acronym RTGS stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a real time and on gross basis. This is the fastest possible money transfer system through the banking channel. Settlement in real time means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. Gross settlement means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ` 2,00,000/-. There is no upper ceiling for RTGS transactions. Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds transfer message. The RTGS service window for customer's transactions is available from 9.00am to 4.30 pm on week days and from 9.00am to 1.30 pm on Saturdays for settlement at the RBI end. However, the timings that the banks follow may vary depending on the customer timings of the bank branches.

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DIFFERENCE BETWEEN NEFT & RTGS: The fundamental difference between RTGS and NEFT, is that while RTGS is based on gross settlement, NEFT is based on net-settlement. Gross settlement is where a transaction is completed on a one-to-one basis without bunching with other transactions. As for a Deferred Net Basis (DNS), or net-settlement, this is where transactions are completed in batches at specific times. Here, all transfers will be held up until a specific time. RTGS transactions are processed throughout the working hours of the system. RTGS transactions involve large amounts of cash basically only funds above Rs 2,00,000 may be transferred using this system. For NEFT, any amount below Rs 2,00,000 may be transferred, and this system is generally for smaller value transactions involving smaller amounts of money. RTGS processes in real time (push transfer), while NEFT processes in cycles during the given working day. These cause a NEFT transaction that is initiated later than the last cycle to be completed the next day.

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Determination Of Project
After exploring various positive and negative aspects of different topics regarding the project, I came to a consensus to make a project on NEFT/RTGS in place of BC/DDs. We have carried out research on various aspects of NEFT/RTGS like the preference of business parties, customers. We have also conducted a research of potential customers i.e. those people who are not availing the services of NEFT/RTGS as well as the customers using this facility regularly, this lead to identify the reasons why people do prefer NEFT/RTGS as an advanced technology. Thus emerged the objective of our project:- A project report on study of consumer awareness of NEFT/RTGS in place of traditional products like BC/DD in branches.

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OBJECTIVE
The objective of our project has three aspects, which are as mentioned below.

The primary objective of the study is to identify new products against the old products in front of customers, business organizations, business parties etc. We are also identifying the consumer preference about the products.
Following are the factors which we have used to know preferences of the consumers: Extra facilities

The study focuses on the activities of using the products which is helpful to transferring the money from one place to another.

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Research Methodology

Marketing Research is the systematic design collection, analysis and reporting of the data and findings relevant to a specific marketing facing the company.

Marketing research has proved an essential tool to meet all the needs of marketing management. These needs include information regarding products, prices, market conditions of demand and supply, consumer needs and desires, selling methods, physical flow of goods, competitive decisions, external marketing environment and other factors of marketing management.

Marketing research process involves the identification of problems, research design, collection of the data, and interpretation of data for reporting the conclusions to solve specific problems. Each research process must be carefully planned, effectively coordinated and integrated.

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Marketing research Process


1. Defining the research objective 2. Research design 3. Determining sources of information and data 4. Sample design 5. Analysis and interpretation of data

1. Defining the research objective Determining the research objectives is the most important step in marketing research. It is essential to frame the ultimate and operational objectives of the marketing research which is decided considering costs and techniques of research. The more important objectives are those that describe the required data for the decision needs.

We have defined its objective as to study the different products of the branch wherein we have surveyed the consumers as well as the potential consumers of the branch.

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2. Research design
A research design is a master plan or model for the conduct of formal investigation and survey. It may be exploratory, descriptive and experimental.
i) Exploratory Research design:

is the design used to conduct a general

exploration of the issue, gain some broad insights into the phenomenon, and achieve a better feel for the subject under investigation.

ii) Descriptive design:

is the design used to describe a population, event, or

phenomenon in a precise manner in which we can attach numbers to represent the extent to which something occurs or determine the degree in which two or more variables co-vary. In which design we are using questionnaire method for the consumers. H1:- Age is independent to preference of the customer. H2:- Gender is independent to preference of the respondents. H3:- Occupation is independent to preference of the customer. H4:- Age is independent to get extra facility by the respondents which would they prefer. H5:- Gender is independent get extra facility by the respondents which would they prefer. H6:- Occupation is independent to get extra facility by the respondents which would they prefer. H7:- Age is independent to ways of awareness about the transaction. H8:- Gender is independent to ways of awareness about the transaction. H9:- Occupation is independent to ways of awareness about the transaction. H10:- Satisfaction of the new products NEFT/RTGS is independent to customers preference.
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H11:- Age is independent to products. H12:- Gender is independent to products. H13:- Occupation is independent to products. H14:- Age is independent to awareness about the new product. H15:- Gender is independent to awareness about the new product. H16:- Occupation is independent to awareness about the new product. H17:- Age is independent to transaction done through NEFT/RTGS. H18:- Gender is independent to transaction done through NEFT/RTGS. H19:- Occupation is independent to transaction done through NEFT/RTGS.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

3. Determining sources of information and data

The sources of information are broadly divided into below mentioned categories. i. Secondary data ii. Primary data

i) Secondary data consists of information that already exists somewhere, having been collected for some other purposes. They are already brought before the public in the form of published or unpublished information. Important sources of secondary information are commercial data sources, online database and internet data sources. The secondary sources used by us are internal rates of banks and internet.

ii) Primary data consists of information collected for specific purpose. It may be defined as those data that have been observed or recorded by the researchers for the first time. Primary data collection calls for a number of decisions on research approach, contact methods and research instruments. We are collecting primary data from the consumers through the questionnaire.

ii (a) Research Approaches Survey research It is the approach best suited for the collection of descriptive information. A research that wants to know about peoples knowledge,

attitudes, preferences, or buying behavior can often find out the primary data by asking relevant questions to the concerned individuals directly.

For the purpose of this project we will use survey research approach.
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

ii(b) Contact method It includes contacting people related to the area of study through mails, telephone or personal interview. The contact method used by us are personal interviewing of respondents. ii(c) Research Instruments In collecting primary data we have used questionnaire as a research tool. The questionnaire can be prepared by the use of existing knowledge and secondary data. The two forms of questionnaire are close-ended and open-ended questionnaire, from which we have used a combination of both close-ended as well as an open-ended questionnaire. In which 1st 7 questions are of demographic type question than we consider the awareness types of questions which shows that awareness about the product in consumer its from 8 to 11 than we consider the satisfaction of the consumer than preference of the consumer than extra facility to get acknowledgement of their transaction.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

4. Sample Design

We conducted a survey for the project. Population survey gives reliable and authentic information but due to time and cost constraints it was not feasible to undertake a population survey so the group has adopted a sampling method. We have surveyed 50 consumers of BANK OF BARODA (NEW CLOTH MARKET) branch.

Sample: A sample is a subset of the population.

The method of surveying the samples is known as sampling method. Non-probability sampling techniques a. Convenience Sampling Convenience sampling attempts to obtain a sample of convenient elements. A selection of sampling units is left to primarily the researcher. Often respondents are selected because they happen to be in the right place at the right time. We have used convenience-sampling technique for the consumers.

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5. Analysis and interpretation of data

After the collection of data, the task of research process is the analysis and interpretation of the data. The questionnaire is processed to make sure that all the questions answered are recorded. The resulting data should be logical and consistent. After editing, the data is tabulated and analyzed. Data analysis includes the statistical tests, which may involve coding, tabulation and interpretation.

We have analyzed each question of our questionnaire by using following methods. GRAPHICAL ANALYSIS TEST OF INDEPENDENCE CHI SQUARE

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Service marketing ps
Banks are essentially service providers, their offering the different types of products which is helpful to transferring money from one place to another. Their offering is characterized by various characteristics of service such as perishability, intangibility, not resulting into an ownership etc. In the market which is teeming with more and more service providers of this type of products, the marketing of service takes an important role in growth and sustenance of the organization. Each unit has a different way of positioning and also a different way of promoting its service and designing their offering. To study different ways in which all the units carry out these practices is an important aspect of the analysis of an industry. This will give us an insight into the various practices applied by the professionals of the industry people. The following 7 Ps of marketing mix were studied by us. Product Place Promotion Price People Physical Evidence Process

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY PRODUCT:

Service providers need to be attentive to all aspects of the service performance that have the potential to create value for consumers. Looking at the banking industry we observe that the product is NEFT/RTGS which is made available to the consumers. Services product are intangible in nature. Hence for the customers, business parties, organizations should not only come out with an interesting service but also consistently make innovations and changes in the service as and when need arise. The important dimensions to be given due consideration in banking products telegraphic clearance etc. in accordance with providing old products services like bank clearance, demand drafts, mail clearance,

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PROMOTION:
Promotion is an important factor for any firm that wants to survive and outlive the competition profitably. When there are many firms offering almost similar product, promotion assumes all the more responsibility of creating value for ones offering in the minds of the consumers. The following are the Components of a promotion mix: Advertising Publicity Word of mouth

In this study we will focus on which of the above mentioned components do the banking sector use as a part of their promotional activities. Majority of the banking sector is advertised generally by word of mouth. Some of the banking sector provides software to the customer who have a higher credit limit. They are doing their transactions directly through their office place.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

PRICE:
This component addresses management of all the outlays incurred by consumers in obtaining benefits from the service product. Consequently, services marketing strategy is not limited to the traditional pricing tasks of determining the selling price to consumers, setting margins for any intermediaries, and establishing credit terms. Marketers must understand and, where feasible, seek to minimize other outlays that consumers are likely to incur in purchasing and using a service. These outlays may include additional monetary costs, time expenditures, unwanted mental and physical effort and exposure to negative sensory experiences. As the banking industry falls under monopolistic market situation where is charged as per product differentiation. Here they charge according to the facilities provided to them e.g. some may charge more due to extra facilities being provided. The prices charged by all the banks as per transactions are occurred on the basis of amount transferred from one place to another. We done the project with BANK OF BARODA their charges for NEFT/RTGS as per the transactions occurred. No upper ceiling limit is available. As against in traditional product like DD, MT, TT the charges are fixed. Up to 10000rs. The charges will be 56rs. Per transaction(through cheques) or maximum limit up to 16,645rs. Above 10,000rs. Transactions the charges will be increase as per 1,000rs. - 4.5rs. in traditional products. If you are making DD (through cash) the charges will be taking by bank is 1.5times rather than the normal charges. In cash transaction of DD the PAN card must you have n its minimum charges is 90rs.

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PLACE:
Delivering product elements to consumers involves decisions on the place and time of delivery, as well as on the methods and channels used. Delivery may involve physical or electronic distribution channels or both, depending on the nature of the service being provided. In banking sector the delivery of product is through computers, bank accounts or in physical forms. Place is an important part of providing service because if banking sector are located in rural area or an unorganized area they wont make huge profits as people there are illiterate or have no knowledge of banking transactions. They directly sell their product to consumers. Location sometimes is not decided by the branch owner it may also be decided by the apex body. The location advantages simplify the task of implementing the marketing principles. We need to gravitate our attention on the providers of the services. To be more specific in the service generating organizations where we dont find direct distribution of services due mainly to intangibility, it is pertinent that the front-line-staff who bear the responsibility of offering the services to the ultimate users, dont create a gap between the services promised and services offered.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

PEOPLE:
All the human actors participating in the delivery of a service provide cues to the consumers regarding the nature of the service itself. How these people are dressed, their personal appearance and their attitudes and behaviors all influence the consumers perceptions of the service. The service provider or contact person can be very important. In fact, for some services, such as account opening service, money transfer service, cheques clearing service etc. the provider is the service. In other cases the contact person may play what appears to be a relatively small part in service delivery.

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PHYSICAL EVIDENCE:
The physical evidence of service includes all the tangible representations of the service such as receipts, vouchers, bills, cheque, report formats, signage and equipment. for example, the retail bank branch facility.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

PROCESS:
The actual delivery steps that the consumers experiences, or the operational flow of the service, also give consumers evidence on which to judge the service. Some services are very complex, requiring the consumers to follow a complicated and extensive series of actions to complete the process. Creating and delivering product elements to consumers require the design and implementation of effective processes. If the process of providing service is not proper it may not be fruitful to the banking industry. For instance the computers provided to the consumers are inefficient and price as compared to service is high the consumer will prefer other banks.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

ANALYSIS Introduction
We have analyzed the questionnaires by two methods i.e. Graphical Analysis o Pie Charts Chi2 test Statistical Analysis o

We have taken 95% level of confidence as the data cannot be completely accurate. The rating measurements are assigned to various questions as per rating measurement mentioned in our questionnaire, which is attached in annexure.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

GRAPHICAL ANALYSIS
AGE OF THE RESPONDENTS Age 10-20 20-30 >30 total

1 15 34 50

Age Of The Respondants


10-20 20-30 2% 30% 30-40

68%

The above given breakup of the sample shows the percentage of respondents from each age. We have also included potential as well as non-potential consumers of the banking industry in our survey so that we can get the overall insight of the consumer and the reasons that might be hindering to consumers to go to the bank. Also we have asked the consumers the suggestions for developing the banking industry.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

GENDER OF THE RESPONDENTS

Gender male female total

45 5 50

Gender Of The Respondents


male female

10%

90%

The above given breakup of the sample shows the percentage of respondents from each gender. We have also included Female consumers of the banking industry in our survey. Also we are doing observation method when they gave their response.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

FAMILY INCOME OF THE RESPONDENTS INCOME < 10000 10000-20000 20000-30000 >30000 total

2 2 2 44 50

Income Of The Respondant


< 10000 10000-20000 20000-30000 4% 4% 4% >30000

88%

In above chart it shows that maximum persons income is above 30,000. It includes all potential & non-potential customers. It also shows that the person who is businessman whose only income is greater than 30,000rs.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY OCCUPATION OF THE RESPONDENTS occupation businessman organization students others total

35 1 10 4 50

Occupation Of The Respondant


others 8% students 20% businessman 70%

organization 2%

In above chart it shows that 70% of the customers are businessman & rest are others. In occupation we also include the students so we knew about the awareness of the student in the new products of RBI because students also going in bank for banking transaction.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY HOW FREQUENTLY RESPONDENTS VISIT IN THE BANK? FREQUENTLY VISIT DAILY ONCE IN AWEEK TWICE OR MORE IN A WEEK OTHERS TOTAL 23 13 11 3 50

Respondant Frequently Visit In The Bank


DAILY ONCE IN AWEEK TWICE OR MORE IN A WEEK OTHERS

6% 22%

46%

26%

It was important to know that if the consumers do not use the services where do they get to know of its existence. So we asked them and the whopping majority of 23 out of total of 50 told that they going daily in BANK for regular transaction.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

RESPONDENTS TRANSACTION IN BANK TRANSACTION TYPES DD BC TT MT NEFT RTGS OTHERS TOTAL

3 0 0 0 14 21 12 50

Bank Transaction Types


0% 6% 24% 28% 0% 0% DD BC TT MT NEFT RTGS 42% OTHERS

Above chart shows that businessman maximum using new products of fund transferring. 21 people out of 50 using RTGS transaction in routine life for fund transferring from 1 bank to another bank & 14 people out of 50 using NEFT product for fund transferring. In others people using cash withdrawal or cash depositing transactions.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY RESPONDENTS AWARENESS ABOUT THE PRODUCT AWARENESS ABOUT THE PRODUCT YES NO TOTAL

42 8 50

Awareness Of the Respondant About The Product


YES NO

16%

84%

It shows that 42 people out of 50 are aware about the new product of RBI rest are not aware who is only students & include some professionals because they are not using regular fund transferring from 1 bank to another. It is more useful for businessman whose regular turnover is high.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

HOW RESPONDENTS ARE AWARE ABOUT THE PRODUCT? AWARENESS THROUGH FRIENDS BANK STAFF BUSINESS PARTIES OTHERS NONE TOTAL

1 35 4 2 8 50

Ways Of Awareness About The Product


FRIENDS BANK STAFF BUSINESS PARTIES 2% 4% 16% OTHERS NONE

8%
70%

It was important to know that if the consumers do not use the services where do they get to know of its existence. So we asked them and the whopping majority of 35 out of total of 50 told that they got to know of the new product of bank from bank staff. This brings out one fact very glaringly, that the amount of peer pressure is very high among the consumers. Awareness created by friends & business parties is comparatively lesser; reason being that the awareness about the new product of bank advertisements come mostly only at time of its commencement, for promoting the transaction. Otherwise promotion of transaction is usually done through the word-of-mouth.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY HOWMANY TIMES TRANSACTIONS HAVE BEEN DONE THROUGH NEFT/RTGS? TRANSACTION DONE EVERYDAY ONCE IN A WEEK TWICE IN A WEEK MORE THAN 3 TRANSACTION OTHERS(NONE) TOTAL

22 8 1 6 13 50

NEFT/RTGS Transaction
EVERYDAY ONCE IN A WEEK TWICE IN A WEEK MORE THAN 3 TRANSACTION OTHERS(NONE)

26% 44% 12% 16%

2%

It shows that 22 people out of 50 people using every day the new product of RBI. In against the professionals & students must not use these types of products. They simply use the Demand Draft for their education fees transfer & other purposes.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

RESPONDENTS STISFACTION ABOUT THE PRODUCT SATISFACTION YES NO TOTAL

37 13 50

Respondent Satisfaction About The Product


YES NO

26%

74%

Above chart shows that 74% customers are satisfied with the product in mostly them are businessman & rests are students who are not aware about the product so their responses are none so we cannot said that they are not satisfied but their answer was neutral.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

WHY RESPONDENTS PREFER NEFT/RTGS? PREFERANCE EASY TRANSACTION LESS COSTLY USING LESS TIMING OTHERS(NONE) TOAL

8 23 7 12 50

Preferance Of Respondents
EASY TRANSACTION LESS COSTLY USING LESS TIMING OTHERS(NONE)

24%

16%

14% 46%

Above chart shows that more customers doing NEFT/RTGS because of less costing of the new product in against of traditional products like DD, MT,TT, BC etc. New products are using less timing & also it is an easy transaction for consumers. 24% people do not prefer RTGS/NEFT transactions.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY WHAT KIND OF EXTRA FACILITIES WOULD RESPONDENTS PREFER TO GET ACKMOWLEDGEMENT YOUR TRANSACTION? EXTRA FACILITY ONLINE INFORMATION TELE CALLING MOBILE BANKING OTHERS TOTAL

10 21 19 0 50

Extra Facility
ONLINE INFORMATION TELE CALLING 0% 38% 20% MOBILE BANKING OTHERS

42%

Above chart shows that 21 people out of 50 people prefer tele calling for the extra facility & rests are prefer other facility to get acknowledgement of respondent transaction.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

CHI2 ANALYSIS OF VARIANCE


If a sample of size n is taken from a population having a normal distribution, then there is a well-known result (see distribution of the sample variance) which allows a test to be made of whether the variance of the population has a pre-determined value. For example, a manufacturing process might have been in stable condition for a long period, allowing a value for the variance to be determined essentially without error. Suppose that a variant of the process is being tested, giving rise to a small sample of product items whose variation is to be tested. The test statistic T in this instance could be set to be the sum of squares about the sample mean, divided by the nominal value for the variance (i.e. the value to be tested as holding). Then T has a chi-squared distribution with n 1 degrees of freedom. For example if the sample size is 21, the acceptance region for T for a significance level of 5% is the interval 9.59 to 34.17. There are basically two types of random variables and they yield two types of data: numerical and categorical. A chi square (X2) statistic is used to investigate whether distributions of categorical variables differ from one another. Basically categorical variable yield data in the categories and numerical variables yield data in numerical form. We are doing chi2 test of independence of variance. It is a test of checking effect of change in one variable on another variable. The formula of chi2 test of independence is below with various steps of testing the hypothesis value of chi2.

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STEP 1:- For a contingency table that has r rows and c columns, the chi square test can be thought of as a test of independence. In a test of independence the null and alternative hypotheses are: STEP 2:- Ho: The two categorical variables are independent. STEP - 3:- Ha: The two categorical variables are related. STEP 4:- We can use the equation:Chi Square(2) = (fo - fe)2 / fe

Here, fo denotes the frequency of the observed data fe is the frequency of the expected values. STEP 5:- Find the df. (N-1) STEP 6:- Find the table value (consult the Chi Square Table.) STEP -7:- If your chi-square value is equal to or greater than the table value, reject the null hypothesis: differences in your data are not due to chance alone.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H1 - STEP 1:- We are taking 2 variables for hypothesis from the given objectives. 1) Preference of consumer 2) Age of the respondents STEP 2:- H0: preference of the new product of NEFT/RTGS is independent on consumers age. STEP 3:- H1: preference of the new product of NEFT/RTGS isnt independent on consumers age. STEP 4:- We are using chi2 for the given objectives with the help of SPSS software. 2 = (fo - fe)2 / fe

$Pref EASY TRANSACTION Count AGE 10-20 20-30 > 30 0 1 12 LESS COSTLY Count 0 2 25 USING LESS TIMING Count 0 2 12

Pearson Chi-Square Tests $Preferance AGE Chi-square df Sig. 1.224 3 .747


a

Conclusion:- Preference of the new product NEFT/RTGS is totally independent on age. Here p- value is 0.747 which is greater than.05 the null hypothesis will be accepted.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H2 - Now we take another objective for creating hypothesis. Again there are two objectives. 1) Age of the respondents 2) Extra facilities preference STEP 1:- H0: Extra facilities using by respondents to get acknowledgement of their transaction is Independent on age. STEP 2:- H1: Extra facilities using by respondents isnt Independent on age. STEP 3:- We are using chi2 for the given objectives with the help of SPSS software.
$Extra Facility ONLINE INFORMATION Count AGE 10-20 20-30 > 30 0 5 5 TELE CALLING Count 1 5 15 MOBILE BANKING Count 0 5 15

Pearson Chi-Square Tests $Extra Facility AGE Chi-square Df Sig. .449 5.775 6
a,b

Conclusion:- Extra facilities using by respondents to get acknowledgement of their transaction is totally independent on age. Here p- value is 0.449 which is greater than0.05 the null hypothesis will be accepted.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H3: Age is independent with products

$product types CASH DD Count AGE 10-20 20-30 > 30 0 3 2 MT Count 0 0 0 TT Count 0 0 0 BC Count 0 2 0 NEFT Count 0 2 23 RTGS Count 0 2 32 TRANSACTION Count 1 14 2

Pearson Chi-Square Tests $product types AGE Chi-square Df Sig. .000 91.418 10
*,a,b

Conclusion:- Here in that case our null hypothesis is rejected it means age isnt independent with products.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H4 Gender is independent to the products.

$product types CASH DD Count GENDER MALE FEMALE 5 0 MT Count 0 0 TT Count 0 0 BC Count 2 0 NEFT Count 23 2 RTGS Count 33 1 TRANSACTION Count 14 3

Pearson Chi-Square Tests $product types GENDER Chi-square Df Sig. .125 8.627 5
a,b

Conclusion:- Here in that case our null hypothesis is accepted because calculated value is more than the tabulated value. So gender is independent to products.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H5:- Occupation is an independent to products.

$producttypes CASH DD Count OCCUPATION BUSINESSMAN STUDENTS ORGANIZATION PROFESSIONAL 2 1 0 2 MT Count 0 0 0 0 TT Count 0 0 0 0 BC Count 0 0 0 2 NEFT Count 24 1 0 0 RTGS Count 33 1 0 0 TRANSACTION Count 2 10 1 4

Pearson Chi-Square Tests $product types OCCUPATION Chi-square df Sig. .000 126.918 15
*,a,b

Conclusion:- In that case our null hypothesis is rejected because table value is more than the calculated value. So occupation is not independent to the products.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H6:- Age is independent to awareness of respondents about the RBIs products.

AWARENESS YES Count AGE 10-20 20-30 > 30 0 8 34 NO Count 1 7 0

Pearson Chi-Square Tests AWARENESS AGE Chi-square df Sig. .000 22.222 2


*,a,b

Conclusion:- Here the chi square table value is more than the calculated value so our null hypothesis is rejected it means age is dependent to awareness about the new product.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H7:- Gender is independent to awareness about the new products.

AWARENESS YES Count GENDER MALE FEMALE 37 5 NO Count 8 0

Pearson Chi-Square Tests AWARENESS GENDER Chi-square df Sig. .304 1.058 1


a,b

Conclusion:- Here null hypothesis is accepted because P value is 0.304 which is greater than the 0.05. It means gender is independent to awareness about the products.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H8:- Occupation is independent to awareness about the new products.

AWARENESS YES Count OCCUPATION BUSINESSMAN STUDENTS ORGANIZATION PROFESSIONAL 35 3 1 3 NO Count 0 7 0 1

Pearson Chi-Square Tests AWARENESS OCCUPATION Chi-square df Sig. .000 28.795 3


*,a,b

Conclusion:- In this case our null hypothesis is rejected because P- value is 0.000 which is less than the 0.05. It means occupation is totally dependent to awareness about the RBIs new product.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H9:- NEFT/RTGS transaction is totally independent to age.

WAYSOFAWARENESS THROUGH THROUGH FRIENDS Count AGE 10-20 20-30 > 30 0 2 0 THROUGH BANK STAFF Count 0 2 32 BUSINESS PARTIES Count 0 2 2 THROUGH PARENTS Count 0 2 0 NONE Count 1 7 0

Pearson Chi-Square Tests WAYS OF AWARENESS AGE Chi-square df Sig. .000 39.487 8
*,a,b

Conclusion:- In this case our null hypothesis is rejected because our P-value is 0.000 which is less than 0.05 so that age is totally dependent on ways of awareness about the products.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H10:- Gender is independent to ways of awareness.

WAYS OF AWARENESS THROUGH THROUGH FRIENDS Count GENDER MALE FEMALE 1 1 THROUGH BANK STAFF Count 32 2 BUSINESS PARTIES Count 4 0 THROUGH PARENTS Count 0 2 NONE Count 8 0

Pearson Chi-Square Tests WAYS OF AWARENESS GENDER Chi-square df Sig. .000 23.529 4
*,a,b

Conclusion:- Here in this case the null hypothesis is rejected because our p value is 0.000 which is less than the 0.05. It means gender is totally dependent on ways of awareness.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H11:- Occupation is independent to ways of awareness

WAYSOFAWARENESS THROUGH THROUGH FRIENDS Count OCCUPATION BUSINESSMAN STUDENTS ORGANIZATION PROFESSIONAL 0 0 1 1 THROUGH BANK STAFF Count 32 0 0 2 BUSINESS PARTIES Count 3 1 0 0 THROUGH PARENTS Count 0 2 0 0 NONE Count 0 7 0 1

Pearson Chi-Square Tests WAYS OF AWARENESS OCCUPATION Chi-square df Sig. .000 72.398 12
*,a,b

Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05 so that our null hypothesis is rejected. It means occupation is totally dependent on ways of awareness.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H12:- Transaction of NEFT/RTGS is independent to age.

TRANSACTION DONE(on week basis) MORE THAN 3 ONCE IN A EVERYDAY Count AGE 10-20 20-30 > 30 0 1 21 WEEK Count 0 2 6 TWICE IN A WEEK Count 0 0 1 TRANSACTION DURING WEEK Count 0 0 6 NONE Count 1 12 0

Pearson Chi-Square Tests TRANSACTION DONE AGE Chi-square Df Sig. .000 38.978 8
*,a,b

Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05 so that our null hypothesis is rejected. It means age is totally dependent on transaction of NEFT/RTGS.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H13:- Transaction of NEFT/RTGS is independent to gender.

GENDER MALE Count TRANSACTION DONE (weekly basis) EVERYDAY ONCE IN A WEEK TWICE IN A WEEK MORE THAN 3 TRANSACTION DURING WEEK NONE 10 3 21 8 1 5 FEMALE Count 1 0 0 1

Pearson Chi-Square Tests GENDER TRANSACTIONDONE Chi-square Df Sig. .343 4.494 4


a,b

Conclusion:- Here null hypothesis is accepted because P value is 0.343 which is greater than the 0.05. It means transaction of NEFT/RTGS is independent to gender about the products.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H14:- Transaction of NEFT/RTGS is independent to occupation.

TRANSACTION DONE(weekly basis) MORE THAN 3 ONCE IN A EVERYDAY Count OCCUPATION BUSINESSMAN STUDENTS ORGANIZATION PROFESSIONAL 22 0 0 0 WEEK Count 6 1 0 1 TWICE IN A WEEK Count 1 0 0 0 TRANSACTION DURING WEEK Count 6 0 0 0 NONE Count 0 9 1 3

Pearson Chi-Square Tests TRANSACTION DONE OCCUPATION Chi-square df Sig. .000 43.698 12
*,a,b

Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05 so that our null hypothesis is rejected. It means occupation is totally dependent on transaction of NEFT/RTGS.

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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY

H15:- Occupation is independent to satisfaction of respondents.

SATISFACTION YES Count OCCUPATION BUSINESSMAN STUDENTS ORGANIZATION PROFESSIONAL 35 1 0 1 NO Count 0 9 1 3

Pearson Chi-Square Tests SATISFACTION OCCUPATION Chi-square df Sig. .000 41.424 3


*,a,b

Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05 so that our null hypothesis is rejected. It means occupation is totally dependent on satisfaction of respondents.

H16:- Gender of respondent is totally independent to preference of consumers.

$Preference

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EASY TRANSACTION Count GENDER MALE FEMALE 13 0

LESS COSTLY Count 25 2

USING LESS TIMING Count 14 0

Pearson Chi-Square Tests $Preference GENDER Chi-square df Sig. .360 3.215 3


a,b

Results are based on nonempty rows and columns in each innermost subtable. a. More than 20% of cells in this subtable have expected cell counts less than 5. Chi-square results may be invalid. b. The minimum expected cell count in this subtable is less than one. Chi-square results may be invalid.

Conclusion:- Here null hypothesis is accepted because P value is 0.360 which is greater than the 0.05. It means preference is independent to gender about the products.

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H17:- Occupation is independent to customers preferance.

$Preference EASY TRANSACTION Count OCCUPATION BUSINESSMAN STUDENTS ORGANIZATION PROFESSIONAL 12 0 0 1 LESS COSTLY Count 26 1 0 0 USING LESS TIMING Count 13 0 0 1

Pearson Chi-Square Tests $Preference OCCUPATION Chi-square df Sig. .256 7.759 6


a,b

Conclusion:- Here null hypothesis is accepted because P value is 0.256 which is greater than the 0.05. It means preference of respondent is independent to gender about the products.

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H18:- Gender is independent to get extra facilities for acknowledgement by the respondents.
$Extra Facility ONLINE INFORMATION Count GENDER MALE FEMALE 8 2 TELE CALLING Count 18 3 MOBILE BANKING Count 18 2

Pearson Chi-Square Tests $Extra Facility GENDER Chi-square df Sig. 1.848 3 .604
a

Conclusion:- Here null hypothesis is accepted because P value is 0.604 which is greater than the 0.05. It means gender is totally independent is to get extra facility for acknowledgement by respondents.

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H19:- Occupation is independent to get extra facilities for acknowledgement by the respondents.
$Extra Facility ONLINE IN FORMATION Count OCCUPATION BUSINESSMAN STUDENTS ORGANIZATION PROFESSIONAL 6 2 1 1 TELE CALLING Count 15 5 1 0 MOBILE BANKING Count 15 2 0 3

Pearson Chi-Square Tests $Extra Facility OCCUPATION Chi-square df Sig. .095 14.859 9
a,b

Conclusion:- Here null hypothesis is accepted because P value is 0.095 which is greater than the 0.05. It means occupation is totally independent is to get extra facility for acknowledgement by respondents.

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To Summarize
Firstly we would like to give our conclusion on the consumers that on the basis of the hypothesis is relate with customer preference about the new products with the compare of the respondents age, occupation & gender also include satisfaction of the respondents about the products their awareness about the products etc. Table of hypothesis:Particulars Related with Age Products Gender Products Occupation Products Age Awareness Gender Awareness Occupation Awareness Age Transaction done times Gender Transaction done times Occupation Transaction done times Age Way of awareness Gender Way of awareness Occupation Way of awareness Age Preference Gender Preference Occupation Preference Age Extra facility Gender Extra facility Occupation Extra facility Satisfaction Preference

P value 0.000 0.125 0.000 0.000 0.304 0.000 0.000 0.343 0.000 0.000 0.000 0.000 0.747 0.360 0.256 0.449 0.604 0.095 0.000

Accepted/Rejected Rejected Accepted Rejected Rejected Accepted Rejected Rejected Accepted Rejected Rejected Rejected Rejected Accepted Accepted Accepted Accepted Accepted Accepted Rejected

On the basis of above table of hypothesis age, occupation & gender of the respondents is affected the preference of the customer & extra facility is also affected to the customers age, occupation & gender. So that our hypothesis is accepted in above cases in others it is rejected.

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Findings:
Consumers Usually the businessman & organizations know about the RBIs new product of NEFT/RTGS. Consumers usually prefer this product because it takes less time to transfer from one account to another account in particular branch. Another reason is that it is less costly as compare to the traditional product & the transaction is too easy. As per our study our non potential customer does not know about the product because of less banking transaction & awareness also responsible for that. Consumers usually doing this type of transaction for transferring the funds to another party behind that the main reason is trading of goods & services. Students which are our non potential customers as well as professional also are not using these products for fees transferring & other activities. They are using traditional products like BC/DD etc. In NEFT/RTGS the transaction cost is low as compare to traditional products so thats why customers choose this types of products & also it is taking less timing & easy to transfer. Our non potential customer not choosing these types of transaction because of cheque book because in NEFT/RTGS transaction the basic requirement of customer is cheque book. In student saving account sometime they have not take cheque book from bank & also they are access their account through 0rs. Balance. So they are not aware as well as they are not doing in such type of transaction.

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Bank of Baroda Bank of Baroda takes charge in traditional products like BC/DD is minimum cost 56rs. Up to 10000rs. After that it is 4.5rs. Per1000 amount & maximum is 16,645rs. In compare to NEFT/RTGS the minimum cost is 6 to 7rs. as per the transaction which is decided by the RBI & maximum cost is 61rs. Above 200000rs. Transaction its cost is only 28rs. Its only applicable till 13/7/2012. Now RBI applies new rates for the transactions. This cost is deferent from bank to bank because the overall costing behind the one transaction is different from bank to bank. In Bank of Baroda the costing behind 1 DD/BC transaction is 80rs. In compare to NEFT/RTGS its only 30rs. Behind the 1 transaction. It creates 30rs. Error/loss for bank. So thats why RBI launching new products which is beneficial for everybody. In bank there are 2 categories of transaction NEFT & RTGS. NEFT transaction is done when your fund transfer amount is less than 200000rs. Above 200000rs. It is automatically converting in RTGS transaction. This criterion is decided by the RBI. In NEFT transaction the fund transferring validity is maximum 3 days in case of accesses of internet connection & clearing process otherwise its transfer immediately. Its using IFSC codes for different branch which have 11 character codes which is useful to identify the branch & bank.

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If you going through traditional products through cash transaction its too costly transaction its amount is 90rs. Per transaction because its cost is 1.5times which is payable by customers to bank. In traditional product transaction, PAN card must require.

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SUGGESTIONS
Bank provides all facilities related to NEFT/RTGS so use it maximum for fund transferring. Any bank branches are available in any state in any city because RBI is a nationalized bank & their products are also nationalized so that the transaction of NEFT/RTGS is done at any place. The procedure of transaction is simple, it requires one bank account either it is saving or it is current account & one cheque book thats it. one NEFT/RTGS form which requires both parties name & address with phone number or email-id with the amount which will transfer from 1 place to another & also a balance available in bank account & also requires a senders PAN card number. I suggest the bank reduce the traditional product transaction rate for students who are using DD/BCs transactions. I also suggest the bank that aware the customer about the new product of the RBI through give proper guidance. Prepare 1 extra team for helping the customer who provides whole knowledge about the transaction with the help of cost effectiveness.

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Bibliography
Bibliography Banking industry analysis. (2011, February 3). Retrieved July 2012, from www.b1dcity.com: http://www.b1dcity.com Wikipedia RTGS . (n.d.). Retrieved 7 2012, from wikipedia: http://www.wikipedia.org.in RBI, C. g. (2012, 1 31). Reserve bank of India. Retrieved 7 2012, from rbi.org.in: http://www.rbi.org.in BOB, C. g. (n.d.). Bank Of Baroda. Retrieved 7 2012, from bankofbaroda: http://www.bankofbaroda.com SCHINDLER, C. &. (2011). RESEARCH METHODOLOGY. In C. &. SCHINDLER, BUSINESS RESERCH METHODS (p. 757). NEW DELHI: McGraw Hill Education Private Limited.

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QUESTIONNAIRE FOR CONSUMERS Dear respondent,


We appreciate your efforts in filling this questionnaire. We are carrying out a research as a part of our course of M.B.A at LJIET and we assure you that information shared by you will be used for academic purpose only. Mention below some important terms which is helpful to fill up this questionnaire. BC- banker cheque DD Demand drafts MT Mail transfer TT Telegraphic transfer NEFT National electronic fund transfer RTGS Real time gross settlement

1) Name: ________________________________________________

2) What is your age? Kindly mark it below. 10-20 years 30 Years and more 3) Gender: Male 4) Your family income: Below Rs 10000 Rs 10000-20000 5) Your occupation: Businessman Organization

20-30 Years

Female

Rs 20000-30000 above Rs.30000 Students Others, specify_____

6) How frequently do you visit the bank? Daily Once in a week Twice or more in a week Any other (e.g. once in a month please specify) ___________________________________________________ 7) Are you doing any kind of bank transaction? Yes No 8) If yes, than tick below mention option DD TT NEFT MT BC RTGS

others, specify_____

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9) Are you aware about NEFT/RTGS transactions? Yes No 10) How you can aware about this type of transactions? Through friends Through banks staff Through business parties Others, specify_____ 11) How many times transactions have been done through NEFT/RTGS? Everyday twice in a week Once in a week more than 3 transaction during the week Others, specify_____ 12) Are you satisfied with new transaction (NEFT/RTGS) methods over conventional transaction method (DD/BC)? Yes No 13) If no, specify the reason Transaction limit No local access No reliability of computers Others, specify_____ 14) Why you prefer NEFT/RTGS? Easy transaction Less costly Using less timing Others, specify_____

15) What kind of extra facility would you prefer to get acknowledgement of your transaction? Online information Tele calling Mobile banking Other specify,______ 16) Any suggestions for improve existing NEFT/RTGS method? ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

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