International Journal of scientific research and management (IJSRM)

||Special Issue On e-Marketing Road Ahead Of India ||Pages|| 12-18||2013||

Website: www.ijsrm.in ISSN (e): 2321-3418

E-PRODUCT AND SERVICES IN DISTRICT CENTRAL CO-OPERATIVE BANKS IN

TAMILNADU A STUDY
S. Boopathy
Ph.D. Scholar, Dept. of Cooperation, SRKV CAS, Coimbatore-641020.
E-Mail ID: svboopathy@gmail.com
Abstract
In District Central Cooperative banking is one of the service industries crucial to the growth of its emerging
economy. DCCB is important in the role it plays in capital mobilization and granting of financial facilities
that is crucial to business development and growth. As businesses always need to find ways of improving its
E-Products and Services deliveries it will be useful to understand how the adoption of E-Products and
Services can benefit the district central cooperative banking industry. The purpose of this study therefore is
to describe the status of adoption of E-Products and Services in District Central Cooperative Banks in
Tamilnadu as a means of identifying their special needs for enhancing the adoptions processes.
The specific objectives to be achieved are to:
Identify the benefits of E-Products and Services to the District Central Cooperative banking industry;
Explore reasons to adoption of E-Product and Services in District Central Cooperative banks;
Describe the challenges encountered in the adoption of E-Product and Services in District Central
Cooperative banks.
Keywords: E-Commerce, E-Product and Service in DCCBs, Benefits, Reasons, Challenges.

Introduction
Co-operative banks play imperative role in Indian financial system as cooperation has been inherent in
Indian cultural ethos to work as a socio-economic organization for the well-being of the people. The
principles and practices of Co-operative system have been guiding the people for community based
management of means of production and economic resources. The expectations from Co-operatives have
been to facilitate self-sufficiency in food grain production, creation of better employment opportunities for
rural people, workers and artisans and to provide organizational strength to the persons of the limited means
for their sustenance. In three tier structure of working, District Central Co-operative Banks (DCCBs)
operate in the middle/district level by providing finance to the primary credit societies, accepting of
deposits, granting of loans/advances, fixed deposit receipts, gold/bullion, goods and documents of title of
goods, collection of bills, cheques, safe custody of valuables, agency services and work as balancing center
for PACS.

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TABLE No. 1
A PROFILE OF TAMILNADU DISTRICT CENTRAL COOPERATIVE BANKS
(Rs. In Lakhs)
Particulars
2010-2011
2011-2012
During 2011-2012 Over 2010-2011
(As on 31st March)
Net Increase
% of Increase
No. of DCCBs
23
23
0
0.00
Total Membership
15473
16252
779
5.03
Paid Up Capital
124990
130656
5666
4.53
Total Reserve
222372
241336
18964
8.53
Total Deposit
1219773
1478559
258786
21.22
Total Borrowing
405139
556417
151278
37.34
Working Capital
1949307
2353751
404444
20.75
Investment
330286
437062
106776
32.33
Total Loan Issued
2001052
2253557
252505
12.62
Total Loan Outstanding
1609793
1974701
364908
22.67
Total Demand
1007007
1434057
427050
42.41
Total Collection
919233
1341662
422429
45.95
*Sources: National Federation Of State Cooperative Banks Ltd

From the above table revealed that the Profile of Tamilnadu district central cooperative banks. It was
clear that the business result was increased from the 2010-2011 to 2011-2012.
*Ph-D Scholar, Dept of Cooperation, SRKV CAS, Coimbatore -641029.
.

THE CONCEPT OF E-COMMERCE

E-commerce consists of buying and selling of products and services over electronic systems such as
the internet and other computer networks (Mahadavan, 2000). Modern electronic commerce typically uses
the World Wide Web at some point in the transactions lifecycle, although it can encompass a wide range of
technologies such as e-mail. A small percentage of e-commerce is conducted entirely electronically for
virtual items such as access to premium content on a website, but most e-commerce eventually involves
physical items and their transportation in at least some way. Today, it encompasses a wide range of business
activities and processes, from e banking to off shore manufacturing to e-logistics. The ever growing
dependence of modern industries on electronically enabled business processes gave impetus to the growth
and development of supporting systems, including backend systems, applications and middleware
(Chaudhury et al., 2001). Examples are broad band and Aiberoptic networks, supply chain management
software, customer management software, inventory control systems and financial accounting software. The
emergence of e-commerce also significantly lowered barriers to entry in the selling of many types of goods;
accordingly many home based proprietors are able to use the internet to sell goods. Often small sellers use
online auction sites such as e-bay or sell via large corporate websites such as amazon.com, in order to take
advantage of the exposure and set up convenience of such sites (Magutu et al, 2009).
E- COMMERCE SERVICES AND PRODUCTS
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E-commerce products and services are methods used by banking organizations to carry out their
transactions without necessarily coming into physical contact with their clients. These services include
Automatic Teller Machines (ATMs), Electronic Fund Transfer (ETF), mobile banking, online banking,
Electronic Data Interchange (EDI) and telecommunication services. Credit card is one of the few remarkable
innovations introduced successfully by banks in the last five decades, and it is currently being used
extensively in B2C electronic commerce. But it is an expensive means of payment for e-commerce and
many on-line shoppers will prefer other forms of paying for their purchase (Long 2000). So will many online retailers who have to cough up set up and transaction costs and 2-3% of every payment. Moreover credit
cards are not suitable for person-to-person trade on the Internet. In short, e-commerce has created a demand
for low cost facility for micro payments and Alexible payment (Long 2000). New ways of on-line payments
are appearing in the market, such as deduction from a pre-paid account, electronic billing services, direct
transfer out of bank accounts.
REVIEW OF LITERATURE
Lichtensten and Williamson, (2006) external pressures exerted by competitors, Customers,
business partners, the media and the larger public itself has forced banks and other financial institutions to
adopt technological innovations to improve their services. This shows that competitors, suppliers and
customers can exert direct or indirect pressures on banks to adopt e-commerce.The size of the bank appears
to be a determining variable in the adoption decision. Burke, (2002), the small size of a bank is an important
factor, as it can hinder adoption of Internet technology. Small banks usually owned by indigenous people in
most African country are less apt to adopt e-commerce because they often lack resources, a situation brought
about by such factors as operating in a strongly competitive environment, major financial constraints, lack of
professional expertise and greater sensitivity to external forces (Poon, 2008). The type of bank also
influences the adoption of electronic commerce. Maenpaa, (2006) studied the relationship between various
types of banks and adoption of the Internet. According to these researchers, these variables size, as well as
the banks types of activities have an influence on the adoption of e-commerce (Filiatrault & Huy 2006).
According to Filiatrault & Huy (2006), adapting to new technologies may require changes in the work
attitudes of employees, as well as their qualifications, their level of performance and the extent of their
knowledge of e-commerce technology. Laudon and Traver, (2008) have stated that one of the main
reasons for not adopting the Internet is lack of internal expertise. Thus, an employees knowledge of ecommerce has an effect on an organisations ability to adopt ecommerce. In keeping with this, many
organisations have attempted to delay the adoption of an innovation or new technology until they have
acquired sufficient internal expertise (Gonzalez, 2004). According to Cloete, (2002) this is the case most
developing African countries. Correspondingly, if employees already know about e-commerce, then an
organization may be more disposed to adopting it. In addition, managers with ICT knowledge also have an
effect on the adoption of e-commerce within a company (Lee, Kwon and schumann (2005), and this also
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has a positive influence on the degree of company e-commerce use. The studies are positive regarding the
amount of influence that market competition has on the uptake of e-commerce adoption within banking
sector. For instance Gonzalez, (2008) argue that the intensity of competition contributes to adoption of ecommerce by banks and financial institutions.
PurposeOfStudy
In District Central Cooperative banking is one of the service industries crucial to the growth of its emerging
economy. DCCB is important in the role it plays in capital mobilization and granting of financial facilities
that is crucial to business development and growth. As businesses always need to find ways of improving its
products and services deliveries it will be useful to understand how the adoption of E-Products can benefit
the banking industry. The purpose of this study therefore is to describe the status of adoption of E-Products
in banks in Tamilnadu as a means of identifying their special needs for enhancing the adoptions processes.
The specific Objectives to be achieved are to:
Identify the benefits of E-Products and Services to the District Central Cooperative banking industry;
Explore reasons to adoption of E-Product and Services in District Central Cooperative banks;
Describe the challenges encountered in the adoption of E-Product and Services in District Central
Cooperative banks.
ResearchQuestions
The research questions to be addressed by this study will be:
What are the benefits that may be derived by adopting E-Product and Services in District Central
Cooperative banks
What are the reasons to adoption of E-Product and Services in District Central Cooperative banks,
What challenges do District Central Cooperative banks face in adopting E-Product and Services
Data Collection
The study is based on secondary data. The data has been collected from the following sources: 1. IBABulletins annual issues and monthly issues, 2. District Wise Central Cooperative Banks 2011-2012, National
Federation of State Cooperative Bank Ltd, 3. Reserve Bank of India monthly bulletins and annual reports.
E-Product And Services In Banking Sector :- a. Bill Payment Service, b. Querying the Account Balance,
c. Applying for/Claiming Insurance, d. Shopping, e. Credit Cards, f. Smart Cards, g. Internet Banking, h.
Fund Transfers, i. Credit Card Customers, j. Investment Through Internet Banking, k. Automated Teller
Machines, l. Debit Cards, m. Electronic Funds Transfer System, n. Mobile Banking, o.Telephone Banking
Benefits Of E-Product And Service In Dccbs

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Time Savings: Online Banking, Undoubtely, saves time by allowing

direct transaction fromoffice, home or any place.

Convenience: The biggest advantage that online bankin

brings to the table is its convenience.

Faster Banking: Online banking is a faster way of

performing banking functions.

Eco-Friendly: Online banking transactions

can be performed at any time and from
anywhere.

Easy Access: To perform online

banking tasks, all you need is a basic
computer system connected to the
web
Cost Saving: The
process is very cost
effective.

24X7:
any time ,
anywhere.

Reasons For Adoption Of E-Product And Service In Dccbs

Improve Customer Service

Increase Customer Awareness on Bank Products
Extend Bank Geographical Reach
Expand Bank Market Share
High-Quality Customer Service
Personalized Services
Increase Customer Loyalty

Challenges Faced In Adoption Of E-Product And Service In Dccbs

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Electornic Signature
Lack of Member Education
Absence of Staff in Technical Knowledge
Members Coordination
Absence of Awareness about E-Product and Service

Suggestions
Need for Standardization of Hardware, operating systems, system software, and application software
to facilitate interconnectivity of systems across branches
Need for high levels of security
Increase awareness programme about E-product and services in banking industry
Improve staffs technical skills and ability to handle the new technology adaptation
Technology plan with periodical upgradation
Business Process re-engineering
Address the issues of human relations in a computerized environment
Sharing the technology experience (Members to Members and Staff to Staff)
Conclusion
District Central Cooperative Banks are adopting e-product and service technologies in developing
countries face problems such as lack of telecommunications infrastructure, lack of qualified staff to develop
and support e-commerce sites, lack of skills among consumers needed in order to use the Internet, lack of
timely and reliable systems for the delivery of physical goods, low bank account and credit card penetration,
low income, and low computer and Internet penetration, in general. However are aware of the benefits that
are obtained through the

e-product and service adoption and these benefits include value creation,

communication improvement (both internal and external), lowering of business costs, improved productivity
among others.

REFERENCE

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1. National Federation Of State Cooperative Banks Ltd. J. K. Chamber, Fifth Floor Plot No. 76,
Sectror-17 Vashi, Navi Mumbai - 400 703 INDIA.
2. Mahadavan B. 2000. Business models for Internet-based e-commerce. California Management
Review Vol 42(4): p5569.
3. Mahadevan, B. and Venkatesh, N.S. (2000). "A framework for building online trust in business to
business E Commerce: Issues & Challenges".
4. Magutu O. Peterson, Richard O. N, and Haron M,. 2009, Modeling the Effects of E-Commerce
Adoption On Business Process Management: Case Study of Commercial Banks in Kenya:
Communications of the IBIMA. Vol 8, 2009 ISSN: 1943-7765 pg 175.
5. Chaudhury, Abijit; Jean-Pierre Kuilboer (2001). e-Business and e-Commerce Infrastructure.
McGraw-Hill.
6. Long 2000: Terry Pratchetts Scheibenwelt- Quizbuch (The Unseen University Challenge); Mnchen
(Germany), Goldmann, paperback translation ISBN 3442445140
7. Burke RR (2002). Technology and the Customer interface: What Consumers Want in the End-User
Computing satisfaction of Online Banking services:Empirical Evidence from Finland, Int. J. Bank
Markt.., 24 (2/3) 158-67
8. Poon WC (2008), Users Adoption of e-Banking Services: The Malaysian Perspective J. Bus.
Industrial Markt., 23 (1): 59-69
9. Maenpaa K, (2006), Clustering the consumer on the Basis of their Perceptions of the Internet
Banking Services, Internet research, 16 (3): 304-322
10. Laudon K and Traver, C (2008), E-Commerce: Business Technology, Society, 4thEdition
Prenticehall, Uppuer Saddler River, New Jersey

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