1) Acknowledgement

2) Introduction

Financial sector plays a key role in the economic growth of a country. Banks are
withal considered the most paramount part of the financial sector. Economic growth
& development of any country is mainly influenced by the advancement of the
banking sector in that particular nation. In the present era of technology demand
of financial services is transmuting at a very expeditious haste. To meet these
ordinate dictations adoption of incipient advanced technology in banking sector
is obligatory to accommodate subsisting customer and to magnetize more
customers withal. The banking sector is increasingly growing which facilitate the opportune
utilization of financial resources, immensely colossal flow of investment,

intermediation activities as well as operating in a rapidly innovating industry to

facilitate its customers. The globalization exhaustively transformed the face of
Indian banking industry from past few years. Banks have customarily been in the
front position of exploiting technology to ameliorate their products/services and
working competence. Over a long period of time banks have been utilizing
electronic and telecommunication modes for distributing a wide range of value-
integrated product/services. The transaction channels include private networks;
public networks etc. and the devices include phone, computers, Automated Teller
Machines (ATMs), etc. The extensive utilization of computers, laptops, tablet,
mobile phones etc. make facile access to internet and World Wide Web. This form
of banking is generally referred to as Electronic Banking, albeit the range of products
and services offered by different banks vary considerably both in their content
and sophistication. From the perspective of banking products and services being
offered through internet, debit and credit cards, ATMs, mobiles, e-banking is
nothing more than traditional banking services distributed through an electronic
communication backbone. There are not many inventions that have transmuted
the business of banking as expeditiously as the e-banking revolution. World over
banks are reorienting their business strategies towards new opportunities offered
by e-banking. E- Banking has enabled banks to scale borders and thus bring about
new opportunities.
2) OBJECTIVES OF THE STUDY
1. To identify various e-banking services/products provided by Indian banks.
2. To study and analyze the progress made by Indian banking industry in adoption
of technology to provide technology based services.
3. To anlayse the future prospects of the e-banking services of the Indian Banking
Industry.
4. To study the challenges faced by Indian banks in adoption of technology and
make recommendations to tackle these challenges.

VARIOUS FORMS OF E-BANKING:

A.INTERNET BANKING:
Internet Banking lets you handle many banking transactions via your
personalcomputer. For instance, you may use your computer to view your account
balance,request transfers between accounts, and pay bills electronically.Internet banking system
and method in which a personal computer is connected bya network service
provider directly to a host computer system of a bank such
thatc u s t o m e r s e r v i c e r e q u e s t s c a n b e p r o c e s s e d a u t o m a t i c a l l y w i t h o
ut need for intervention by customer service representatives. The
s y s t e m i s c a p a b l e o f distinguishing between those customer service req
u e s t s w h i c h a r e c a p a b l e o f automated fulfillment and those requests which
require handling by a customer service representative. The system is integrated with the host
computer system of the bank so that the remote banking customer can access other automated
servicesof the bank. The method of the invention includes the steps of inputting a
customer banking request from among a menu of banking requests at a remote
personnelcomputer; transmitting the banking requests to a host computer over a
network;r e c e i v i n g t h e r e q u e s t a t t h e h o s t c o m p u t e r ; i d e n t i f yi n g t h e t yp e o f
c u s t o m e r banking request received; automatic logging of the service request, comparing
thereceived request to a stored table of request types, each of the request types havingan
attribute to indicate whether the request type is capable of being fulfilled by
acustomer service representative or by an automated system; and, depending
uponthe attribute, directing the request either to a queue for handling by a
customer service representative or to a queue for processing by an automated system
B.AUTOMATED TELLER MACHINES (ATM):
An automated teller machine or automatic teller machine (ATM) is an
electronicc o mp u t e r i z e d t e l e c o mmu n i c a t i o n s d e v i c e t h a t a l l o ws a f i
n a n c i a l i n s t i t u t i on ' s customers to directly use a secure method of
communication
to access their bank a c c o u n t s , o r d e r o r ma k e c a s h wi t h d r a wa l s a n d c
h e c k t h e i r a c c o un t b a l a n c e s without the need for a human bank teller. Many
ATMs also allow people to deposit cash or cheques, transfer money between their
bank accounts, top up their mobile phones' pre-paid accounts or even buy postage
stamps.On mo s t mo d e r n AT M s , t h e c u s t o me r i d e n t i f i e s h i m o r
h e r s e l f b y i n s e r t i n g a p l a s t i c c a r d w i t h a ma g n e t i c s t r i p e o r a
p l a s t i c s ma r t c a r d wi t h a c h i p , wh ic h contains his or her account
number. The customer then verifies their identity byentering a pass code,
often referred to as a PIN (Personal Identification Number) of four or more digits.
Upon successful entry of the PIN, the customer may perform atransaction.The
Indian market today has approximately more than 17,000 ATM’s.

C.CREDIT CARDS/ DEBIT CARDS:

The Credit Card holder is empowered to spend wherever and whenever
he wantswith his Credit Card within the limits fixed by his bank. Credit
Card is a post paidcard. Debit Card, on the other hand, is a prepaid
card with some stored
value.E v e r y t i m e a p e r s o n u s e s t h i s c a r d , t h e I n t e r n e t
B a n k i n g h o u s e g e t s m o n e y transferred to its account from
the bank of the buyer. The buyers account is debitedwith the exact
amount of purchases. An individual has to open an account with
theissuing bank which gives debit card with a Personal Identification
Number (PIN).When he makes a purchase, he enters his PIN on shops
PIN pad. When the card isslurped through the electronic terminal, it
dials the acquiring bank system - either Master Card or VISA that
validates the PIN and finds out from the issuing bank whether to
accept or decline the transactions. The customer can never
overspend b ecau se the system rejects an y transaction wh ich
exceeds th e balan ce in h is account.
D.TELE BANKING:
Undertaking a host of banking related services including
financial transactionsfrom the convenience of customers chosen place
anywhere across the GLOBE andany time of date and night has now
been made possible by introducing on-lineTelebanking services. By
dialing the given Telebanking number through a landlineor a mobile
from anywhere, the customer can access his account and by
followingth e user-f riend ly men u , entire b ank ing can be d one
th rough In teractiv e Voice Response (IVR) system. With sufficient
numbers of hunting lines made available,customer call will hardly fail.
The system is bi-lingual and has following
facilitiesoffered• B a l a n c e i n q u i r y a n d t r a n s a c t i o n i n
quiry in all• I n q u i r y o f a l l t e r m d e p o s i t a
c c o u n t •Statement of account by Fax, e-mail
or ordinary
mail.• C h e q u e b o o k r e q u e s t •Stop p
ayment which is on-
line and ins tantan eous•Transfer of funds with
CBS which is automatic and
instantaneous• U t i l i t y B i l l P a y m e n t s
•Renewal of term deposit which is automatic
and instantaneous

E.SMART CARD:
Banks are adding chips to their current magnetic stripe cards to
enhance securityand offer new service, called Smart Cards. Smart
Cards allow thousands of timesof information storable on magnetic
stripe cards. In addition, these cards are highlysecure, more reliable and
perform multiple functions. They hold a large amount of personal
information, from medical and health history to personal banking
and personal preferences
F.E-CHEQUE:
•An e-Cheque is the electronic version or
representation of paper cheque.• I t c a n n o w b e
used in place of paper cheques to do
a n y a n d a l l r e m o t e transactions.• A n E -
cheque work the same way a cheque does, the
c h e q u e w r i t e r " w r i t e s " th e e-Ch equ e using on e of man y
typ es of electron ic d ev ices and "gives" th e e-Cheque to the
payee electronically. The payee "deposits" the Electronic Cheque