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Internet banking (or E-banking) means any user and a personal computer and a browser can
get connected to his bank -s website to perform any of the virtual banking functions. In internet
banking system the bank has a centralized database that is web-enabled. All the services that
the bank has permitted on the internet are displayed in menu. Any service can be selected and
further interaction is dictated by the nature of service. Once the branch offices of bank are
interconnected through terrestrial or satellite links, there would be no physical identity for any
branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The
delivery channels include direct dialup connections ,private networks, public networks, etc.
with the popularity of computers, easy access to Internet and World Wide Web
(WWW),Internet is increasingly used by banks as a channel for receiving instructions and
delivering their products and services to their customers. This form of banking is generally
referred to as Internet Banking, although the range of products and services offered by different
banks vary widely both in their content and sophistication.

Meaning of E-Banking

E-bank is the electronic bank that provides the financial service for the individual client by
means of Internet.

Electronic banking

is an umbrella term for the process by which a customer may perform banking transactions
electronically without visiting a brick-and-mortar institution. The following terms all refer to
one form or another of electronic banking: personal computer (PC) banking, Internet banking,
virtual banking, online banking, home banking, remote electronic banking, and phone banking.
PC banking and Internet or online banking is the most frequently used designations. It should
be noted, however, that the terms used to describe the various types of electronic banking are
often use interchangeably.
Electronic banking is an activity that is not new to banks or their customers. Bank shaving has
been providing their services to customers electronically for years through software programs.
These software programs allowed the user’s personal computer to dial up the bank directly. In
the past however, banks have been very reluctant to provide their customers with banking via
the Internet due to security concerns. Today, banks seem to be jumping on the bandwagon of
Internet banking. Why is there asudden increase of bank interests in the Internet? The first
major reason is because of the improved security and encryption methods developed on the
Internet. The second reasons that banks did not want to lose a potential market share to banks
that were quick offer their services on the Internet.

Many of the banks like ICICI, HDFC, IndusInd, IDBI, Citi bank ,Global Trust Bank (GTB),
Bank of Punjab and UTI were offering E-banking services. Based on the abovestatistics and
the analysts’ comments that India had a high growth potential for e-bankingthe players focused
on increasing and improving their E-banking services. As a part of this, the banks began to
collaborate with functions online.

E-banking is definedas the automated delivery of new and traditional banking productsand
services directly to customers through electronic, interactive communicationchannels. E-
banking includes the systems that enable financial institution customers.Individuals or
businesses, to access accounts, transact business, or obtain information onfinancial products
and services through a public or private network including the Internet,Customers access e-
banking services using an intelligent electronic device.

The E-banking was firstly introduced in India by the ICICI around 1996. There after many
other banks like HDFC, IndusInd bank, IDBI, Citibank Trust Banks, UTI, etc.followed the
service. As today private and foreign bank had started capturing the marketthrough e-banking
hence “the competition is heating up and the lack of technology canmake a bank loose a
customer” so now the public banks are breaking the shackles of traditional set-up and gearing
up to face the competition posed by the private sector counterparts.

The Global E-Banking Scenario

The banking industry is expected to be a leading player in e-business. While the banks
indeveloped countries are working primarily via Internet as non-branch banks, banks in
thedeveloping countries use the Internet as an information delivery tool to improverelationship
with customers.In early 2001, approximately 60 percent of e-business in the UK was
concentrated in thefinancial services sector, and with the expected 10-fold increase of the
British e-businessmarket by 2004, the share of the financial services will further increase.
Around one fifthof Finish and Swedish bank customers are banking online, while in the US,
according toUNCTAD, online banking is growing at an annual rate of 60 percent and the
numbers of online accounts are expected to reach 35 million by 2014.Banks have established
an Internet presence with various objectives. Most of them areusing the Internet as a new
distribution channel. Financial services, with the use of Internet, may be offered in an
equivalent quantity with lower costs to the more potentialcustomers. There may be contacts
from each corner of the world at any time of day or night. This means that banks may enlarge
their market without opening new branches.The banks in the US are using the Web to reach
opportunities in three differentcategories:

 to market information, to deliver banking products and services, and

 Toimprove customer relationship.

In Asia

The major factor restricting growth of e-banking is security, in spite of severalcountries being
well connected via Internet. Access to high-quality e-banking products isan issue as well.
Majority of banks in Asia are just offering basic services compared withthose of developed
countries. Still, e-banking seems to have a future in Asia. Accordingto McKinsey survey, e-
banking will succeed if the basic features, especially bill payment, are handled well. Bill
payment was the most popular feature, cited by 40 percent of respondents of the survey.
However, providing this service would be difficult for banksin Asia because it requires a high
level of security and involves arranging transactionswith a variety of players.

In India

Approximately one percent of high and middle-income group bankingcustomers conducted

banking on the Internet in 2010 compared to 5 to 6 percent inSingapore and South Korea. In
2001, a Reserve Bank of India survey revealed that morethan 20 major banks were either
offering e-banking services at various levels or plannedto do so in the near future. Some of the
private banks included ICICI Bank, HDFC BankIndusInd Bank, IDBI Bank, Citibank, Global
Trust Bank, Bank of Punjab and UTI Bank.In the same year, out of an estimated 0.9 million
Internet user base, approximately 17 percent were reported to be banking on the Internet. The
above statistics reveal that Indiadoes have a high growth potential for e-banking. The banks
have already started focusingon increasing and improving their e-banking services. As a part
of this, the banks have begun to collaborate with various utility companies to enable the
customers to performvarious functions online.In 2012, over 70 percent of the banks in the US
were offering e-banking services.However, large banks appeared to have a clear advantage
over small banks in the rangeof services they offered. Some banks in the US were targeting
their Internet strategiestowards business customers. Apart from affecting the way customers
received bankingservices; e-banking was expected to influence the banking industry structure.
Theeconomics of e-banking was expected to favor large banks because of economies of
scaleand scope, and the ability to advertise heavily. Moreover, e-banking offered entry
andexpansion opportunities that small banks traditionally lacked.

In Europe

The Internet is accelerating the reconfiguration of the banking industry intothree separate
businesses: production, distribution and advice. This reconfiguration is being further driven by
the Internet, due to the combined impact of:

 The emergence of new, more focused business models.

 New technological capabilities that reduces banking relationship and transactioncosts.
 High degree of uncertainty over the impact that new entrants will have on current
business models.

Though e-banking in the Europe is still in the evolutionary stage, it is very clear that it ishaving
a significant impact on traditional banking activities. Unlike in the US, thoughlarge banks in
the Europe have a competitive edge due to their ability to invest heavily innew technologies,
they are still not ready to embrace e-banking. Hence, medium-sized banks and start-ups have
an important role to play on the e-banking front if they can takeconcrete measures quickly and

The E-Banking Trends

Convergence is one of the clear visible trends in the banking industry. Here, convergencedoes
not mean offering banking, broking and insurance services under one corporatename through
the Internet. It covers different dimensions, including channel delivery,sales culture, back-
office processes, and the knowledge management infrastructure all being integrated via
Internet. Few banks take these different dimensions intoconsideration. Instead, they view
convergence purely as a product-centric developmentthat will enable them to cross-sell
products. A strategy that does not go beyond productconvergence is bound to have some
limitations. For example, imagine a situation wherecustomer service personnel in a so called
`converged' bank is required to answer banking, brokerage, and insurance questions coming
through multiple channels including theInternet, branches, call centers, or ATMs. This bank is
unlikely to succeed since, thoughit has expanded the product line, it has not made any efforts
to broaden the skill sets of the personnel who support these channels.Effective knowledge
management is the key to the e-business success of converged banking institutions. However,
this requires high level of cross-organizationalcooperation and information sharing. An
effective knowledge management system willvastly improve the institution's ability to know
its customers. Robust customer information management systems at the front-end, coupled
with efficient fulfillment processes, can enable banks to shorten the delivery time of their
products and services.

Observation of study

For this booklet, e-banking is defined as the automated delivery of new and traditional banking
products and services directly tocustomers through electronic, interactive
communicationchannels. E-banking includes the systems that enable financialinstitution
customers, individuals or businesses, to accessaccounts, transact business, or obtain
information on financialproducts and services through a public or private networkincluding the
Internet. Customers access e-banking services usingan intelligent electronic device, such as a
personal computer (PC),personal digital assistant (PDA), automated teller machine
(ATM),kiosk, or Touch Tone telephone. While the risks and controls aresimilar for the various
e-banking access channels, this bookletfocuses specifically on Internet-based services due to
theInternet’s widely accessible public network. Accordingly, thisbooklet begins with a
discussion of the two primary types of Internet websites: informational and transactional.


WEBLINKINGA large number of financial institutions maintains sites on theWorld Wide

Web. Some websites are strictly informational, whileothers also offer customers the ability to
perform financialtransactions, such as paying bills or transferring funds betweenaccounts.


Wireless banking is a delivery channel that can extend the reach and enhance the convenience
of Internet banking products andservices. Wireless banking occurs when customers access
afinancial institution's network(s) using cellular phones, pagers,and personal digital assistants
(or similar devices) throughtelecommunication companies’ wireless networks.
Wirelessbanking services in the United States typically supplement afinancial institution's e-
banking products and services.

 Person-to-Person Payments

Electronic person-to-person payments, also known as e-mailmoney, permit consumers to send

“money” to any person orbusiness with an e-mail address. Under this scenario, a
consumerelectronically instructs the person-to-person payment service totransfer funds to
another individual. The payment service thensends an e-mail notifying the individual that the
funds areavailable and informs him or her of the methods available toaccess the funds including
requesting a check, transferring thefunds to an account at an insured financial institution, or
retransmitting the funds to someone else. Person-to-personpayments are typically funded by
credit card charges transferfrom the consumer’s account at a financial institution. Sinceneither
the payee nor the payer in the transaction has to have anaccount with the payment service, such
services may be offeredby an insured financial institution, but are frequently offered byother
businesses as well.

Banking Services through Internet:

1. The Basic Level Service is the banks’ web sites whichdisseminate information on different
products and servicesoffered to customers and members of public in general. Itmay receive and
reply to customer’s queries through e-mail.

2. In the next level are Simple Transactional Web sites whichallows customers to submit their
instructions, applications fordifferent services, queries in their account balances, etc. butdo not
permit any fund-based transactions on their accounts.

3. The third level of Internet banking service are offered byFully Transactional Web sites which
allow the customers tooperate on their accounts for transfer of funds, payment of different bills,
subscribing to other products of the bank andto transact purchase and sale of securities, etc.
The aboveforms of Internet banking service the customer or by newbanks, who deliver banking
service primarily through Internetor other electronic delivery channels as the value
addedservices. Some of these banks are known as ‘Virtual’ banks or‘Internet only’ banks and
may not have physical presence in acountry despite offering different banking services.
The Indian Scenario: -

 Internet banking, both as a medium of delivery of bankingservices and as a strategic

tool for business development.
 At present, the total internet users in the country areestimated at 9 lakh.
 Cost of banking service through the Internet from a fractionof costs through
conventional methods.

Plastic Cards as Media for Payment: -

There are four types of plastic cards being used as mediafor making payments. These are:

1. Credit Card

2. Debit Card

3. Smart Card

4. ATM Card

1. Credit Cards: - The credit card enables the cardholders to: Purchase any itemlike clothes,
jewelers, railway/air tickets, etc.Pay bills for dining in a restaurant or boarding and lodging in
hotel Avail of any service like car rental, etc.

2. Debit Cards: -A debit card is issued on payment of a specified amount by theissuing company
like a telephone company to a customer on cashpayment or on debiting his account by a bank.
Thus it is like an electronic purse, which can be read and debitedby the required amount. It may
be noted that while through a credit card, the customerfirst makes a purchase or avails service
and pays later on, but forgetting the debit card, a customer has to first pay the due amountand
then make a purchase or avail the service. For this reason,debit card are not as popular as credit

3. Smart Cards: -Smart Cards have a built-in microcomputer chip, which can beused for storing
and processing information. For example, aperson can have a smart card from a bank with the
specifiedamount stored electronically on it. As he goes on makingtransactions with the help of
the card, the balance keeps onreducing electronically. When the specified amount is utilized
bythe customer, he can approach the bank to get his card validatedfor a further specified
amount. Such cards are used for payingsmall amounts like telephone calls, petrol bills, etc.
.4. ATM Cards: - The card contains a PIN (Personal Identification Number) which isselected
by the customer or conveyed to the customer andenables him to withdraw cash up to the
transaction limit for theday. He can also deposit cash or cheque.


ICICI Bank Online

Banking Services provide the largest private bank in India right here at your desktops. Banking
becomes a pleasure as the transactions and services become instant with ICICI Bank online
Internet banking. The services provided are totally secure and unique. These cover online
account transactions and operations, credit card and account applications and payments, share
trading and investments through mutual funds, bill payments, statement generation anda virtual
demo of each service. See in brief in final report. Role of customer when using e-banking

 You can access only by using your User ID and Password. During the
first login attempt, it is mandatoryto change both passwords - login and transaction –
whichwould have been mailed to you by the bank.
 If you forget your password, you will have written to us usingthe "Email Us" option.
The Bank will then issue a newpassword and send it to your mailing address as per
ourrecords. Kindly check with your branch that this address isupdated...
 Make sure no one can see the account login name orpassword you are entering when
you log on
 Logout of before moving on to otherWebsites.
 Before leaving the PC please "close" the browser.
 Do not write your login name or passwordanywhere.
 Do not leave your login name and password such thatsomeone sitting at your computer
could see them.
 Never reveal your login name and passwordto anyone (no
representative of ICICI Bank will ever ask youfor your password).
 Notify ICICI Bank immediately if you notice any unusualaccount activity.
 Keep all documents that include your account information ina secure location.
 When you login you can view the date and time of your lastlog in.

Features offered by ICICI bank for internet banking

 Balance enquiry and statement
 Transfer fund online
 Card to card fund transfer
 Use debit card online
 Prepaid mobile recharge
 Subscribe for mobile banking
 Link bank account to ATM
 Lock / activate debit cards /ATM
 Request a cheque book
 Stop payment.


YEAR 2007 2008 2009 2010 2011 2012 2013

% 9 15 17 22 35 47 59

Indian E-banking Scenario

As per the international report the banking transactions on a brick and mortar bankingcosts
around $ 1.1. While through ATM it costs around $ 0.27 and just 1 percent of over the counter
banking in case of Internet banking. Statistics such as these have woken theIndian Banking
Industry. Thus, the Indian banking system is seeing a fabulous change inthe quality of service
provided by them. Technology is the root of this change, which is implemented by the banks’
to win more business from customers. Almost all the private sector banks are moving towards
e-enabling their existing products. HDFC Bank and ICICI Bank have taken a lead in
introducing e-banking in India

.Internet banking starts from migrating existing products to the net. This started initially with
simple functions such as getting information about interest rates, checking account balances
and computing loan eligibility. Then the services were extended to online bill payment, transfer
of funds between accounts and cash management services for corporate. Recently, banks
started setting up payment gateways for B2B and B2Ctransactions. This is to facilitate payment
for e-commerce transactions by directly debiting bank accounts or through credit cards. Banks
can earn a commission based income, on the transaction or sale value resulting in higher other
income. This could be more than the revenues they can generate from credit card transactions.

Private sector banks have leveraged the Internet effectively in taking away the customers from
public sector banks and significantly increased their revenue potential. Internet banking is just
one manifestation of these banks’ technological capabilities. They have a complete automation,
an electronic customer database, real time transaction processing capabilities and the latest
technological platforms. Management of these banks is veryfocused in using technology as a
key competitive tool.

The capability of the managementis also visible in terms of their profitability. Among the
private sector banks HDFC Bank and ICICI Bank have excellent returns on equity compared
to their peers in the industry.

These banks commenced operations few years and have negligible excess in terms of branches
and employees. Therefore unlike most other banks around the world, e-bankingis not an added
cost for them. In fact it is expected to contribute significantly to their revenues and profits in
years to come.


 Account information – summary of account and transactions

 Bills payment
 Funds Transfer including third-party transfers
 Requests for cheque books, stop payment, account opening,
 Reporting loss of ATMs card
 Online e-shopping payments
 Communication with Account Manager
 Personalized viewing of content update – personal finance, select articles one
Mediums of E-banking

Electronic banking, also known electronic fund transfer (EFT), uses computer and electronic
technology as a substitute for checks and other paper transactions. EFT are initiated through
devices like cards or codes that let you, or those you authorize, access your account. Many
financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for
this purpose. Some use other forms of debit cards and personal Identification Numbers (PINs)
for this purpose. Some use other forms of debit cards such as those that require, at the most,
your signature or a scan. The federal Electronic Fund Transfer Act (EFT Act) covers some
electronic consumer transactions.

Following are the electronic medium by which services are generally provided by the banks as
a part of e-banking services.

 Internet Banking
 ATM (Automatic Teller Machine)
 Phone Banking
 Mobile Banking
 Payment Cards (Debits/Credit Card)

All the above mediums provide services, which can be, also know as “any time anywhere
banking”. This facilitates the customer of the bank to operate their account from any corner of
the world, without visiting local or any subsidiary branch of their banks. Efforts are made by
the bank not only to provide the facility to the customer, but also to reduce the operational cost
of the bank by providing e-banking services. So with this, banks have to employ less staff and
still would be able to deliver service to the customer round the corner.

1. Internet Banking

Net banking is a web-based service that enables the banks authorized customers to access their
account information. It allows the customers to log on to the banks website with thehelp of
bank’s issued identification and personal identification number (PIN). The banking system
verifies the user and provides access to the requested services, the range of products and
service offered by each bank on the internet differs widely in there content .Most banks offer
net banking as a value-added service. Net banking has also led to the emergent of new banks,
which operate only through the internet and do not exists physically, Such banks are called
“virtual” banks or “Internet Only” banks .A couple of years ago, there was a belief even among
bankers that customers opening new accounts wanted the online banking facility, just to ‘feel
good’ and very few of them actually used that services. Today, bankers believe that the trend
from ‘nice to have’ is changing to ‘need to have’ .after all it depends on how busy a person is
Services provided through Internet Banking.

 account information
 E-cheques (Online Fund Transfer)
 Bill Payment Service
 Requests And Intimations
 Demat Account share trading
 account information

Account information Provides summary of all bank accounts. Allow transaction tracking which
enables retrieval of transaction details based on cheque number, transaction amount, and date.
Provide account statement and transaction reports used on user-defined criteria. Customers can
even download and print the statement of accounts.

 E-Cheques ( Online Fund Transfer)

Customer can transfer funds: Transfer funds between accounts, even if they are in different
branches’ cities Customer can also transfer funds to any person having an account with the
same bank any time ,anywhere, using third party funds transfer option.

 Bill Payment Service

Banks Bill Pa is the easiest way to manage bills. A/c holder can pay their regular monthly bills
i.e. telephone, electricity, mobile phone, insurance etc. at anytime, anywhere for free. Saves
time and effort. Make bill payments at customer’s convenience form their home or office .Lets
a/c holders check their hill amount before it is debited form their account. No debits to account
without their knowledge. No more missed deadlines, no more loss of interest – a/c holder can
schedule their bills in advance, avoid missing the bill deadlines as well as earn extra interest
on their money. Track payment history – all payments to a biller are stored automatically for
future reference. No queuing up at collection centers or writing cheque any more. Just a few
clicks and customers account will be debited for the exact amount they ask.
 Requests And Intimations

Can electronically submit a request for:

Cheque-book Stop payment instructions Opening a fixed deposit Opening a recurring deposit
Intimate for the loss of ATM card Register online for phone and mobile banking Cheque status
Online application for debit card Issue a DD or a Banker’s cheque form account at special rates.
Just select the account to be debited form and give details of the amount, location and

The demand draft will be couriered to a/c holder at their mailing address .Customers can get
their applications for issuance of Letters of Credit and Bank Guarantees processed online Book
your Railways Ticket Online.

 Demat Account and Share Trading Demat Account

Demat is commonly used abbreviation of ‘Dematerialization’, which is a process whereby

securities like share, debentures are converted from the ‘material’ (paper documents)unto
electronic data and stored in the computer of an electronic Depository. A depository is a
security ‘banks,’ where dematerialized physical securities are held incus today, and form where
they can be traded. This facilitates faster, risk-free and low cost settlement.

Share Trading

In share trading a customer can buy and sell securities online without stepping into a broker’s
office. Once the share are dematerialized then the trading can be done from home or office. As
a/c are directly linked to the customer’s bank a/c, so there is no need to write cheque for the
payments or to fill up the slips to deposit the cheque. Amount for the purchase and sale of
securities is automatically debited or credited to their bank a/c. it also brings the same
convenience while investing in Mutual funds also Hassle free and Paperless.


Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank almost
anytime. To withdraw cash, make deposits, or transfer funds between accounts, you generally
insert an ATM card and enter your PIN. Some financial institution and ATM owners charge a
fee, particularly to consumers who don’t have accounts with the more on transactions at remote
locations. Generally, ATMs must tell you they charge a fee and its amount on or at the terminal
screen before you complete the transaction. Check the rules of our institution and ATMs you
use to find out when or whether a fee is charged. It won’t be just if I start explaining what an
ATM is. ATMs and cash dispensers are by far the largest investment ever made in electronic
self-service by financial institutions. Over US$ 40 billion has been invested in simply buying
these machines and many times that in running them.

There are now over 1.1 million machines operating in over 140countries world- wide. The
banks are losing the cashier checks, check cashing and even cash dispensing to this-stores and
grocery stores. They are asleep at the switch and watching more transactions walk away to
convenience stores and supermarkets that provide 24 hour access and integrated transactions.
ATMs do provide a larger set of functions, such as check cashing, ticket sales or money orders.
We already know that cash dispensing as a dedicated function is a sustainable applications, the
question is whether that application can be incorporated successfully into a more complex
consumer product that offers multiple applications.

It is worth noting that, due to market saturation, overall ATM usage is increasing while
transaction volume on a per-ATM basis is now in decline.

 Cash withdrawal

: Withdraw up to Rs.15,000/- per day from your account. A fast cash option provides the facility
of withdrawing prefixed amounts. Cash allows you to withdraw Rs.3000/- in one shot.

 Balance Enquiry:

Know your ledger balance and available balance

 Mini Statement:

Get a printout of your last 8 transactions and your current balance.

 Deposit Cash / Cheques :

available at all full function ATMs. Customers can deposit both cash and cheques. / Cash
deposited in ATMs will be credited to the account on the same day (provided cash is deposited
before the clearing) and cheques are sent for clearing on the next working day.

 Funds Transfer:
Transfer funds from one account to another linked account in the same branch.

 PIN Changes

Change the Personal Identification Number (PIN) of ATM or Debit card.

 Payments

The latest feature of our ATMs, this functionality can be used for payment of bills, making
donations to temples / trusts, buying internet packs, airtime recharges for prepaid mobile
phones and much more…

 Others

Request for a checkbook from our ATMs and our concerned branch will dispatch it such that
it reaches you within 10 working days.

ATM Advantages

24-hour access to cash You can withdraw up to Rs. 10,000/- per day on your ATM Card. The
fast cash option saves your time by providing the cash in denominations of Rs. 500/-

 Balance inquiry

Your updated balance will appear on the screen and will also be printed on thetransaction slip.

 Mini-statement request

Get details of the last 9 transactions on your account with the mini-statement, alongwith your

 Cheque book request

Send us a request for a cheque book or account statement it will arrive at your doorstep.

 Funds transfer

Transfer money from one of your accounts to another. It’s easy, select the account from which
you want to transfer, then indicate the amount and the account to which you want it transferred.
Both accounts must be linked to your ATM card and customer ID. A maximum of 5 saving
and 5 Current accounts can be linked.
 PIN change

You can conveniently charge your (PIN) given at the time of opening your account) whenever
you wish. Stay totally in control and ensure complete security for your ATM Card.

 Bill Pay

Pay your cellular, telephone and electricity bills using your ATM Card.

 Anytime cash deposits

Your cash or cheques can be deposited into your account and the ATM will immediately print
a receipt for the same.


The card industry, which is growing at the rate of 20% per annum, is flooded ranging from
gold, silver, global, smart to secure, the list is endless. From just two players in early 80s, the
industry now houses over 10 major players vying for a major chunk of the card pie. Currently
four major bishops are ruling the card empire – Citibank, Standard Chartered Bank. HSBC and
State Bank of India (SBI). The industry, which is catering to over 3.8 million card users, is
expected to double by the fiscal 2003. According to a study conducted by State bank of India,
Citibank is the dominant player, having issued 1.5 million cards so far. Stanch art follows way
behind with 0.67 million while Hong Kong Bank has 0.3 million credit card customers. Among
the nationalized banks, SBI tops the list with 0.28 million cards, followed by Blanks of Baroda
at 0.22 million. The credit card market in India, which started out in 1981, is on the verge of
precedented boom. Between 1987 and 2000, the market has virtually grown to over 3.8 million
cards with almost 25-30% growth in new card holders. The latest innovation in credit cards is
the introduction of a magnetic slip in the card for use in withdrawing cash at the automatic
teller machine (ATM), of which abut60000 are already in existence in the world. In India also
ATMs have made late appearance, but now spreading very rapidly. As per statistics published
by RBI there are 1895 ATMs in India as at the end of the year 2014 but it is also regularly

Advantages of Credit Card

The following are the advantages of credit cards:

 The credit card holders need not to carry either traveler’s cheques or cash with them
and they are free from the security of cash
 Traveling facilities are available in hotels, restaurants and airways to the cardholders.
 Each card holder gets insurance facility which is up to one lakh on ordinary insurance.
 It has become a status symbol. Railway tickets are available on special windows. Extra
charges are made by the railway and the cancellation of tickets is also allowed and the
amount is directly credited in the bank account of the card holder.
 The business of the card holder individuals or institution has been because the
businessmen are assured for the payment as the transactions have been finalized on the
basis of credit cards.
 Credit cards enhance the credit of banks and the credit of new customers and consumers
is enhanced.
 Deposits in saving and current accounts increase.
 Service charges on credit card increase the profitability of banks

Disadvantages of Credit Card Credit cards its own Disadvantages as discussed below:

 Credit card is a contact in advance and if the card holder does not make payment, the
recovery by bank becomes difficult.
 Card holders spend in excess of their incomes and it poses the problem of recovery
form them.
 Bank’s profitability is adversely affected due to increase in overdraft of cardholders and
difficulties in repayment by them.


In India this facility has increased the business activities; middle and upper middle classes are
availing this facility. It has become popular and status symbol in our country hence the
prospects of credit cards are bright.

Smart Cards

A smartcard resembles a credit card except that it has a microchip embedded within it, which
allows the smartcard to store information and sometimes to even perform simple calculations.
Common smartcard chips typically holds about 8,000 bytes(characters) of information, which
enables the smartcard to perform a variety of functions such as identification , storing bank
account information an holding digital cash. A number of smartcards are on the market today,
and these are used in a wide range of applications. Smart card has received a lot of recognition
in the financial press, and several banks have already conducted trials with its smartcard. Wells
Fargo & Co., amajor California bank based in San Francisco, will issue Made smartcards to all
of its online banking customers in 2998, a number which could reach into the hundreds of
thousands. Because MasterCard International holds a 51% stake in index, It could become the
defect international standard for bank-issued smartcards.

Smart Cards – The new Innovation

A smart card is a miniaturized personal computer (PC), which can be used for adazzling array
of applications, and also as ‘digital’ cash. It contains a micro processor,memory and tailored
software. The software security system used for these cards is almost as foolproof as those used
by nuclear establishments and leading international banks! Smart cards can manage security
procedures using passwords and state-of-the-art encryption techniques. Further, identity traits
such as digitized photos, signatures and fingerprints being placed on the card make it fraud-


E-money may be broadly defined as “an electronic store of monetary value on at echnical
device used for making payments to undertakings other than the issuer on atechnical device
used for making payments to undertakings other than the issuer on at echnicale device used for
making payments to undertakings other than the issuer without necessarily involving bank
accounts in the transaction, but acting as a prepaid bearer instrument” (European Central Bank,
1998)These products could be classifiedin to two broad categories viz.,

A) Pre-paid stored value card (sometimes called “electronic purse”) and

B) Pre-paid software based product that used computer networks such as internet(sometimes
referred to as “digital cash” or “network money”)The stored value card scheme typically uses
a microprocessor chip embedded in a plastic card while software based scheme typically
specialized software installed in a personal computer. The stored value card could be of three
types single-purpose card, closed-system or limited-purpose card could be of three types single-
purpose card, closed-system or limited-purpose card and general-purpose or multi-purpose
The single-purpose card generally with a magnetic chip recording the amount of fund therein
is designed to facilitate only one type of transaction ex. telephone calls, public transportation,
laundry, parking facilities etc. Here, the distinguishing point is that the issuer and the service
provider (acceptor ) are identical for the cards. These cards are expected to substitute coins and
currency notes. It is important to note that the European Central Bank (ECB) has exempted
these single-purpose pre-paid cards from the purview of their policy initiatives on e-money
because of their smaller denominations as well as limited risk exposure for customers and the
financial systems a whole.


Now your bank account is now just a phone call away. Through Phone Banking you can:

Check your account balance.

Check the last 5 transactions in your account.

Enquire on the cheque status.

Have a mini statement faxed across to you.

Request for a cheque book / Account statement.

Enquire on your Fixed deposits / TDS.

Open a fixed deposit

Request for Demand Draft / Managers Cheques.

Transfer funds amongst your linked accounts

Pay utility and HDFC Bank Credit Card bills.

Do a stop cheque payments.

Report loss of your ATM /Debit Card.

Product information.

Enquire on the interest / Exchange rates. Phone banking facility is available round the clock,
every day, in Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad,
Chandigarh and Pune.
E-age Advantages


When you use the Phone Banking facilities, your transactions are completely secure. When
you open an account with us, you are given a unique Telephone Identification Number (TIN),
which is completely confidential.

Choose your language

You can choose between English and Hindi for guidance through the Response (IVR) menu
of services, at the time of calling the bank.

Account derails/balance enquiry

Get up-to-the-second details of your Savings or Current Accounts and your fixed Deposits. Get
details of the last five transactions (on the IVR), which would be readout to you at the touch of
a button,. What’s more, you can even have a mini account statement of the last 9 transactions
faxed to you.

Cheque book / account statement requests

Register a request for statement of accounts for the current period through the IVR and the
same will be mailed to you on the next working day.

Stop payment requests

Stop payment of a cheque, 24 hours a day. You have the facility to stop a single cheque or a
series of cheques.

Fixed Deposits

You can easily open a Fixed Deposit over the phone, by simply authorizing a transfer of funds
from your savings Account. The deposits can be opened in the names of the account holders in
the funding account. You may also book the Fixed Deposit in your name alone in the funding
account. You may also book the Fixed Deposit in your name alone and maintain a sweep-in
facility. You can also enquire about the details of your Fixed Deposit, or tax deducted at Source,
if any, using the Phone Banking service. This facility is available only during Phone Banking
Reporting of lost ATM / Debit Card

If you happen to lose your ATM/Debit card, call your local Phone banking number right away.
This facility is available 24 hours a day, 7 days a week.

Demand Drafts

You can now place a request for a Demand Draft or Manager’s Cheque worth up to Rs. 50,000/-
per customer ID per day, on the phone. For HDFC Banked Prefer redclien the limit is Rs.
100,000/- per day. The draft or cheque will be sent to the address on our records by courier on
the next working day.

Fund transfers

If you hold multiple accounts with us, all you have to do is call in to transfer funds between
accounts, provided the same are linked to the same Cost ID number.

There is no fund transfer limit.

Talk to a Phone Banker

You can talk to a phone Banker for all the financial transactions and for any other account
related details over the phone.


Since transactional websites typically enable the electronic exchange of confidental customer
information and the transfer of funds, services provided through these websites expose a
financial institution to higher risk than basic informational websites. Whole sale -banking
systems typically expose financial institutions to the highest risk per transaction, since
commercial transactions usually involve larger dollar amounts. In addition to the risk issues
associated with informational websites, examiners reviewing transactional e-banking services
should consider the following issues:

 Security controls for safeguarding customer information;

 Authentication processes necessary to initially verify the identity of new customers and
authenticate existing customers who access e-banking services;
 Liability for unauthorized transactions;
 Losses from fraud if the institution fails to verify the identity of individuals or
businesses applying for new accounts or credit on-line;
 Possible violations of laws or regulations pertaining to consumer privacy, anti-money
laundering, anti-terrorism, or the content, timing, or delivery of required consumer
disclosures; and
 Negative public perception, customer dissatisfaction, and potential liability resulting
from failure to process third-party payments as directed or with in specified time
frames, lack of availability of on-line services, or unauthorized access to confidential
customer information during transmission or storage.


E-banking systems can vary significantly in their configuration depending on a number of

factors. Organizations should choose their e-banking system configuration, including
outsourcing relationships, based on four factors:

Strategic objectives for e-banking;

Scope, scale, and complexity of equipment, systems, and activities;

Technology expertise; and

Security and internal control requirements. Organizations may choose to support their e-
banking services internally. Alternatively, Banks can outsource any aspect of their e-banking
systems to third parties.

The following entities could provide or host (i.e., allow applications to reside on their servers)
e banking-related services for Organizations:

 Another financial institution,

 Internet service provider,
 Internet banking software vendor or processor,
 Core banking vendor or processor,
 Bill payment provider,
 Credit bureau, and
 Credit scoring company.E-banking systems rely on a number of common components
or processes.
The following list includes many of the potential components and processes seen in typical

 Website design and hosting

 Firewall configuration and management
 Intrusion detection system or IDS (network and host-based),
 Network administration
 Security management
 Internet banking server
 E-commerce applications (e.g., bill payment, lending, brokerage)
 Internal network servers
 Core processing system
 Programming support, and
 Automated decision support systems.

These components work together to deliver e-banking services. Each component represents a
control point to consider. Through a combination of internal and outsourced solutions,
management has many alternatives when determining the overall system configuration for the
various components of an e-banking system. However, for the sake of simplicity, this booklet
presents only two basic variations. First, one or more technology service providers can host the
e-banking application and numerous network components as illustrated in the following
diagram. In this configuration, the institution’s service provider hosts the institution’s website,
Internet banking server, firewall, and intrusion detection system. While the institution does not
have to manage the daily administration of these component systems, its management and
board remain responsible for the content,
Second, the organization can host all or a large portion of its e-banking systemsinternally. A
typical configuration for in-house hosted, e-banking services is illustrated below. In this case,
a provider is not between the Internet access and the organizations.
Core processing system. Thus, the organization has day-to-day responsibility for system

E-Banking Support Services

In addition to traditional banking products and services, organizations can provide avariety of
services that have been designed or adapted to support e-commerce. Management should
understand these services and the risks they pose to the organization. This section discusses
some of the most common support services: web linking, account aggregation, electronic
authentication, website hosting, payments for e-commerce, and wireless banking activities.

Web linking

A large number of Organizations maintain sites on the World Wide Web. Some websites are
strictly informational, while others also offer customers the ability to perfamencial transactions,
such as paying bills or transferring funds between accounts.
Virtually every website contains “web links.” A weblink is a word, phrase, or image on a web
page that contains coding that will transport the viewer to a different part of the website or a
completely different website by just clicking the mouse. While weblinks area convenient and
accepted tool in website design, their use can present certain risks .Generally, the primary risk
posed by web linking is that viewers can become confused about whose website they are
viewing and who is responsible for the information, products, and services available through
that website. There are a variety of risk management techniques institutions should consider
using to mitigate these risks. These risk management techniques are for those institutions that
develop and maintain their own websites, as well as institutions that use third-party service
providers for this function. The agencies have issued guidance on web linking that provides
details on risks and risk management techniques financial institutions should consider.

Account Aggregation

Account aggregation is a service that gathers information from many websites, presents that
information to the customer in a consolidated format, and, in some cases, may allow the
customer to initiate activity on the aggregated accounts. The information gathered or
aggregated can range from publicly available information to personal account information
(e.g., credit card, brokerage, and banking data). Aggregation services can improve customer
convenience by avoiding multiple log-ins and providing access to tools that help customers
analyze and manage their various account portfolios. Some aggregators use the customer-
provided user IDs and passwords to sign in as the customer. Once the customer’s account is
accessed, the aggregator copies the personal account information from the website for
representation on the aggregator’s site (i.e., “screens craping”). Other aggregators use direct
data-feed arrangements with website operators or other firms to obtain the customer’s
information. Generally, direct data feeds are thought to provide greater legal protection to the
aggregator than does screen scraping. Organizations are involved in account aggregation both
as aggregators and asaggregation targets. Risk management issues examiners should consider
when reviewing.

Aggregation Services Include

 Protection of customer passwords and user IDs – both those used to access
theinstitution’s aggregation services and those the aggregator uses to retrievecustomer
information from aggregated third parties – to assure the confidentialityof customer
information and to prevent unauthorized activity.
 Disclosure of potential customer liability if customers share their
authenticationinformation (i.e., IDs and passwords) with third parties, and See the
interagency guidance titled “Web linking: Identifying Risks and Risk
ManagementTechniques” issued.
 Assurance of the accuracy and completeness of information retrieved from
theaggregated parties’ sites, including required disclosures. Additional
informationregarding management of risks in aggregation services can be found in

Electronic Authentication

Verifying the identities of customers and authorizing e-banking activities are integral parts of
e-banking financial services. Since traditional paper-based and in-person identityauthentication
methods reduce the speed and efficiency of electronic transactions,financial institutions have
adopted alternative authentication methods, including

 Passwords and personal identification numbers (PINs).

 Digital certificates using a public key infrastructure (PKI).
 Microchip-based devices such as smart cards or other types of tokens.
 Database comparisons (e.g., fraud-screening applications), and
 Biometric identifiers.

The authentication methods listed above vary in the level of security and reliability they
provide and in the cost and complexity of their underlying infrastructures. As such, thechoice
of which technique(s) to use should be commensurate with the risks in the products and services
for which they control access.

Additional information on customer authentication techniques can be found in this booklet

under the heading “AuthenticatingE-Banking Customers.”The Electronic Signatures in Global
and National Commerce (E-Sign) Act establishessome uniform federal rules concerning the
legal status of electronic signatures andrecords in commercial and consumer transactions so as
to provide more legal certaintyand promote the growth of electronic commerce.3 The
development of secure digitalsignatures continues to evolve with some financial institutions
either acting as thecertification authority for digital signatures or providing repository services
for digitalcertificates.
Website Hosting

Some organizations host websites for both themselves as well as for other
businesses.Organizations that host a business customer’s website usually store, or arrange for
thestorage of, the electronic files that make up the website. These files are stored on one or
more servers that may be located on the hosting financial institution’s premises.
Websitehosting services require strong skills in networking, security, and programming.
Thetechnology and software change rapidly. Institutions developing websites should monitor
the need to adopt new interoperability standards and protocols such as Extensible Mark-Up
Language (XML) to facilitate data exchange among the diverse population of Internet users.

Payment for E-commerce

Many businesses accept various forms of electronic payments for their products andservices.
Financial institutions play an important role in electronic payment systems bycreating and
distributing a variety of electronic payment instruments, accepting a similar variety of
instruments, processing those payments, and participating in clearing andsettlement systems.
However, increasingly, financial institutions are competing withthird parties to provide support
services for e-commerce payment systems. Among theelectronic payments mechanisms that
financial institutions provide for e-commerce areautomated clearing house (ACH) debits and
credits through the Internet, electronic bill payment and presentment, electronic checks, e-mail
money, and electronic credit card payments. Additional information on payments systems can
be found in other sections of the IT Handbook.Most organisations permit intrabank transfers
between a customer’s accounts as part of their basic transactional e-banking services. However,
third-party transfers – with their heightened risk for fraud – often require additional security
safeguards in the form of additional authentication and payment confirmation.

Bill Payment and Presentment

Bill payment services permit customers to electronically instruct their financial institutionto
transfer funds to a business’s account at some future specified date. Customers canmake
payments on a one-time or recurring basis, with fees typically assessed as a “per item” or
monthly charge. In response to the customer’s electronic payment instructions,the financial
institution (or its bill payment provider) generates an electronic transaction – usually an
automated clearinghouse (ACH) credit – or mails a paper check to the businesson the
customer’s behalf. To allow for the possibility of a paper-based transfer, financialinstitutions
typically advise customers to make payments effective 3–7 days before the bill’s due
date.Internet-based cash management is the commercial version of retail bill payment.Business
customers use the system to initiate third-party payments or to transfer money between
company accounts. Cash management services also include minimum balancemaintenance,
recurring transfers between accounts and on-line account reconciliation.Businesses typically
require stronger controls, including the ability to administer securityand transaction controls
among several users within the businessHere we discusses the front-end controls related to the
initiation, storage, andtransmission of bill payment transactions prior to their entry into the
industry’s retail payment systems (e.g., ACH, check processing, etc.). The extent of front-end
operatingcontrols directly under the financial institution’s control varies with the
systemconfiguration. Some examples of typical configurations are listed below in order of
increasing complexity, along with potential control considerations.

Rakesh H M & Ramya T J (2014)

In their research paper titled “A Study on Factors Influencing Consumer Adoption

of Internet Banking in India” tried to examine the factors that influence internet banking
adoption. Using PLS, a model is successfully proved and it is found that internet banking is
influenced by its perceived reliability, Perceived ease of use and Perceived usefulness. In the
marketing process of internet banking services marketing expert should emphasize these
benefits its adoption provides and awareness can also be improved to attract consumers’
attention to internet banking services.

Amruth Raj Nippatlapalli (2013)

In his research paper “A Study on Customer Satisfaction of Commercial Banks:

Case Study on State Bank of India”. This paper present Customer satisfaction, a term frequently
used in marketing, is a measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as "the number of customers,
or percentage of total customers, whose reported experience with a firm, its products, or its
services (ratings) exceeds specified satisfaction goals."Banking in India originated in the last
decades of the 18th century. The first banks were The General Bank of India, NOW which
started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest
bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta
in June 1806, which almost immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three
of which were established under charters from the British East India Company. For many years
the Presidency banks acted as quasi-central banks, as did their successors. The three banks
merged in 1921 to form the Imperial Bank of India.

Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013)

In their research paper “Comparative Study of Customer Satisfaction in Public

Sector and Private Sector Banks in India”. This paper gives with the introduction of
liberalization policy and RBI's easy norms several private and foreign banks have entered in
Indian banking sector which has given birth to cut throat competition amongst banks for
acquiring large customer base and market share. Banks have to deal with many customers and
render various types of services to its customers and if the customers are not satisfied with the
services provided by the banks then they will defect which will impact economy as a whole
since banking system plays an important role in the economy of a country, also it is very costly
and difficult to recover a dissatisfied customer. Since the competition has grown manifold in
the recent times it has become a herculean task for organizations to build loyalty, the reason
being that the customer of today is spoilt for choice. It has become imperative for both public
and private sector banks to perform to the best of their abilities to retain their customers by
catering to their explicit as well as implicit needs. Many a times it happens that the banks fail
to satisfy their customer which can cause huge losses for banks and there the need of this study
arises. The purpose of this research article is to examine the customer satisfaction among group
of customer towards the public sector& private sector banking industries in India. Study is
cross-sectional and descriptive in nature.

Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013)

In their research titled on “Private Sector Banks Service Quality and Customer
Satisfaction” A Empirical Study two Private Sector Banks”. This research paper is an effort to
examine the relationship between service quality and customer satisfaction of two private
sectors bank of India. Service quality has been described as a form of attitude that results from
the comparison of prospect with recital (Cronin and Taylor, 1992, Parasuraman et al, 1985).
Gronroos 1982) argued that customers, while evaluating the quality of service, compare the
service they expect with perceptions of the services they actually receive. Since financial
products offered by various banks are similar by nature then why any particular bank of product
of any bank is preferred than others a matter of interest for academician as well as banking
industry. They may be difference between customers of public and private sector banks, but
why are two banks of one sector being preferred differently by customers. This research study
is an effort to find out the answer of these questions.

Vijay M. Kumbhar (2011) In his research paper “Factors Affecting the Customer satisfaction
In E-Banking: Some evidences Form Indian Banks”. This study evaluates major factors (i.e.
service quality, brand perception and perceived value) affecting on customers’ satisfaction in
e-banking service settings. This study also evaluates influence of service quality on brand
perception, perceived value and satisfaction in e-banking. Required data was collected

Pooja Malhotra & Balwinder singh (2009)

In their research paper “The Impact of Internet Banking on Bank Performance and
Risk: The Indian Experience”. The paper describes the current state of Internet banking in India
and discusses its implications for the Indian banking industry. Particularly, it seeks to examine
the impact of Internet banking on banks’ performance and risk. Using information drawn from
the survey of 85 scheduled commercial bank’s websites, during the period of June 2007, the
results show that nearly 57 percent of the Indian commercial banks are providing transactional
Internet banking services. The univariate analysis indicates that Internet banks are larger banks
and have efficiency ratios and profitability as compared to non-Internet banks. Internet banks
rely more heavily on core deposits for funding than non-Internet banks do. However, the
multiple regression results reveal that the profitability and offering of Internet banking does
not have any significant association, on the other hand, Internet banking has a significant and
negative association with risk profile of the banks.

Shaza W. Ezzi (April 2014)

In their research paper titled “A Theoretical Model for Internet Banking: Beyond
Perceived Usefulness and Ease of Use” tried to inquired different types of electronic banking
like ATM’s, telephone banking, and electronic funds transfer, Internet banking like has evolved
from consumers’ needs to have superior access to banking services clear of most banks teller-
staffed, normal operating hours. Additionally, Internet banking has grown swiftly from the
recent and the span increases in ecommerce. Internet banking (IB) continues to govern the
landscape of electronic banking as consumers continue to use IB to complete schedule banking
transactions in addition to conducting on-line sales and purchasing. This study presents a
theoretical model considered to help researchers and practitioners better understand the
acceptance and adoption of Internet Banking. The proposed model maybe particularly useful
in developing nations where consumers are loath to use Internet Banking even when the
services are available. However, a review of several studies that have investigated consumers’
acceptance of Internet banking services from a multiplicity of perspectives have not reached a
clear consensus of the factors that contribute to overall consumer acceptance and adoption. The
paper concludes with discussions of the managerial implications and avenues for future

kartikeya bolar (2014)

In their research paper “End-user Acceptance of Technology Interface In

Transaction Based Environment “This paper presents Creators and investors of technology
need information about the customers’ assessment of their technology interface based on the
features and various quality dimensions to make strategic decisions in improving technology
interfaces and compete on various quality dimensions. The research study identifies the
technology interface dimensions as perceived by the end-users in a transaction based
environment (viz. Internet banking) in India, using exploratory factor analys.
Primary Data:

In this research with a sample size of nearly 20 customer’s data will be available in form of
questionnaire collected in terms of different questions influencing the use of internet banking.
Internet banking is considered as dependent on awareness among customers which will be
studied with help of different independent variable. Only the customers of HDFC & ICICI
bankers taken as samples for study.

Secondary data:

Collection of information from different kind of books the data of the company what they


Once the findings are finalized by a research, suggestions should be made for the betterment
of enterprise. The data collected from questionnaire will be tabulated analyzed so that the result
can be presented as simple as possible. There are a number of ways like

 Pie-chart
 Graphs


 To know the customers perception toward the E-banking service.

 I am interested in E-BANKING that I am taken this topic.


 Organizing Educational Campaign to Create Goodwill Of Company.

 Services It Effectively valuable to Create Place in the Minds of Customer.
 Availability should be increased by using various services Strategy.

Company should make service equal to or better than Competitive Brands By All Means.

 Find the customer satisfaction relating to E-banking service.

 To study the awareness of internet banking among the customer of ICICI and HDFC


 Banks are not giving me all information about e- banking services.

 They do not permit to meet any employees in their banks.


ICICI Bank is India's largest private sector bank with total assets of Rs. 5,367.95 billion (US$
99 billion) at March 31, 2014 and profit after tax Rs. 83.25 billion (US$ 1,533 million) for the
year ended March 31, 2014. The Bank has a network of 3,514 branches and 11,063 ATMs in
India, and has a presence in 19 countries, including India.

ICICI Bank offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialized subsidiaries
in the areas of investment banking, life and non-life insurance, venture capital and asset

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in
United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International
Finance Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in
Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).


ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited
in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to
institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative
of the World Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for providing medium-
term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of products
and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking,
the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with
ICICI Bank would be the optimal strategic alternative for both entities, and would create the
optimal legal structure for the ICICI group's universal banking strategy. The merger would
enhance value for ICICI shareholders through the merged entity's access to low-cost deposits,
greater opportunities for earning fee-based income and the ability to participate in the payments
system and provide transaction-banking services. The merger would enhance value for ICICI
Bank shareholders through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry into new business
segments, higher market share in various business segments, particularly fee-based services,
and access to the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing
and banking operations, both wholesale and retail, have been integrated in a single entity.

 Awards-2014Ms. Chandra Kochhar, MD and CEO has been awarded as the Best CEO
- Private Sector category at the Forbes India Leadership Awards 2014
 Ms. Chandra Kochhar, MD & CEO, has been named as the most powerful woman in
business in India for the third consecutive year in Fortune's list of '50 Most Powerful Women
In Business: The Global 50'. She is also among the four most powerful women in business
in the world, according to the list.
 ICICI Bank received the award for 'Best Private Sector Banker' by the Sunday Standard
Best Bankers Awards 2014.
 ICICI Bank has been awarded the 'Best Banker - All round expansion' by the Sunday
Standard Best Bankers Awards 2014.
 ICICI Bank won 'Best Banker - Efficiency & Profitability' by the Sunday Standard Best
Bankers Awards 2014.
 Mr. KV Kamath, Chairman, receives the "AIMA Managing India" Award for
"Outstanding Institution Builder"
 Ms. Chandra Kochhar, MD & CEO, receives the "AIMA JRD Tata Corporate
Leadership Award" 2013
 ICICI Bank has won the Trade Finance Magazine Award for Excellence 2014, under
the category of 'Asia Pacific Awards : Best Trade Bank in India'
 ICICI Bank received the Asian Banking & Finance Wholesale Banking Awards 2014
for the India Domestic Trade Finance Bank of the Year
 ICICI Bank Limited has been awarded as the Best Private Sector Bank under the
category Global Business Development for the Dun & Bradstreet - Polaris Financial
Technology Banking Awards 2014
 ICICI Bank has been one of the recipients of the Corporate Governance Asia Annual
Recognition Awards 2014
 Ms. Chandra Kochhar, MD & CEO, is one of the recipients from India, for the 4th
Asian Corporate Director Recognition Awards 2014
 ICICI Bank has won the Best Bank Award for Use of IT for Business Innovation
Among Large Banks from the Institute for Development and Research in Banking
Technology (IDRBT)
 ICICI Bank has received the Special Award for Best IT Team Among Private Sector
Banks from the Institute for Development and Research in Banking Technology (IDRBT)
 ICICI Bank won the Special Award for Electronic Payment Systems Among Large
Banks from the Institute for Development and Research in Banking Technology (IDRBT)
 ICICI Bank received Special Award for Mobile Banking Among Large Banks from the
Institute for Development and Research in Banking Technology (IDRBT)
 ICICI Bank ranks 10th in Fortune India's list of 50 most admired companies in India.
 Ms. Chanda Kochhar, MD & CEO, has been ranked as the most powerful business
woman in India in the Forbes' list of 'The World's 100 Most Powerful Women 2014'
 ICICI Bank Limited has been conferred the Best Remittance Business award at The
Asian Banker's International Excellence in Retail Financial Services 2014 Awards
 ICICI Bank was honored with the Medici Innovation Hall of Fame Award, instituted
by The Medici Institute in collaboration with the Medici Group, USA.
 ICICI Bank and its IT partner Fundtech won The Asian Banker Technology
Implementation Award for the Convergence Banking project from Asian Banker.
 Ms. Chanda Kochhar received the 'Transformation Leader Award' by NDTV Profit
Business Leadership Awards 2013.
 For the second consecutive year, Mr. N.S. Kannan, Executive Director & CFO,
received the "Best Performing CFO", in the Banking / Financial Services category by CNBC
- TV 18.
 For the third year in a row, Ms. Chanda Kochhar, Managing Director & CEO, is in the
Power List 2014 of 25 most powerful women in India, by India Today.
 Ms. Chanda Kochhar is the only Indian to be featured in the Dow Jones list of Most
Influential Female Executives in the World of the last decade. She is ranked 12th in the
global list.
 ICICI Bank awarded the Most Admired Infrastructure Debt Financer and PPP Project
of the Year: Yamuna Expressway Project, in the 5th KPMG Infrastructure Today Awards
by ASAPP Media Information Group, publishers of Infrastructure Today in association with
 For the 4th consecutive year, ICICI Bank won the Celentano Model Bank for the next
generation technology oriented banking solutions.
 ICICI Bank was awarded a "Special IT Innovation Award" by Lenovo - NASSCOM
and CNBC-TV18.
 ICICI Bank was the winner of "6th Loyalty Awards" for My Savings Rewards by
AIMIA (global leader in Loyalty).
 ICICI Bank UK PLC's online savings product Hi SAVE won the "Highly Commended"
(2nd rank) at the Consumer Moneyfacts Awards.
 ICICI Bank received the "Gram samvad” Service for Low cost/Small budget marketing
initiative Award by Rural Marketing Association of India (RMAI).
 Ms. Chanda Kochhar awarded the Businessperson Of The Year 2013 by Business India.
She is the first woman recipient of this award in 31 years.
 ICICI Bank won the Best domestic bank, India by The Asset Triple A Country Awards.

 ICICI Bank received the Golden Peacock Innovative Product / Service Award for its
Tab Banking project. The Golden Peacock Awards were instituted by the Institute of
Directors and was headed by Justice P N Bhagwati, Ex Chief Justice of India.
 ICICI Bank received the "Dataquest Technology Innovation Awards 2013" for Data
center migration by Dataquest.
 ICICI Bank was conferred the Best Performance Award for Self Help Group (SHG)
Bank Linkage program in NABARD's State Level Awards announced by their Maharashtra
Regional Office. The Bank received the first prize for the year 2011-11 in the Private Sector
Bank category and 2nd runner up for the year 2012-12 in the Commercial Bank category.
 For the second consecutive year, ICICI Bank won the NPCI's NFS Operational
Excellence Awards in the MNC and Private Sector Banks Category for its ATM network.
 Mr. K.V. Kamath was awarded the "Hall Of Fame" by Outlook Money for his long
standing contribution in the financial services sector.
 ICICI Bank won the Best Bank - India Award by The Banker.
 Ms. Chanda Kochhar ranked 18th in the Fortune's list of '2013 Businesspersons of the
Year'. The 50 global leaders is Fortune's annual ranking of leaders who are "the best in
 Ms. Chanda Kochhar tops the list of "50 Most Powerful Women in Business" by
Fortune India.
 ICICI Bank tops the list of "Private sector and Foreign Banks" by Brand Equity, Most
Trusted Brands 2013. It ranks 15th in the "Top Service 50 Brands".
 For the third consecutive year, ICICI Bank ranked second in "India's 50 Biggest
Financial Companies" in The BW Real 500 by Business world.
 For the second year in a row, Ms. Chandra Kochhar, Managing Director & CEO was
ranked 5th in the International list of 50 Most Powerful Women In Business by Fortune.
 ICICI Bank tops the list of most fans in India and globally ranks fifth amongst financial
institutions on Facebook in the social media engagement study conducted by Ketchum Sam
 ICICI Bank in the Private Sector Bank category won the Best Technology Bank Of The
Year ,Best Financial Inclusion Initiative and Best Use Of Technology In Training and e-
Learning by Indian Bank's Association (IBA) Technology Awards. The Bank also received
the first runner up for Best Online Bank, Best Customer Relationship Initiative and Best Use
Of Mobility Technology in Banking by IBA Technology Awards .
 ICICI Bank awarded the Best SME Bank for Treasury and Working Capital (India) by
The Asset Triple A.
 ICICI Bank received the Best Trade Finance House and Best Cash Management House
by The Corporate Treasurer Alliance Country Awards.
 ICICI Bank awarded the Best Private Sector Bank in Global Business Development,
Rural Reach and SME financing categories by Dun & Bradstreet - Polaris Financial
Technology Banking Awards.
 Ms. Chanda Kochhar, Managing Director and CEO, was ranked 59th in the World's
100 Most Powerful Women by Forbes magazine.
 For the fifth year in a row, ICICI Bank was awarded the "Best Foreign Exchange Bank
(India)" by Finance Asia Country Awards. The Bank also received the "Best Bond House
 Ms. Chanda Kochhar awarded the 3rd Asian Corporate Director Recognition Award
2013 by Corporate Governance Asia.
 ICICI Bank awarded the Best Trade Finance bank in India by GTR Asia Leaders in
Trade Awards 2013.
 Ms. Chanda Kochhar, Managing Director & CEO, ranked 5th in the list of "Most
Powerful CEOs", in the corporate India's definitive power listing, by The Economic Times
Corporate Dossier. She also tops the list of "Top Women CEOs", in the country.
 ICICI Bank featured as the top Indian brand to be listed in the annual Brandz's Top 100
Most Valuable Global Brands study.
 ICICI Bank won the "Best Bond House (India) 2012", by IFR Asia
 ICICI Bank awarded the Best Bank (India) by Global Finance
 ICICI Bank won the "Century International Quality Era Award" at Geneva. The award
recognizes commitment towards Quality, Excellence, Customer Satisfaction, Leadership
and Strategic Planning as established in the QC 100 model of Total Quality Management
 For the second year in a row, Ms. Chanda Kochhar, Managing Director & CEO, is in
the Power List 2013 of 25 most influential women professional in India, by India Today.
 Ms. Chanda Kochhar, Managing Director & CEO, is amongst the nine Indian women
to be named in the Forbes magazine's inaugural 'Asia Power Businesswomen list'
 Mr. N.S. Kannan, Executive Director & CFO, received the "Best CFO", in the Banking
/ Financial Services category by CNBC - TV 18.
 ICICI Bank was recognized for the first Credit Default Swap (CDS) deal in India at the
fimmda annual conference in Kuala Lumpur.
 Ms. Chanda Kochhar, Managing Director & CEO was awarded the "CNBC Asia India
Business Leader Of The Year Award". She also received the "CNBC Asia's CSR Award

Board Members

Mr. K. V. Kamath, Chairman

Dr. Swati Piramal
Mr. Homi R. Khusor khan
Mr. Dileep Choksi
Mr. Arvind Kumar
Mr. M.S. Ramachandran
Dr. Tushar Shah

Managing Director & CEO

Executive Director
Executive Director

Executive Director


Performance Review – Quarter ended September 30, 2014

• 20% year-on-year increase in standalone profit after tax to 2,352 crore (US$ 376 million) for
the quarter ended September 30, 2014 (Q2-2014) after fully recognizing market-market
provisions on investment portfolio

• Current & savings account (CASA) deposits increased by ` 8,073 crore (US$ 1.29 billion) in
Q2-2014; year-on-year growth of 17% in CASA deposits

• CASA ratio maintained at 43.3% at September 30, 2014

• Net interest margin (NIM) increased to 3.31% in Q2-2014 compared to 3.00% in Q2-2014;
domestic NIM at 3.65%

• Total capital adequacy of 16.50% and Tier-1 capital adequacy of 11.33% as per Reserve Bank
of India’s guidelines on Basel III norms (17.21% and 12.04% including profits for half year
ended September 30,



YES 65%

NO 35%





30% Series1



yes no


Based on above table most of the people are using Electronic Banking related matters, Because
all banks are provided to customers various facilities like E-Fund transfer, E-Movie Ticketing,
E-Cheques etc. So above table based on 65% of people are using these type of facilities by
provided by any National and International bank and various private sectors banks. Remaining
people are don’t have aware of using these techniques because they are uncivilized people.




SBI 30%

SBH 20%

AXIS 10%


HDFC 12%





15% Series1





Based on above table most of the people are using Electronic Banking related matters, Because
all banks are provided to customers various facilities like E-Fund transfer, E-Movie Ticketing,
E-Cheques etc. So above table based on 35% (High) of have preferred in SBI and remaining
have 8% union Banks ( Low).



YES 60%

NO 40%



Mostof thepeople are paying all bills through Internet through using various banking
segments. Based on above table most of the people are using Electronic Banking related
matters, Because all banks are provided to customers various facilities like E-Fund transfer, E-
Movie Ticketing, E-Cheques etc. So above table based on 65% of people are using these type
of facilities by provided by any National and International bank and various private sectors
banks. Remaining people are don’t have aware of using these techniques because they are
uncivilized people.



YES 70%

NO 30%

80% 70%


40% 30% Series1


Most of the people using Online Shopping Cards through Various banking segments. These
these type of cards because all banks are provided to customers various facilities like E-Fund
transfer, E-Movie Ticketing, E-Cheques etc. So above table based on 65% of people are using
these type of facilities by provided by any National and International bank and various private
sectors banks. Remaining people are don’t have aware of using these techniques because they
are uncivilized people.



YES 35%

NO 65%
70% 65%
40% 35%
30% Series1



Most of the people not using online fund transfer through Various banking segments. These
type of cards because all banks are provided to customers various facilities like E-Fund transfer,
E-Movie Ticketing, E-Cheques etc. So above table based on 35% of people are using these
type of facilities by provided by any National and International bank and various private sectors
banks. Remaining people are don’t have aware of using these techniques because they are
uncivilized people.



YES 65%

NO 35%




Most of the customers satisfied by the online banking because time saving and easy process.

According to the survey 65% of the customers satisfied by the online banking .remaing 35%
people have do not know the facilities of the online services.







30 25 25




According to the survey of banking industry cheque services used by the customers is 50%,
cash 25% and E-Banking 25%.


ABOVE RS 10 21

BETWEEN RS 5-10 11











According to ICICI bank survey online bill payment used y the customers in various
percentages. Below Rs 5 is used in high percentage according to the users.

1. In the users ratio of internet banking 65% of customers are using this service.

2. More banks are connecting to the any software co. torunning the E-banking service. In these
services the SBI banks is top in service of E-banking.

3. The services that are mostly used by maximum customers are transactions, online trading,
bill payment, shopping etc.
4. The mode of the cash deposit in bank is for use to online truncation cash, cheque & e-

5. Different banks different charge for online service.

1. To prevent online banking from remaining customers to prompt this service through
advertising co.

2. After repairing this basic deficiency, banks must ensure that their services are competitive.

3. Banks is not take more charge from the customers.

The basic objective of my research was to analyze the awareness among customers for internet
banking in INDIA. It gives direction to research tools, research types and techniques. Although
the findings reveal that people know about the services but still many people are unaware and
many of them are non – users so the bank should by promotion try to retain the customers.
Banks should look forward to have some tie – ups with other financial institutions to increase
the service base.

•E-banking in India

•Banking service operation (ICFAI)

•Indian Banking

•Money & Banking

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