12 - Chapter 3 PDF

Reach of E-Banking in Rural India-A Study with Special Reference to Central Gujarat Region
CHAPTER - III
INTRODUCTION TO E-BANKING SERVICES
[Study of various e-products and new technology innovations made by

banks and its impact on their performances is presented in Chapter-III.]
3.1 Introduction
3.2 Models of E- Banking
3.3 Electronic Delivery Channels
3.4 Technology Enabled Initiatives of Banks in India
3.5 Security Issues in E-Banking
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CHAPTER - III
INTRODUCTION TO E-BANKING SERVICES
3.1 Introduction:
Banking industry has reached a stage where time and quality both
have become a quintessential for surviving in the competition.
Traditional banking was limited and required to only collecting
deposits and lending need based credit. It is impossible to stay on
with such an ideology as the banks now function as universal banks,
that is ‘One-stop Shop’ for all financial planning requirements. The
width and the depth of the service matter in a significant manner to
deliver these expectations. Hence, it is inevitable for the banks to
stay away from technology enabled delivery channels and that is
where the E-Banking Services come into picture. Almost all the
banks in India, big or small, have adopted e-banking but the level of
preparedness and adoption is at different stages. The following
diagram Figure No.11 depicts the 3 pillars of E-Readiness: Access,
which accounts for the infrastructure and support services for
success of e-delivery; Capacity, which talks of the Social, economic
and political preparedness of country and industry to accept these
services; Opportunities, describes the scope of activities that may be
covered in this ambit.
1
Cracknell, David, Electronic Banking for the Poor: Panacea, Potentials & Pitfall,
Report by MicroSave-Market-Led Solutions for Financial Services, Kenya, Page11,
September, 2004
55
Figure No. 3.1 Model on E-Readiness:
Source: Adopted from Cracknell, (2004), Table2, Page11
In the April, 2010 Monetary Policy Statement, the working Group on

Information Security, E-Banking, Technology, Risk Management &
Cyber Frauds was constituted under the Chairmanship of Shri
G.Gopalkrishna, Ex. Director, RBI. It examined the various issues
arising out of the use of IT in Banks & made its recommendations in
nine broad Areas:
1) IT Governance
2) Information Security (IS)
3) IS Audit
4) IT Operations
5) IT Services Outsourcing
6) Cyber Fraud
7) Business Community Planning
8) Customer Awareness Programme
9) Legal Aspects.
The report was placed on RBI website on January 21, 2011.

Subsequently, on February, 2011 views & / or Comments of all
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Stakeholders & public at large on the Report were invited. Based on

them- final guidelines are issued for implementation.
Table No. 3.1: Indicators of Financial Access and Depth, India

Compared with Select Asian peer group and OECD countries
Source: Report on Trend and Progress of Banking in India 2009-10
From the above table it can be clearly learnt that the figures for
number of branches per 1,00,000 of population is not very poor for
India, it is around 6.3 below only Malaysia and Thailand among the
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Asian peers. The OECD countries are of course way ahead ranging
from 23 to 45 branches. But if one looks in to the figures of Number
of ATMs for the same population it is only 1.63 where as its China
and Indonesia, which had less than half of the figure of branches,
have got much higher figures of 3.8 and 4.84. Whereas Malaysia and
Thailand who had got comparable figures for branch statistics are
way too ahead in the Number of ATMs 16.44 and 17.25. this shows
the policy discrepancy in Indian banking. The encouragement
received to branch banking is quite high as compared to the focus
on e-banking delivery channels.
3.2 Models of E- Banking:

To implement effectively E-banking and augment the level of
technology the following models2 have been suggested:
(i) Complete Centralized Solution (CCS)
(ii) Cluster Approach
(iii) High Tech Bank within Bank
(i) Complete Centralized Solution :
This is an ideal branch network model on which E-banking

activities can be implemented uniformly and efficiently.
Under the model, the bank has to provide web-server and the
requisite software which is connected to the main server.
Once the required hardware and software are set in, the
customers can access the web-server for their basic banking
operations using any standard browser at any location.
2
Gordan,E, Natrajan, K, (2008), Banking Theory, Law & Practice, Himalaya
Publishing House Pvt. Ltd., pg. 455-456
58
(ii) Cluster Approach:
Under this model, computerized branches of each city are

connected with Regional Processor located at each such city
which then are connected through reliable media to a
centralized High end server. Under this approach, it is
necessary that an integrated computerization is available at
all branches so that connectivity amongst various branches
can be established through Regional clusters. Most of the
branches are computerized in an integrated way through
Network/ Unix Server.
(iii) High Tech Bank within Bank:
Under this model, complete computerization of all branches is

avoided. Within each bank, two different types of banks
would function concurrently, viz., High Tech Bank providing
E-Banking facilities through select branches and traditional
bank offering traditional services through other branches.
This approach enables the banks to play a balanced role to
offer state of art service to ever demanding customers of
major cities and simultaneously continue to offer traditional
personalized service to the mass customers who still
dominate the banking scene.
3.3 Electronic Delivery Channels:
Banking activities through the traditional delivery channel of branch

networks are on the decline and customers can now do banking
business from the comfortable confines of their homes using most
modern electronic delivery channels. Banks are able to the deliver
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their products more cheaply than the traditional branch networks

loaded with expensive staff. The Information Technology has
enabled banks to increase the range of their products also and
market them more effectively.
The popular electronic delivery channels are the following:

(i) ATMs
(ii) Smart Cards/ Credit Cards
(iii) Tele Banking/ Mobile Banking
(iv) Internet Banking
(i) ATMs:
ATMs have become the order of the day in banking. Though

they were evolved as novel cash dispensers, now they have
emerged as a marketing tool to target the masses. There are
about 9500 off-site and on-site ATMs of many banks are
nothing but virtual branches, as customers can conduct any
transactions, through the touch screens. They are user
friendly and they have mass acceptability. They can
effectively reach out a large customer base at a low cost. At
present, banks have started outsourcing and sharing of ATM
services to reduce cost. Most banks are used to cross-sell
other products also so as to meet the varied requirements of
customers. Banks have started dispensing Railway tickets,
Air tickets, Movie tickets etc. through ATMs. Voice activated
ATMs, ATMs with finger print scanning technology etc. are on
the move. If they become operative they can save the
customers from the hassles of carrying a card. In future, a
bank’s ATM would function like a kiosk delivering more on
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non-cash transactions, thereby reducing fixed and operating

costs.
(ii) Smart Cards/ Credit Cards:
The smart card technology is also widely used by bankers to

market their products. Smart Card, which is a chip-based
card, is a kind of an electronic purse. Embedded in the smart
card is a microchip which will store a monetary value. When a
transaction is made using the card, the value is debited and
the balance comes down automatically. Once the monetary
value comes down to nil, the balance is to be restored all over
again so that the cards because card related frauds and
crimes cannot take place in a smart card. It provides
communication security as it verifies whether the signature is
genuine or not. The card also recognizes different voices and
compares with the recorded original voice. It is used for
making purchases without the necessity of requiring the
authorization of Personal Identification Number as in a debit
card. It does away with all problems associated with the
traditional currency.
In fact, a smart card is a truly powerful token which carries
out all the functions of magnetic stripe cards like ATM Card,
credit and debit card etc.
(iii) Tele-Banking/ Mobile Banking:

Tele-banking is increasingly used as a delivery channel for
marketing banking services. A customer can do entire non-
cash related banking over the phone anywhere and at
anytime. Automatic Voice Recorder (AVR) or ID numbers are
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used for rendering Tele-Banking services which have added

convenience to customers.
(iv) Internet Banking:
Internet has enabled banking at the click of a mouse. Internet

banking is all poised to emerge as the most profound
electronic channel in the near future. Internet banking
reduces banks operating expenses mainly due to savings on
prohibitive estate costs and expensive staff salary. It is
estimated that the cost per transaction in internet banking
will be only one-tenth of regular branch transactions.
Internet banking is a platform for electronic delivery of

banking services to the customers. In internet banking,
customer of a bank with a PC and a browser, can have
accounts to his bank’s website, and thereafter perform
various banking functions. Thus, he can avail of the bank’s
services from anywhere and at any time.
With the drastic fall in cell phone tariff and emergence of

seamless connectivity between fixed and mobile lines, tele-
banking or mobile banking is set to emerge as one of the cost
effective delivery channels in the near future. The toll-free
number would also gain popularity as an important delivery
channel. Successful adoption of wireless technology would
help banks to offer not only any time, anywhere banking but
also any device banking.
Real-Time Gross Settlement (RTGS):

The RTGS is a new system of payments evolved is the Indian banking
environment. Its main objective is to enable online clearing and settlement
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of payments on a real-time basis across banks in different cities. The RTGS

is an upgraded technology aimed at reducing dependence on payments
through cheques. It is radically different from the present day paper-based
clearing system. It not only permits net settlements between banks but
also eliminates systematic risk due to advanced technological innovations.
Under RTGS system payment are cleared singly and bilaterally as they
occur. When a payment message is moved through the clearing house, the
paying bank’s account with the RBI is simultaneously debited and credited
in the receiving bank’s account. There are no end-of-day procedures as in
the case of paper-based clearing system. There is a certainty of payment
and the receiving bank can credit the beneficiary’s account immediately
and allow full use of funds.
Table 3.2 Bank Group-wise Number of Transactions in RTGS and

NEFT
(Number of transactions in million)
Source: Report on Trend and Progress of Banking in India 2009-10,

pg.90
Figure 3.2 Volume of transactions under RTGS and NEFT systems
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pg.90
Making E-banking reach every corner of the society and getting it accepted
by the customers has been a challenging task for the banks & the
authorities.
3.4 Technology Enabled Initiatives of Banks in India:
The road-map for e-banking implementation has been effectively

drawn by the banking authorities and accordingly the banks in India
have tried to initiate the technology-enabled delivery of services.
The first step towards it was computerization of the banks. Table
no. 3.3 gives an idea about
Table No.3.3 Computerisation of Public Sector Banks

pg.88
The evolution of e-banking started from the use of Automatic Teller

Machines (ATMs) and telephone banking (tele-banking), direct bill
payment, electronic fund transfer and the revolutionary online
banking. The future of electronic banking would be more interactive
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i.e., TV banking. It has been forecasted that among all categories,

online banking is the future of electronic financial transactions. Six
major banks from the Indian banking industry, 3 from public sector
and 3 from the private were selected for a secondary study to
analyse the e-banking services offered by them. The findings are
stated below.
3.4.1 SBI Bank:
ATM & Debit Cards

State Bank offers you the convenience of over 26,000 ATMs in India, the
largest network in the country and continuing to expand fast. This means
that you can transact free of cost at the ATMs of State Bank Group (This
includes the ATMs of State Bank of India as well as the Associate Banks -
namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Mysore, State Bank of Patiala,and State Bank of Travancore) and
wholly owned subsidiary viz. SBI Commercial and International Bank Ltd.,
using the State Bank ATM-cum-Debit (Cash Plus) card.
Types of Cards:
Besides all cards of State Bank of India, State Bank ATM-Cum-Debit Card
and State Bank International ATM-Cum-Debit Cards following cards are
also accepted at State Bank ATMs:
1) State Bank Credit Card.
2) Cards issued by other banks displaying Maestro, Master Card,
Cirrus, VISA and VISA Electron logos.
3) All Debit/ Credit Cards issued by any bank outside India displaying
Maestro, Master Card, Cirrus, VISA and VISA Electron logos.
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Phone/Mobile Banking:
The service is available on all phones (java/non java) with/without GPRS

connection. No need to download the application. Ordinary SMS charges
are applicable.
The following functionalities are available:
• Enquiry Services (Balance Enquiry/Mini Statement)

• Mobile Top up
• DTH Top up/ recharge
• IMPS- Mobile to Mobile Transfer
• Change MPIN
Business Rules:
• All Current/ Savings Bank Account holders in P segment are

eligible.
• Transaction limit per customer per day is Rs.1,000/- with a
calendar month limit of Rs.5,000/-
• All customers can avail the Service irrespective of telecom service
provider.
• The Service is free of charge. SMS cost will be borne by the
customer.
• As a matter of abundant precaution, Customers are requested to
delete all the messages sent for communication, once the response
for their request has been received.
Internet Banking:
Using Internet banking services, you can do the following normal

banking transactions online:
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Funds transfer between own accounts.

Third party transfers to accounts maintained at any
branch of SBI
Group Transfers to accounts in State Bank Group
Inter Bank Transfers to accounts with other Banks
Online standing instructions for periodical transfer for the
above
Credit PPF accounts across branches
Request for Issue of Demand Draft
Request for opening of new accounts
Request for closure of Loan Accounts
Request for Issue of Cheque Book
Apart from these, the other salient value-added features available

are:
Utility bill payments

Online Ticket Booking for travel by Road, Rail and Air
SBILIFE, LIC and other insurance premia payments
SBI and other Mutual funds Investments
SBI and other Credit Card dues payments
Tax Payment – Income, Service, State Government
Customs Duty Payment
Online Share Trading (eZ-trade@SBI)
Online Application for IPO
Fee Payment to select educational institutions including IITs and
NITs
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Apart from these, the other salient value-added features available

are:
All SBI branches are enabled for Internet Banking. One can contact
the branch for availing this service. On security front, the site is
'VeriSign' certified - indicating that it's absolutely safe and secure
for you to transact online. Additional layers of security are available
for doing transactions.
3.4.2 Corporation Bank:
ATM & Debit Cards:

The ATM cards/debit cards, credit cards and prepaid cards (that permit
cash withdrawal) can be used at Corporation Bank ATMs for various
transactions. Corporation Bank has tie up arrangement with VISA,
MasterCard, Cash Net, NFS (National Financial Switch), State Bank of India,
Karnataka Bank, ING Vysya Bank, Dena Bank and Bank of Rajasthan cash
withdrawal and Balance Enquiry facility is available to all cardholders.
In addition, Corporation Bank cardholders when transacting in CorpBank

ATMs can avail of following services/facilities:
Mini Statement
Funds Transfer between Own Accounts
NEFT-National Electronic Funds Transfer
Prepaid Mobile Recharge Facility
LIC Premium Payment
Direct Tax (select taxes) Payment through ATMs
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The cards issued by banks in India should be enabled for use at any bank
ATM within India. Currently Corporation Bank cardholders transacting in
Corporation Bank ATMs can withdraw Rs. 25,000 per day subject to per
transaction limit of Rs.15,000 for balance in the account, whichever is
lower. Other Bank cardholders can withdraw maximum of Rs.10,000 per
transaction. As per RBI guidelines, no charges are payable for using other
banks' ATM for balance enquiry. However, the number of free cash
withdrawals is restricted to five transactions per calendar month to
savings bank account holders. For transactions beyond this minimum
number of transaction for savings bank account holders and to all other
account holders, banks charge maximum of Rs 20/- per transaction. For all
such complaints customer may lodge a complaint with the local Banking
Ombudsman if the bank does not respond.
Credit Cards:
Corporation Bank is pleased to inform the introduction of its own Credit
Card facility. The Corp Bank International Credit Card has been specially
designed taking into account the conveniences and privileges you are used
to. It has been our continuing endeavor to always provide the best of
services and provide remarkable benefits and thus take care of your needs.
In addition to the various services available from Corporation Bank, you
will also have access to the benefits, privileges and extensive reach of the
global VISA network.
Further, CorpBank Credit Cards issued during the first year are ‘Lifetime
free’ thus ensuring that you do not have to pay any annual / renewal fee
for the Card.
The CorpBank International Credit Cards are offered to our customers

maintaining relationships with the Bank and you can apply for the same
through the Branch where you are maintaining your account. You can also
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download the application form from our website and submit the form with
the relevant documents to the branch where you are maintaining your
account.
Phone Banking:
Corporation Bank has introduced Inter Bank Mobile Payment

Service(IMPS) and SMS Banking facility for their Customers. With the
introduction of this facility one can now access the bank account and carry
out a variety of banking transactions through mobile.
The National Payments Corporation of India (NPCI), an organization set up

to implement and oversee the retail payment systems in the country has
launched a simple, easy to use mobile to mobile fund transfer facility.
Interbank Mobile Payment Service (IMPS) is an instant interbank
electronic fund transfer service through mobile phones. An IMP facilitates
customers to use mobile instruments as a channel for accessing their
banks accounts and remitting funds from there.
In the ideal scenario funds should be credited into the beneficiary account
in about 15-30 seconds. In case for any reason, technical or business, the
IMPS transaction is not completed the reversal of the remitters funds will
happen immediately. In case, the status of a particular transaction cannot
be determined due to a link failure in the other bank or NPCI, the funds
would be reversed on the next day. In case, the transaction is not settled
within 7 days, the reversal of fund is done manually on reconciliation on
the 8th day.
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SMS Banking:
The SMS Banking facility works through the concept of SMS (Short
Message Service) functionality available in your mobile phone. SMS
Banking facility of the Bank can be divided into two categories - PUSH &
PULL.
PUSH Services (ALERTS): PUSH based SMS services shall enable the Bank
to send information to the customer's mobile on the occurrence of certain
transactions in the account.
PULL Services (REQUESTS): PULL based SMS services allow the customers
to request for various information relating to their account besides giving
instructions for certain facilities.
Internet Banking:
Corp net – Internet Banking:

Corporation Bank launched Internet Banking for the corporate customers
of its Collection And Payment Services [CAPS] i.e., Cash Management
Services. The Net Banking Facility was launched on 1st January, 2001.
In the niche area of Collection And Payment Services, Corporation Bank

has a leadership presence in the country and caters exclusively to the Cash
Management requirements of the corporates. The Bank, within its
network, has ten specialised CAPS Branches which are fully automated and
currently service over 900 companies.
The Bank’s Fast Collection Services (FCS) is one of its Premier Products as
per which collections from 135 cities / towns are pooled at locations of
corporate’s choice. The Bank is able to substantially collapse the time
involved in transfer of funds representing the receivables, benefiting the
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corporate in terms of improved liquidity, reduced interest cost,

elimination of reconciliation hassles etc.
Corporation Bank introduced the Internet Banking facility for the

corporate customers of CAPS. This facility will significantly change the way
the Cash Management Services is currently delivered. It will impart
convenience of accessing data / information round the clock on all days at
the user.
The Internet Banking facility also helps in making Cash Inflow forecasts so
that deployment of funds can be planned. Data can be downloaded in
different formats which can benefit the corporate in meeting their MIS
purpose It also affords company level aggregates of data of various
divisions and regions. The clients can instruct the Bank on payments to be
effected to predetermined vendors and suppliers. The facility has various
layers of securities both at application level and at system level giving the
comfort to the users.
Corporation Bank, looking beyond traditional banking, has introduced a

series of products and services to different customer segments. CorpNet is
one such product offered by the Bank to its customers. On 1st January,
2001, the Bank had launched Internet Banking (CorpNet) facilities for the
corporate customers of its Collection And Payment Services [CAPS]. The
Bank has introduced the CorpNet facility for Corporate and Retail
customers of its computerized branches effective from 28th March, 2002.
It is envisaged that the new facility will significantly change the way the
services are currently delivered.
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CorpNet offers Account information, Funds Transfer and other Banking

Services modules for the user to retrieve his accounts information and to
request the Bank for online services. Report Printing and Download
options for the user to print/save the information in respective desktop
are provided wherever applicable.
CorpNet is a browser based application and can be accessed through an

Internet Browser. Usage of this product requires minimal training for the
user. CorpNet can be accessed any time of the day irrespective of the
location. CorpNet is capable of running under both, Netscape Navigator
and Internet Explorer (For best results use Netscape Communicator 4.x or
Microsoft Internet Explorer 5.x). In CorpNet, context help is provided on
the menu in all screens. User can refer help text whenever needs
clarification. User can switch from one module to another easily through
the options available in the screen. User can travel between modules
irrespective of the module he is currently in.
3.4.3 Dena Bank:
ATM & Debit Cards:

Dena Bank Debit cum ATM Card offers you an easy and convenient way to
do all your transactions and that too within a fraction of seconds. Presently
Dena Bank has more than 543 ATMs all across India of which 2 are
Biometric ATMs.
Dena Bank offers the following types of cards:

1. Dena ATM Card
2. Dena Insta Card (Un-named Debit Card)
3. Dena Debit cum ATM Card (Named Debit Card)
4. Dena International Gold Debit Card
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ATM Card:
This card can be used on Dena Bank ATMs only and not on any other
Bank’s ATMs or POS terminals. The procedure for availing this card is
given here under:
1. Contact your Branch.

2. If you don’t have saving or Current Account, first open your account.
3. Get the Debit card Application form from the Branch, fill it up and
submit it to your Branch. Mention in the form that only ATM card is
required.
4. Within 10 days, you will receive your ATM Card to your address
given to the Bank.
5. On receipt of the Card the customer has to go to the Branch to
collect the PIN (Personal Identification Number).
6. Activate your card immediately by withdrawing cash from Dena
Bank ATM.
Dena Insta Card (Un-named Debit Card):
This card can be used on Dena Bank & member Bank’s ATMs and POS
Terminals in India and abroad. This card will be issued at the counter
along with the PIN. This card is also called as Un-named card as name of
the card holder is not printed on the card. Card verification value (CVV2)
enabled cards (printed on back side of card) can be used for purchase of
goods on internet including e-ticketing. The procedure for availing this
card is given hereunder.
1. Contact Branch.
2. If you don’t have saving or Current Account, first open your account.
3. Get the Debit Card Application form from the Branch, fill it up and
submit it to your Branch.
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4. You will receive your Insta Debit Card & PIN (Personal Identification
Number) at the time of submission of the application form.
5. The customer has to activate the Insta Debit card after 24 hours
from the receipt of the card by withdrawing cash from Dena Bank
ATM.
Dena Debit cum ATM Card (Named Card):
This card can be used on Dena Bank & member Bank’s ATMs and POS
Terminals in India and abroad. Dena Debit cum ATM card has name of the
customer embossed on the Debit card. Card verification value (CVV2)
enabled cards (printed on back side of card) can be used for purchase of
goods on internet including e-ticketing. The procedure for availing this
card is same as for ATM Card.
Dena International Gold Debit Card:
Dena International Gold Debit card offers higher cash withdrawal limit on
ATM and higher transactions limit on POS terminals. This card can be used
on Dena Bank & member Bank’s ATMs and POS Terminals in India and
abroad. Card verification value (CVV2) enabled cards (printed on back side
of card) can be used for purchase of goods on internet including e-
ticketing.
Customer can perform following types of transactions:

1. Cash withdrawal
2. Cash / Cheque deposit
3. Balance Enquiry
4. Mini statement
5. Fund Transfer
6. Prepaid Mobile Recharge
7. Postpaid Mobile Payment
8. Verified by VISA transactions
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The transaction limits for various types of cards are tabulated hereunder
(suggested withdrawing in multiple transactions of 5000 each if large
amount is needed, as some ATMs do not support withdrawal of full 20000
in one transaction):
Purchase
Cash
Type of Card at Merchant Fund Transfer
Withdrawal
Establishments
Dena ATM Card Up to Rs. 20,000/- Up to Rs.
Not Applicable
per day 1,00,000/- per day
Dena Insta Card Up to Rs. 20,000/- Up to Rs. 25000/- Up to Rs.
per day per day 1,00,000/- per day
Dena Debit cum Up to Rs. 20,000/- Up to Rs. 25000/- Up to Rs.
ATM Card per day per day 1,00,000/- per day
Dena
Up to Rs. 50,000/- Up to Rs. 1,50,000/- Up to Rs.
International per day per day 1,00,000/- per day
Gold Debit Card
One can link multiple accounts at different branches of Dena Bank to a

single ATM / Insta / Debit cum ATM Card and Gold Card. The Account
number of Debit cum ATM Card issuing branches will be the Primary
account number and account at other Cards issuing branches link to the
same card will be the Secondary account. Only primary account will be
linked for POS and VbV transactions.
Dena Bank ATM Sharing Arrangement:
Dena Bank’s Insta / Debit / Gold Cards can be used on the following ATM
sharing networks. The member banks of the multi-lateral sharing
arrangements can be found in the respective websites of member Bank’s
and networks.
1. Cash Tree ATM network

2. Cash net ATM network
3. Visa enabled ATM network
4. National Financial Switch (NFS) ATM Network
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Fee for ATM / Insta / Debit cum ATM Card/ Gold Debit card
Customer would be charged Rs.100/-, if quarterly minimum balance of

Rs.5,000/- is not maintained in case of ATM/ Insta/ Debit card and
Rs.50,000/- in case of Gold Debit card.
Charges:
Customers (who are having savings a/c linked to the debit card) are
allowed first 5 transactions on other Bank’s ATMs free of cost per calendar
month which includes cash withdrawal and balance enquiry both and
transaction above 5 will be charged.
Customers having current account linked to the debit card will be charged
(right from the first transaction i.e cash withdrawal or balance enquiry
done using current account) on other Bank’s ATMs.
Credit Cards:
Discontinuation of “DENACARD” i.e.Existing Dena - VISA Credit Card. The

Bank has entered into arrangement for Co-branded Credit Cards with SBI
Cards so as to make available better features and facilities to the
customers, hence the existing Dena Credit cards have been discontinued
from 31.12.2008.
Phone Banking:
Phone banking system is the interactive voice response system (IVR

System). The phone banking application will prompt the customer to
enter the ‘customer id’ and the "login password" and based on the option
selected by the customer the phone banking system will service the
request of the customer. In case the customer wants to do financial
transaction, he will be required to enter transaction password also.
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The features that are currently available in Phone Banking are given here
under:
Balance Enquiry of All Accounts:
Mini Statement (5 transactions)

Statement of accounts by Email (for any period during last 3 months
preceding from current date)
Statement of accounts by Fax (last 9 transactions )
Cheque Status (paid / unpaid)
Stop payment of cheque.
Inquiry about Debit Card Transaction
Fund Transfer (Self A/cs. Within the Bank)
Fund Transfer (Third Party A/cs. Within the Bank)
Internet Banking:
Dena I-Connect (Internet Banking) is the Internet Banking Service
provided by Dena Bank for the customers of its Core Banking (CBS)
Branches. Net-Banking is the most comfortable channel for you to
experience round the clock banking from any part of the world.
It offers you an easy, hassle free means to avail Banking Services by a few
keystrokes on your keyboard. It means that you will not have to go to your
bank to avail certain basic Banking facilities.
Balance Inquiry.
Mini Statement (Last 9 transactions).
Detailed Statement of Account.
Cheque Book inquiry.
Fund Transfer (Self / Third Party within Dena Bank)
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Funds Transfer (Third Party - Inter Bank using RTGS / NEFT

facility).
Outward cheque inquiry.
E-payment of Direct Taxes and Indirect Taxes.
Online payment of Maharashtra Sales Tax (VAT)
The overall daily limit for all financial transactions except E-
payment of taxes but including RTGS / NEFT transactions is Rs.
20 Lakhs.
3.4.4 ICICI Bank:
Finland is the first country in the world to have taken a lead in e-banking.
In India, ICICI Bank initiated e-banking services during 1997 under the
brand name ‘Infinity’.
ATM & Debit Cards:
ICICI Bank’s widespread network of ATMs makes it easy and convenient

for customers to bank 24 hours a day. With 6700 ATMs set-up within
India, it ensures that a customer is never too far from an ICICI Bank ATM.
User-friendly graphic screens and easy to follow instructions in a choice of
local languages, makes ATM Banking with ICICI Bank a smooth experience.
It also has 2533 branches within the country. The services that an ICICI
Bank ATM offers are cash withdrawal and deposits, balance inquiry and
mini statement, fund transfer & cheque book request, Pre-paid mobile
refill, FAQs, Complaints etc.; they can be classified into 4 parts: 1) Cash
withdrawal 2) Account Related Information 3) Account Maintenance 4)
Customer Information and the services.
79
Credit Cards:
Benefits of Cards: Auto Debit; Cash Advance; Add-on-card; Internet

Banking; Self-set limit; Payment Option : Cash / Cheque / Internet /
Phone; 24 hour Customer Care Email Statement; Mobile Alerts.
ICICI Bank is known to continuously add value to one credit card offers &
benefits and have introduced new Cards with enhanced privileges for the
convenience of the customer. It had made alliances for various credit cards
offered to customers. Select alliance and co-brand Credit Card
programmes have not been renewed by ICICI Bank and these programmes
will continue till June 30, 2012. Card members holding these select co-
brand and alliance Credit Cards will be sent a new ICICI Bank Platinum
Visa Credit Card from July 1, 2012 onwards. This card comes at no Annual
Fee.
Phone Banking:
With Mobile Banking, one can conduct any financial and non-financial
transactions effortlessly and securely. From making payments to checking
one’s account information, Mobile Banking allows to bank from anywhere
at anytime. Banking through your mobile phone, is now a direct and time
saving advantage.
Internet Banking:
ICICI Bank.com offers a variety of features to make banking convenient. It

enables to check out last 10 transactions in the bank account with real-
time balance with the facility to print the statement too. One can trace the
transaction history from the date of account opening. The facility of
Transfer funds Online helps to transfer funds to any ICICI Bank account in
India as well as to non-ICICI Bank accounts in over 100 cities across India.
The Internet Banking User ID and password permits to use VISA Debit
Card online to shop, buy tickets, pay bills and many other services
80
available online. IT is easy as through a single User ID one can simply log
on to ICICIBank.com and view bank, credit card, loan and demat accounts.
Like ATMs one can pay bills to providers of utility services, send a money
order, apply online to open, renew or premature closure of Fixed Deposits
and Recurring Deposits, order a DD/Pay Order, request a cheque book,
change communication address, stop payment of cheque, apply online for
an ATM/Debit Card, upgrade current ATM/Debit Card, subscribe to free
monthly Bank Account statements to be delivered to your e-mail address,
link bank Accounts to ATM/Debit Card, activate blocked card, get a
physical copy of Bank Statement, re-charge the pre-paid mobile online
anywhere, anytime.
3.4.5 HDFC Bank:
ATM & Debit Cards:
HDFC Bank offers you the convenience to withdraw cash, check your
balance, and order a cheque book, from any of our HDFC Bank ATMs
across the country. ATMs make fast, easy and convenient way of
transactions. The website offers the ATM locator facility that easily enables
the customers to locate ATMs. There a multitude of debit cards also
offered by HDFC Bank called Easy Shop cards offered according to the
customized requirements of different segments of customers like women
or professionals. There are easy ways to make payments. One can save
time and experience the convenience of HDFC Bank’s payment methods.
Credit Cards:
Features of Credit Card:
Balance transfer
Loan against card
Easy EMI
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Revolving credit facility

Net limit
Buy travel insurance
Apply for an add on card
Phone Banking:
HDFC Bank Visa Debit Card on mChek is a card issued on your

mobile phone which empowers you to pay your mobile bills,
purchase movie tickets, make utility bill payments, buy air tickets
and shop; all from the convenience of your mobile phone in a safe,
simple and secure manner.
With HDFC Bank Visa Debit Card on mChek, you no longer need to
carry a Debit Card or share card details with anyone, merchant or
internet portal. The transaction can be completed only if your
identity is validated from your mChek registered mobile phone
using the mChek PIN.
mChek:
HDFC Bank Visa Debit Card on mChek is a card issued on the mobile
phone.
Pay utility bills
Buy air tickets
Buy movie tickets
Shop
Benefits:
Transactions on the move from your mobile phone

No physical Debit Card
Your card details are not shared
82
Using ngpay you can bank on the move, but there is much more to this
application than simple Mobile Banking. With ngpay you get a range of
services from a network of partners. Book tickets, shop or transfer funds,
there are so many possibilities.
Ngpay:
Simplifying the world of banking, ngpay is a unique Mobile Banking &

Payment service. Using ngpay, you can:
Access banking services
Book movie tickets
Book travel tickets
Shop
Benefits of ngpay:
Link to a full suite of Mobile Banking and payment services

Enjoy a one-stop solution
Send flowers and gifts, purchase books
Internet Banking:
Net Banking is HDFC Bank's Internet banking service. Through Net

Banking, you can perform all your transactions online without leaving the
comfort of your own home. Manage your account conveniently through the
Internet.
Up-to-the-second details of your account

Access anytime, from anywhere
No queues to stand in, or turns to wait for
Secured with industry standard technology and infrastructure
83
Secure Access:
A simple two-step process that greatly enhances online security and
allows the customer to transfer funds online. To register for Secure Access,
customer will have to:
Personalize an image
Personalize a text
Answer 5 questions
3.2.6 Axis Bank:
ATM & Debit Cards:
At Axis Bank ATMs, a host of your needs are met, ensuring ease of
conducting both banking and non-banking transactions, without
having to visit the branch.
Use our wide network of over 7591 ATMs (as on 30th of Sep'11)
providing 24 hrs a day banking convenience to its customers. This is
one of the largest ATM networks in the country.
Facilities offered
Balance inquiry
Cash withdrawal
PIN change
Mini Statement
VISA money transfer
Money transfer between linked accounts
Request for a new chequebook
Mutual Fund payment
Insurance Premium payments
Register for SMS Banking/NETSECURE
84
Credit Cards:
The Axis Bank Privee Infinite Credit Card has the following privileges:
Unrivaled Safety
Peace of Mind
Convenience
Access to Airport Lounges
Rewards Program
Fuel Surcharge Refund
EMI Facility
General Benefits
Mobile Alerts
Global Acceptance
Global Emergency Assistance
Interest Free period*
Revolve Facility
Balance Transfer
Cash Advance Facility
Auto Debit Facility
With effect from 1st March 2012, Convenience fee of Rs. 50 per payment
will be charged for cash payment of Credit Card bills at our Branches. The
Charges will reflect in the next Billing Cycle along with the Service Taxes
applicable.
Types of Cards:
Infinite Credit Card
Titanium Smart Traveler Credit Card
Signature / Wealth Credit Card
Platinum Credit Card
Easy Credit Card
85
Gold Credit Card

Silver Credit Card
Corporate Credit Card
Phone Banking:
Information / Services available through Phone Banking:

Information about Products and Services
Information about Account Balance and Transactions
Information about status of Cheque Issued or Deposited
Information about Deposit Interest Rates
Information about ATM and Branch locations
Information / Issues on usage of - ATM, Internet Banking or Mobile
Banking
Request for Cheque Book
Request for Statement by E-mail or Fax
Request for Duplicate Statement
Regeneration of ATM PIN for Debit Card
Regeneration of Internet Banking password
Blocking of Internet Banking User ID
Hot listing of Cards
Telebanking service (IVR - Interactive Voice Response) is available
24 hours a day, 7 days a week
Internet Banking:
Now monitor, transact and control your bank account online through our
net banking service. You can do multiple things from the comforts of your
home or office with Axis Bank Internet Banking - a one stop solution for all
your banking needs. You can now get all your accounts details, submit
86
requests and undertake a wide range of transactions online. Our E-

Banking service makes banking a lot more easy and effective.
Features:
Account Details: View your bank account details, account balance,
download statements and more. Also view your Demat, Loan &
Credit Card Account Details too all in one place.
Fund Transfer: Transfer fund to your own accounts, other Axis
Bank accounts or Other Bank account seamlessly.
Request Services: Give a request for Cheque book, Demand Draft,
Stop Cheque Payment, Debit Card Loyalty Point Redemption etc.
Investment Services: View your complete Portfolio with the bank,
Create Fixed Deposit, Apply for IPO etc.
Value Added Services: Pay Utility bills for more than 160 billers,
Recharge Mobile, Create Virtual Cards, Pay any Visa Credit Card
bills, Register for estatement and sms banking etc.
Net Secure - Our Internet Banking Security System

Axis bank follows the best-in-class online security practices in order to
safeguard customer’s information while they are banking online. They are
constantly at task for preventing fraud and thereby making all your net
banking transactions completely safe.
Table 3.3 Total Online Facilities Available In Banks

Stat Bank Of India 13 Highest On-line Facilities (all Over)
Corporation Bank 11
DENA Bank 10
Highest On-line Facilities (In

ICICI Bank 11 Private sector )
Axis Bank 6
HDFC Bank 3 Lowest On-line Facilities
Source: compiled from websites
87
SBI contrary to the expectations has the highest number of online facilities.
It proves that public sector banks are the forerunners in offering online
banking facilities while among the private banks only ICICI Bank offers a
good number of online facilities whereas HDFC Banks looks only a laggard
in this area.
A deeper study of security issues regarding e-banking will be of help to

understand the customer psyche’ for adoption or non-adoption of e-
banking facilities.
3.5 Security Issues in E-Banking:
E-banking has transformed the way customers of bank avail the services
from anywhere, anytime without physical presence. Banks have been
delivering electronic services to its customers and business remotely since
around a decade now. Though increased world-wide acceptance of
internet as a delivery channel for providing services and products creates
new business opportunities, it also gives an opportunity for fraudsters to
use internet as medium to commit frauds. It is important for online users
to be aware of such frauds and protect themselves against them.
There can be offline and online frauds under the transformed regime of e-
banking. The main objective of both offline as well as online fraud is to
steal other person’s ‘identity’. This phenomenon is commonly known as
“identity theft”. Identity theft occurs when someone illegally obtains your
personal information- such as customer’s credit card number, bank
account number, or other identification and uses it repeatedly to open new
accounts or to initiate transactions in your name. Identity theft can happen
even to those who do not shop, communicate, or transact online. A
majority of identity thefts occur offline. Stealing wallets and purses,
intercepting or rerouting customer’s mail, and rummaging through your
88
trash are some of the common tactics that thieves can use to obtain
prepared you will be. Most offline fraud incidences happen as a result of
theft of your mail, sensitive information related to your bank or credit card
accounts, stolen ATM/debit/credit cards, forged/ stolen cheques etc.
Protection from such instances is possible by exercising caution while
receiving, storing and disposing the account statements as well cheques,
ATM/ debit and credit cards. While most online frauds occurs when
someone poses as a legitimate company (that may or may not be in order
to obtain sensitive personal data and illegally conducts transactions on
your existing accounts. Often called “phishing” or “spoofing”, the most
current methods of online fraud are usually through fake emails, Web sites
an pop-up windows or any combination of such methods. Most common
are Phishing and Money Mule.
Phishing:
Phishing is an act undertaken by fraudsters to gain your private and

sensitive information whereby emails sent out appear to be sent bank.
Such fake emails encourage you to click on a link in the email which leads
you to a fake website with a similar look and feel as that of the Bank’s
authentic website. It is designed so to capture your personal confidential
account information such as Customer ID, IPIN, Credit/Debit Card number,
Card expiry date, CVV number, etc. Customers’ email addresses are
obtained/ purchased by the fraudster through non-trusted sites where the
cutomer would have revealed his email ID by means of casual browsing or
shared it on chat rooms, blogs or mailing lists, etc. Some fake emails may
also contain a virus known as a “Trojan Horse” that can record the
keystrokes or could trigger background installations of key logging
software or viruses onto your computer. The virus may live in an
attachment or be accessed via a link in the email. One should avoid
responding to emails, open attachments, or click on links from suspicious
89
or unknown senders. If a customer comes across such an e-mail which he

is not sure of being legitimately sent by their bank then he should report to
the bank without replying to the email.
Indicators of Fake/Phishing E-mail:
The fraudster may use the domain name, email address, logo etc to
give and authentic look to the fake email. Do not rely on the name
and the source in the “From” field of the email address as it may be
easily manipulated by the fraudster to a valid email account of the
bank.
Such fake emails will always address by a generic salutation or
address by “Dear Customer” or “Dear Net Banking Customer”.
Bank’s authentic emails will always address personally by
customer’s own name.
Such fake emails are poorly drafted and may have spelling or
grammatical mistakes.
Such fake emails always encourage clicking on to a link to verify or
update your confidential account information.
The links embedded in such fake emails may sometimes look
authentic but when you move the cursor/pointer over the link,
there may be an underlying link/url to a fake website
Money Mule:
By Phishing or other means of customer identity theft, the fraudster
harvests customer’s Netbanking credentials i.e. customer ID and IPIN with
a motive to transfer money from customer account to another account
holder of the same or different bank. The beneficiary account holder is
referred as a ‘Money Mule’. The beneficiary becomes accomplice
unknowingly by social engineering techniques employed by the fraudster.
90
Indicators of Money Mule:

The fraudster may cook different stories, however his motive will be
to convince to share bank account details, receive money and act as
per his directions.
One should not respond to email from strangers asking you for bank
account details.
One should not get carried away by attractive offers or prizes.
Thus, e-banking is not a new phenomenon but at the same time due to
many risks and challenges in implementation and policy side it has not
gained the expected popularity that it should. Majority of the banks have
offered their services through the alternative delivery channels like ATM,
Phone/mobile banking, credit cards, internet banking etc. but it still needs
to be pushed by the policy makers as well as the banks so that they gain
wider acceptance.
91
References:
1) Cracknell, David, Electronic Banking for the Poor: Panacea,

Potentials & Pitfall, Report by MicroSave-Market-Led Solutions for
Financial Services, Kenya, Page11, September, 2004
2) Gordan,E, Natrajan, K, (2008), Banking Theory, Law & Practice,

Himalaya Publishing House Pvt. Ltd., pg. 455-456
3) Governor, RBI (June, 2010), Report on Trend and Progress of

Banking in India 2009-10, submitted to the Central Government,
pg.93.
4) RBI Bulletin (May, 2011) pg. 1103
5) http://corpbank.com/asp/0100text.asp
6) http://www.denabank.co.in/viewsection.jsp?lang=0&id=0,9,405
7) http://www.hdfcbank.com/aboutus/security/security_measures.htm
8) http://www.axisbank.com/personal/cards/credit-cards/our-
cards/corporate-credit-card/features-benefits.aspx
9) http://www.sbi.co.in/user.htm
10) http://www.icicibank.com/Personal-Banking/cards/personal-
banking-cards.html
11) http://www.hdfcbank.com/personal/product/productlanding/debi
t-cards /gts8miqp
12) www.idrbt.ac.in/infinet/nfs.html
13) www.cashnetindia.com
92

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Reach of E-Banking in Rural India-A Study with Special Reference to Central Gujarat Region

INTRODUCTION TO E-BANKING SERVICES

[Study of various e-products and new technology innovations made by

INTRODUCTION TO E-BANKING SERVICES

Figure No. 3.1 Model on E-Readiness:

Source: Adopted from Cracknell, (2004), Table2, Page11

In the April, 2010 Monetary Policy Statement, the working Group on

The report was placed on RBI website on January 21, 2011.

Stakeholders & public at large on the Report were invited. Based on

Table No. 3.1: Indicators of Financial Access and Depth, India

Source: Report on Trend and Progress of Banking in India 2009-10

3.2 Models of E- Banking:

(i) Complete Centralized Solution :

This is an ideal branch network model on which E-banking

(ii) Cluster Approach:

Under this model, computerized branches of each city are

(iii) High Tech Bank within Bank:

Under this model, complete computerization of all branches is

3.3 Electronic Delivery Channels:

Banking activities through the traditional delivery channel of branch

their products more cheaply than the traditional branch networks

The popular electronic delivery channels are the following:

ATMs have become the order of the day in banking. Though

non-cash transactions, thereby reducing fixed and operating

(ii) Smart Cards/ Credit Cards:

The smart card technology is also widely used by bankers to

(iii) Tele-Banking/ Mobile Banking:

used for rendering Tele-Banking services which have added

(iv) Internet Banking:

Internet has enabled banking at the click of a mouse. Internet

Internet banking is a platform for electronic delivery of

With the drastic fall in cell phone tariff and emergence of

Real-Time Gross Settlement (RTGS):

of payments on a real-time basis across banks in different cities. The RTGS

Table 3.2 Bank Group-wise Number of Transactions in RTGS and

Source: Report on Trend and Progress of Banking in India 2009-10,

Figure 3.2 Volume of transactions under RTGS and NEFT systems

Source: Report on Trend and Progress of Banking in India 2009-10,

3.4 Technology Enabled Initiatives of Banks in India:

The road-map for e-banking implementation has been effectively

Table No.3.3 Computerisation of Public Sector Banks

Source: Report on Trend and Progress of Banking in India 2009-10,

The evolution of e-banking started from the use of Automatic Teller

i.e., TV banking. It has been forecasted that among all categories,

3.4.1 SBI Bank:

ATM & Debit Cards

The service is available on all phones (java/non java) with/without GPRS

The following functionalities are available:

• Enquiry Services (Balance Enquiry/Mini Statement)

• All Current/ Savings Bank Account holders in P segment are

Using Internet banking services, you can do the following normal

Funds transfer between own accounts.

Apart from these, the other salient value-added features available

Utility bill payments

Apart from these, the other salient value-added features available

3.4.2 Corporation Bank:

ATM & Debit Cards:

In addition, Corporation Bank cardholders when transacting in CorpBank

The CorpBank International Credit Cards are offered to our customers

Corporation Bank has introduced Inter Bank Mobile Payment

The National Payments Corporation of India (NPCI), an organization set up

Corp net – Internet Banking:

In the niche area of Collection And Payment Services, Corporation Bank