A PROJECT STUDY ON REVAMPING OF RETAIL INTERNET BANKING TRAINING UNDERTAKEN AT

DEVELOPMENT CREDIT BANK LIMITED

Submitted in partial fulfillment for the Award of Post Graduation Diploma in Management

FMS-INSTITUTE OF RURAL MANAGEMENT, JAIPUR

Submitted By: MOHIT SONTHLIA PGDM 3 SEMESTER (FMS IRM) 2010-12

rd

Submitted To:Mr. DAMODAR AGARWAL VP & HEAD ALTERNATE CHANNEL AND BUSINESS

INTELLIGENCE

DECLARATION
I Mohit Sonthlia, Student of Faculty of Management Studies-Institute of Rural Management, Jaipur hereby declare that project titled REVAMPING OF RETAIL INTERNET BANKING is an original and bonafide work carried out in partial fulfillment of the award of Diploma in management studies from Institute Of Rural Management, Jaipur. This project report is an independent work and has not been submitted to any other university for the award of any degree or diploma.

MOHIT SONTHLIA

ACKNOWLEDGEMENT
Any work of this magnitude requires the inputs, efforts and encouragement of people from all sides. In this project report, I have been very fortunate in having got the active co-operation of many people, whom I would like to thank humbly. First of all, I am thankful to DEVELOPMENT CREDIT BANK LTD., for giving me an opportunity for summer training. I am thankful to Mr. DAMODAR AGARWAL,VP & Head Alternate Channel and Business Intelligence for the same. The true credit of my completing the project successfully goes to Miss HAIMONTI MOITRA, Deputy Manager Alternate Channel whose knowledge guided me throughout the project. Her continuous guidance helped me to understand internet banking services, market dynamics, project objectives and its execution. My experience of the project was an endeavor of many people and hence they are the torchbearers through whom I could see the glimpse of the working style and scenario prevalent in the industry. I am very thankful to all the suggestions and technical knowledge and skills which were embodied into me by the valuable support of employees of the organization. I take pride in mentioning the mental, moral and physical encouragement provided by my parents. I would also like to mention many thanks to all my friends for their continuous support and help during the project study.

MOHIT SONHLIA

TABLE OF CONTENT
SUB HEADING PAGE NO. PAGE No. 6 6 7 7 8 8 9 9 9 10 11 12 13 13 13 14 14 15 17 17 17 22

PARTICULARS A. INTRODUCTION The project I. Statement of problem II. Objective of the report III. Research methodology IV. Significance of the project V. Limitations of study VI. Review of literature 1.1 History of internet banking 1.2 Quick facts 1.3 Schedule commercial banks 1.4 No. of commercial banks in India since 2002 1.6 Internet banking 1.7 Levels of internet banking 1.8 The RBI steps in 1.9 Regulatory and supervisory concerns 1.10 Security key concern B. PROFILE OF DCB C. ANALYSIS i. Through secondary data a. By peer report b. Analysis for user id and pin generation c. Analysis Through The Customer Survey Done By Accenture Research Survey For A Magazine ii. Analysis through primary data D. RECOMMENDATIONS E. BIBLOGRABHY

25 30 39 40

LIST OF FIGURES
FIGURE 1.1 FIGURE 1.2 FIGURE 1.3 FIGURE 1.4 FIGURE 1.5 FIGURE 1.6 FIGURE 1.7 FIGURE 1.8 FIGURE 1.9 FIGURE 1.10 Peer report Channels that customer use banking transactions Percentage of people using channel for specific reason Channels that customers would use for particular services Customer satisfaction from channel they use Track of survey of customer Track of survey of BOMs Percentage of customers respondent from different banks Frequency of using internet banking services by the customers Satisfaction of customer by internet banking

A. INTRODUCTION
The Project
Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his banks 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 or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere branch. It would a borderless entity permitting anytime, anywhere and anyhow banking The project Revamping of Retail Internet Banking is an attempt to study and gain in depth knowledge of retail internet banking especially about the new features of internet banking like value added services, online pin generation and requests that can be made through retail internet banking. Internet banking is preferred by banks because it is beneficial for banks. The following are the ways in which it is beneficial for the banks:1. It is helpful in providing customers more satisfaction and services with an ease to customers. It gives customer 24*7 access to account, convenience to perform transaction at time which is best suitable to customers, to save time by not visiting branches these advantages of internet banking gives customer more satisfaction and more customers connect to the bank for their convenience. 2. Internet Banking cut cost of the bank of transactions performed. It cut cost of the paper used, salary of staff in branches, etc. Costs of banking service through the Internet amount to a fraction of the costs through conventional methods. Industry estimates assume cost at $1.14 per transaction, ATM transaction costs at $ 0.46, and Internet banking at $ 0.23 per transaction. It also cut cost of the customers in saving the cost of visiting branch.

3. Internet banking is also beneficial for environment as it saves the paper involved in the branch transactions.In this way it is also beneficial for the society by reduction in cutting of trees. Hence due to above stated factors I choose the topic Revamping of Retail Internet Banking to revise and reconstruct the retail internet banking of DCD to provide more services and features through internet banking to provide customers more convenient options through internet.

I. STATEMENT OF THE PROBLEM

1. As the bank is in the developing stage it needs to give customers more services so that more customers can be connected to bank by providing attractive services through internet banking as customers nowadays have less time to visit branches and they want that more transactions can be performed and more services can be accessed according their convenience and ease. 2. Most of the developed and competitor banks are giving wide range of services through internet banking services to attract customers and to make banking convenient to the customers. In order to compete with these banks DCB needs to take measures in order to retain existing customers and to create new customers. 3. Bank need to cut cost in branch banking to increase the profits so internet banking is to be promoted as there is less cost involved in it. It costs bank minimum as compared to other form of banking like branch banking, ATM banking etc. so it is beneficiary for bank to have maximum internet banking customers.

II. OBJECTIVE OF THE REPORT

1. The first objective of the report is to provide banks with the input what the consumer wants new in the internet banking. What are the new services required by customer in internet to provide them more satisfaction and easy access to account. 2. The feature of other banks are compared and studied to know what are the new and convenient features that are provided by other banks in their internet banking facilities. This is done to make DCBs internet banking facilities more competitive and to provide some exclusive features to the customers. 3. In order to provide easy and instant access to the internet banking facilities instant registration facility is to be introduced for internet banking. This facility will be convenient to customer as customers will not have to walk to branches for 7

registration for internet banking and they can get registered for internet banking in minutes sitting their home. As well as this service is also beneficial for DCB as for this service bank has not to bear cost of paper and sending customer id and password through courier. Also by instant registration more of the customers will get registered for internet banking.

III. RESEARCH METHODOLOGY

The basic characteristics of a good research design are scientific method, research creativity, interdependence of models and data, proper balance between value and cost of the research healthy skepticism.

Research design
In this research primary as well as secondary data is used. For collection of primary data random sampling method of collecting data is used. In this population have an equal chance of being getting selected.

Primary data
For the purpose of research primary data was collected through random sampling method. The data was collected through filling questionnaire by visiting branches. There were two questionnaires one for Branch operation managers and other for the customers. For this purpose 6 branches were visited and questions from BOM and customer were asked. 16 customers were and 6 BOM were surveyed for the purpose.

SECONDARY DATA
Secondary data was collected for comparing the internet banking services of various banks with DCB. Services of 10 various nationalized and MNC commercial banks are taken for the purpose. The data was collected through the website of the banks and by calling their customer care. Required secondary data about DCB is taken from the data base of DCB for the purpose of coming to the conclusion of the report. Various journals published were also used for the purpose of research.

IV. SIGNIFICANCE OF THE PROJECT

To the organization
Service 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. More customer satisfaction

To the intern
The project helped in understanding the alternate channels in banking sector. The project helped in understanding the new trends in retail internet banking. The project helped in understanding the importance of security in banking sector especially in internet banking. The project helped in understanding the drafting of process in banking sector

V. LIMITATIONS OF STUDY
Problem in collecting data of the internet banking of the other banks Problem during the survey as customers using internet bank dont visit to branches frequently

VI. REVIEW OF THE LITERATURE

1.1 History of internet banking

YEAR 1996-1998 1999 2001

PHASES Orientation phase Started by ICICI Bank Other banks started services like CITI Bank, Indusland, HDFC Increase in the users RBI Formulated policy for internet banking

ICICI was the first bank to initiate the Internet banking revolution in India as early as 1997 under the brand name 'Infinity'. ICICI Bank kicked off online banking way back in 1996 . But even for the Internet as a whole, 1996 to 1998 marked the adoption phase, while usage increased only in 1999 due to lower ISP online charges, increased PC penetration and a tech-friendly atmosphere. Internet revolution is global phenomenon and going by the current growth statistics, India expects a spurt in the Internet penetration in coming years particularly in the electronic commerce. It is an obvious notion that electronic (Internet) banking and payments are likely to advance more or less in tandem with e-commerce. Researches indicate that Internet banking has a significant impact on the business models of banks, securities trading firms, brokerage houses, insurance companies etc. Internet banking has attracted the attention of, regulators and lawmakers in the developing nations like India since the late 1990s.

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1.2 Quick facts FACTS Total internet banking users (upto2010) Expected users of internet banking in 2015 Total no. of branches of schedule commercial banks (till sep. 2010) Internet banking users of DCB Cost of branch banking Cost of internet banking 1.3 Schedule commercial banks
Scheduled commercial Banks constitute those banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (60 of the Act. Some co-operative banks are scheduled commercial banks albeit not all co-operative banks are. Being a part of the second schedule confers some benefits to the bank in terms of access to accommodation by RBI during the times of liquidity constraints. At the same time, however, this status also subjects the bank certain conditions and obligation towards the reserve regulations of RBI. For the purpose of assessment of performance of banks, the Reserve Bank of India categorizes them as:PUBLIC SECTOR BANKS These are Banks where majority of stake is held by the government of India or RBI. Examples are SBI, Corporation Bank, Bank of baroda, Dena Bank etc. PRIVATE SECTOR BANKS In this type of banks the majority of their share capital is held by private Individuals. These banks are registered as companies with limited liability. Examples are Jammu & Kashmir Bank, Bank of Rajasthan, DCB, Federal Bank, Overseas Bank, Vyasa bank ,etc. FOREIGN BANKS

STATISTICS 45.1 million 59.8 million 65000 25977 $1.14 $0.23

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These are registered banks with their headquarters in a foreign country but operate their branches in our country. Some of them are HSBC, Citibank, American Express Bank, Standard Chartered Bank, etc. The no. of foreign banks operating in India has increased since the financial sector reforms of 1991.

1.4 Number of schedule commercial banks in India since 2002

YEAR 2002 2003 2004 2005 2006 2007 2008 2009 2010 NO. OF COMMERCIAL BANKS 298 293 291 288 222 182 173 170 167

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1.6 Internet banking

Internet banking involves consumers using the Internet to access their bank account and to undertake banking transactions. At the basic level, Internet banking can mean the setting up of a Web page by a bank to give information about its product and services. At an advance level, it involves provision of facilities such as accessing accounts, funds transfer, and buying financial products or services online. This is called ``transactional'' online banking. There are two ways to offer Internet banking. First, an existing bank with physical offices can establish a web site and offer Internet banking in addition to its traditional delivery channels. Second, a bank may be established as a "branch less, Internet only, or virtual bank" without any physical branch.

1.7 Levels of Internet Banking

Broadly, the levels of banking services offered through Internet can be categorized in three types: (i) The Basic Level Services use the banks' websites which disseminate information on different products and services offered to customers and members of public in general. It may receive and reply to customers' queries through e-mail, (ii) In the next level are Simple Transactional Websites which allow customers to submit their instructions, applications for different services, queries on their account balances, etc, but do not permit any fund-based transactions on their accounts, (iii) The third level of Internet banking services are offered by Fully Transactional Websites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. 13

Most of the banks providing Internet banking products and services offer, to a large extent, an identical and standard package of banking services and transactional capabilities.

1.8 The RBI steps in

The Reserve Bank of India (RBI) has created a comprehensive document which lays down number of security-related guidelines and strategies for banks to follow in order to offer Internet banking. The guidelines broadly talk about the types of risks associated with Internet banking, the technology and security standards, legal issues involved, and regulatory and supervisory concerns. Any bank that wants to offer Internet banking must follow these guidelines and adhere to them as a legal necessity.

1.9 Regulatory and Supervisory Concerns

Internet banking requires that the banks internal systems to be linked with the systems in public domain. Further, the concept of conventional audit trails is not logically applicable to Internet banking. Internet Banking is susceptible to risks in the form of criminal activities, such as fraud, money laundering, tax evasion etc. Internet banking allows the banks as well as customers to operate with geographical boundaries thus creating a problem of exchange controls. Cross border issues are more critical when the banks have their operating offices in different locations posing the problems of jurisdiction and conflicting laws of different nations. Evidences indicate that banks are facing loss of customer confidentiality, which may pose a reputation risk to banks and the banking system as a whole. However some banks have started educating customers through adequate disclosures of such risks. Internet Banking is subject to various statues including Banking Regulations Act, 1949, the Reserve Bank of India Act, 1934, and the Foreign Exchange Management Act, 1999, Information Technology Act, 2000, Indian Contract Act, 1872, the Negotiable Instruments Act, 1881, Indian Evidence Act, 1872, etc. which need to be amended and made clear in relation to the Internet banking transactions. A study conducted by Gupta (2006) also raised concerns over data protection provisions. The impact of Internet banking on monetary and credit policies of Reserve Bank of India is a critical area of concern. In developed countries a broad regulatory framework for Internet banking exits, which is still pending in India.

1.10 Security-Key Concern

It's evident from the document and from a general study of the business case of Internet banking, that security is perhaps the biggest concern. Connectivity issues to remote locations is also very important, but the need to be secure is far more pressing.

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Security issues include questions of adopting internationally accepted state-of-theart minimum technology standards for access control, encryption/decryption (minimum key length), firewalls, verification of digital signature, and Public Key Infrastructure (PKI). The key components of security concerns are Authentication: The assurance of identity of the person in a deal Authorization: A party doing a transaction is authorized to do so Privacy: The confidentiality of data and information relating to any deal Data integrity: Assurance that the data has not been altered Non-repudiation: A party to the deal cannot deny that it originated the communication or data If these areas are not addressed, the bank may suffer operational risk, reputation risk, legal risk, money laundering risk, and strategic risk

B. PROILE OF THE DCB

ABOUT THE BANK
A new generation private sector bank, Development Credit Bank (DCB) is the preferred banking services provider across 80 state-of-the-art branches across 10 states and two union territories. The Bank has recently launched several value added initiatives and intends to become one of the countrys preferred and profitable private sector banks, providing a comprehensive suite of best in class products for customers in Retail, SME and Corporate Banking market segments in chosen geographies. DCB has deep roots in India since its inception in the 1930s. Its promoter the Aga Khan Fund for Economic Development (AKFED) holds over 23% stake. AKFED is an international development agency dedicated to promoting entrepreneurship and building economically sound enterprises in the developing world. It had co-promoted HDFC in India in the late seventies. AKFED operates as a network of affiliates comprising 90 separate project companies. Employing over 30,000 people, it reported annual revenues in excess of US$1.5 billion. The Fund is active in 16 countries in the developing world

DCB - A Historical Perspective

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Built on over 78 years of trust, tradition and togetherness, DCB was converted into a Scheduled Commercial Bank on May 31,1995, in the wake of Indias economic liberalisation. It was the only co-operative bank, which successfully crossed over and thrived in the face of change. The Bank has a network of 80 state-of-the-art, customer friendly, and conveniently located branches across the states of Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Delhi/ NCR, Rajasthan, Goa, Tamil Nadu, Haryana, West Bengal and the Union Territories of Daman & Diu and Dadra & Nagar Haveli.

Spreading wings, with the wind beneath

Under the able guidance of an experienced Board of Directors and the leadership of a dynamic senior management team DCB strategically aims to enhance its reach and spread, while introducing exciting new banking products for its customers. Seamless, flawless and timely service To adhere to its vision of becoming the gold standard in customer service in Indian banking, intensive training and service quality programmes have been initiated with customer delight becoming the key focus of the Bank. This will become the lifeblood of DCB and act as its key differentiator.

Not just a Bank, a Financial Supermarket

DCB intends to offer an extensive range of products across its branches. Suitable variants of the basic products like savings and current accounts as well as innovative products such as the DCB Trio and Easy Business, keep DCB ahead of the pack. Demat Account and a range of investment products like mutual funds, insurance and bonds make the product offering complete.

Close to its roots, yet flying high

Since its inception, DCB has always taken an active interest in developing low-cost customer deposit products and providing for the needs of small and medium businesses in select regions. It continues to fulfil every consumer need with great enthusiasm. The Bank is also suitably equipped with the latest versions of Finacle from Infosys and Oracle to provide seamless service to its customers.

A Bank for its people

The pan-India employee teleconferences and introduction of performance-based incentives have already charged the existing work force. Given its reputation for being a non-hierarchical and dynamic organization, DCB is one of the chosen destinations for aspiring banking professionals.

A grip on the future

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The Bank has an active and robust treasury, managing its interest rate risks and liquidity by providing an uninterrupted flow of funds, positioning the Bank for future growth

Vision
DCB has a vision to be the most innovative and responsive neighborhood community bank in India serving entrepreneurs, individuals and businesses.

Values
Treat Everyone with Dignity Respect Do what is Right Ethical Be Open & Transparent Fair Sense of Urgency, Passion & Energy Dynamic Go the Extra Mile & Find Solutions Stretch Improve Continuously Excellence Play as a Team, To Win Teamwork Support the Society - Contribute

BRANCHES OF BANK
STATE Maharashtra Gujrat Anhra Pradesh Karnataka Delhi/NCR Rajasthan Goa Tamil Nadu Haryana West Bengal UNION TERRITORIES Daman Dadra Nagar Haveli NO. OF BRANCHES 35 12 10 04 06 01 04 02 01 03

01 01

C. ANALYSIS:17

i.

Through Secondary Data

By peer report In this analysis a peer report is prepared by visiting the sites of various other banks and calling customer care of the banks. The report was prepared under the heads of various parameters like transactions, account information, security etc. The peer report is prepared to know what are the services provided by other banks and DCB is not providing to internet banking customers. This report is very helpful in comparing the services of other banks. The peer report is prepared by comparing the banks including public sector bank, private sector bank and foreign banks. The various parameters that are taken in consideration while preparing peer report are-: Account information:-In this the account information that bank is providing through internet banking is compared. Banks provide various information to account holder through internet banking channels are view account balance, inquire about the cheque status that the customer has deposited, printing of statement and inquiry about TDS. This all information helps in convenience to customers as well as cost cutting to banks in respect of staff at branches, paper cost and time saving. Transactions-: This shows the transactions that a customer can perform through the internet banking channels. The transactions that a customer can perform through internet banking channels are transfer funds within bank, transfer funds outside bank, create fixed deposit and renew fixed deposits. There are many factors that are there in transactions like transfer outside bank have two types of transfers NEFT AND RTGS, some bank take charges for fund transfer through internet banking, time taken in fund transfer is also a factor, some banks provide recurring fund transfer and also the facility to schedule fund transfer. Requests-: These are the request that can be made through the internet banking channel. The requests include request for cheque book, stop payment of cheques, request for demand draft, utility bill registration, recurring payment of utility bill, updation of contact no. , address updation and registration for mobile banking. By these requests customer need not visit branches for these requests and requests can be made through internet banking channel. Value Added services-: The Banks provide customers certain value added services through internet banking channels. These services are prepaid recharge, booking of railways and airlines channels, payment of college fees, shopping through internet banking, VAT payments, file return of various direct and indirect taxes. These is helpful in saving time as well as convenient to customer as they cab book ticket of recharge mobile anytime anywhere they want.

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User interface-: This is about how easy is internet banking to use for the customers. It should be user friendly to use so that customers dont face programs while using internet banking services in this there are many factors like email to the bank, setting of favorite, search option and demo of internet banking. These features make internet banking easy to use customers and the customers will be more satisfied. Security-: security is the main concern of any bank in internet banking. Internet banking should be secure so that the fraudulent transactions can be prevented and customers feel safe in using the internet banking. The internet banking channel should be properly secured. There are various factors in making internet banking services like payment gateway, in case customer forgets password what he needs to do, virtual keyboard for password, is there separate password for financial transactions, way of sending password to customers, expiry of password and expiry of user ID. Mainly customer dont use internet because of security reasons. Prepared peer report is given in the next two pages.

PEER REPORT

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FIGURE1.1.1

20

FIGURE 1.1.2

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The peer report is prepared to compare the internet banking services of DCB with 10 other public sector, private sector and foreign banks. On comparing the data it was found that under the head of parameter account information transactions shown is less as compared to all the other banks. In internet banking of DCB transactions of only 3 months are shown which is less as compared to other banks as they provide transactions of 6 months and some of them have no such limit on transactions. Under the head of parameter transactions recurring payment facility is not available in DCB internet banking facility while the 50% of the other banks taken for comparing are giving the facility of recurring payment. Fund transfer cap is Rs.100000 in DCB while 8 other banks have limit of more than Rs.100000. Under the head of parameter requests DCB is not providing the facility of updating contact no. while the 3 other banks are providing this facility. DCB is also not providing facility updating address while the 5 other banks are providing this facility. DCB does not have facility of recurring payments of bill while he 7 other banks are providing this facility. Under the head of parameter value added services the DCB is not providing most of the facilities. DCB is not providing the facility of booking railway and airlines ticket while 6 other banks are providing this facility. 3 of the other banks are providing the facility of fees payment of specified institutes while DCB is not providing this facility. Internet banking facility of DCB does not give facility of shopping to its customers while the 6 other banks are providing this facility. VAT payment is also not available in the internet banking services of DCB while 3 other banks are providing this facility. DCB is also not providing the facility of payment of direct and indirect taxes while 6 of the other banks are providing this facility. Under the head of parameter user interface DCB does not have demo of internet banking on their website while 7 other banks have demo on their website for internet banking. DCB dont have search option on internet banking while 2 other banks are providing this option. Under the head of parameter security DCB sends password and user id to the address while 5 other banks have facility of getting generated both of them online. In internet banking of DCB there is no expiry for the user id while 5 other banks have duration of expiry of user id. Analysis for online user id and pin generation Analysis is done for the generation of online user id and pin. The generation of online user id and pin will save cost of the bank. It is also convenient to the customer as they can register anytime anywhere and instantly. The customer need not visit the branch and wait for receiving user id and password it is generated instantly. For this analysis process of 5

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banks is analyzed to know the process other banks are following. The process of other banks is as follows

Step 1 Customer clicks on the link on website www.standardchartered.co.in for instant registration Step 2 Customer enters his 16 digit debit card no. and submit. Step 3 Customers registered mobile no. will appear for verification if no. is correct, confirm and 6 digit temporary password will be sent on customers registered no. Step 4 Customer need to Enter 6 digit temporary password received and click on confirm Step 5 Customer need to create personal login by creating user name and password, customer need to retype password again to confirm and click on next and there is successful registration Step 6 Customer can login through user name and password created

Step 1 Customer need to click on the link of registration on the website www.hsbc.co.in Step 2- Customer need to enter the details of debit card like debit card no., issue no. (It is printed near logo of visa) and pin no. of card and click on continue Step 3 Customer need to create user name of their choice and click on confirm. Step 4 Customer need to set primary and secondary passwords and retype to confirm and click on continue.

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Step 5 Customer need to set 2 secret questions from set of questions and answer them this will needed to be answered in case next time customer wants to reset password online. Step 6 Customer need to select the account preferences and enter email id and click on confirm Step 7 Customer can now login through username and password created

Step 1 Click on the link register now on www.indusind.com Step 2 Customer need to enter customer id and submit Step 3 Customer either need to create a new user id or enter customer id as their user id Step 4 Customer need to enter debit card details like card no., pin, date of expiry of card and card verification no. (It is last 3 digits on the signature panel on the card) Step 5 Customer need to enter either date of birth or pan card no. and click on submit Step 6 Customer has to now create a new login password and transaction password and confirm both and click on submit now link will appear to login and customer can login through user id and password registered

Step 1 Customer need to click on the link of instant registration on website www.citibank.co.in.

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Step 2 Customer need to enter the details of card like card no., expiry date of card and enter personal details like date of birth and pincode of area click on generate online Authorization code and the code will be sent to customers registered mobile no. Step 3 Customer needs to enter the OAC code received and again enter the details of card and personal details with this also enter the two digits of pin of card and submit. Step 4 Customer has to confirm the registered mobile no. and email address. Step 5 Customer has to create a password and retype to confirm.

Step 1 Customer need to call on 24 hour customer care follow option on IVR, authenticate by 16 digit debit card no. and 4 digit pin and the user id will be generated instantly over the call. Step 2 Customer need to call on IVR follow the options on IVR register for online password generation and a six digit unique code will be sent to customers registered mobile no. Step 3 Customer needs to enter the six digit unique code sent on customers registered mobile no. and create a one-time password Step 4 Customer need to visit www.icicibank.com and login with user id and one time password created

These are processes of 5 banks that are followed by them for online pin generation a process is to be followed by DCB also which is secure and user friendly for the user this will also save the cost of the bank of courier, paper etc. and also more of the registration for internet banking will increase as the customers can register from their home. The best of 5 of them is of Citibank as the process requires both debit card details and personal information it has two points security of what customer has and what customer knows. The code is also sent to the registered mobile no. to ensure that the code is received by the customer and it can not be misused.

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c) Analysis Through The Customer Survey Done By Accenture Research Survey For A Magazine This is a survey conducted by accenture research survey for Mint magazine to know the consumer behavior on various channels of banking. The survey was conducted on 3459 customers of 11 banks. The various aspects that were out through the survey are the channels which consumer prefer, the reason for using specific channel, the channels that customer would use for particular services and satisfaction of customers with the channel they use.

Channel that customer use for banking transactions

50 45 40 35 Percentage 30 25 20 15 10 5 0 ATM BANK INTERNET BRANCH
FIGURE 1.2

47

31 Series1

12 6 4

PHONE

MOBILE

Channel

Majority of the customer use ATM as the channel for banking transaction. 47% of the customer use ATM a channel for banking transactions followed by 31% using bank branches after that 12% using internet as channel for banking transactions. 6% are using phone as channel and 4% are using mobile as channel for banking transactions. More customers use ATM and branches because cash can be withdrawn from both of these.

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FIGURE 1.3

The above data is based on the data obtained from a open ended option in which the person can give more than one option. The majority of people that is 66% have given the their preference as accebility means they can access from whereever the customers want. The next is followed by the quality of service through channel or no error made by the channel it is replied by 63% of people. Next is speed of service through channel it is

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replied by 60% people after that 55% people replied for security of channel. 51% of the people replied for working hour of the channel. Cost factor and problem resolution capacity are replied by 42% of people. 21% of people choose channel for the human contact or personal interaction.

CHANNELS THAT CUSTOMERS WOULD USE FOR PARTICULAR SERVICES

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BA N K P H O N M O B I LE E C h a n n e ls t h a t c u s t o m e rBw A u l C Hr a th e r T E R NiA T%K) INAGN K IN G R o N d T M IN u s e B E N B A (n Is su e o f d e m a n d d ra f ts 85 0 16 10 0 O b t a i n i n g d o c u m e n t s / f o r m s8 f2o r b a0n k i n g2 n e e d 1s 4 2 0 M a k in g a f ix e d d e p o s it 81 2 7 4 2 R e q u e st fo r d e b it/ cre d it ca rd 6 7 0 21 26 0 A p p lica tio n fo r lo a n s 74 0 19 18 7 T ra n sfe r o f m o n e y 71 10 37 6 9 R e q u e st fo r a ch e q u e b o o k 68 4 29 35 19 Sto p ch e q u e p a y m e n t 68 0 24 31 24 P a y m e n t o f b ills 67 6 32 6 5 C h a n g e o f A T M / I n t e r n e t b a n4k6i n g p2a7s s w o3 r4d 1 3 13 A cco u n t sta te m e n ts 41 31 43 22 26 C h e ck in g b a n k b a la n ce 18 57 32 21 30 W ith d raw in g ca sh 15 90 0 0 0

FIGURE 1.4

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FIGURE 1.5

The above survey shows that 12% of the customers are using internet banking services. The survey also shows that 66% of the customer needs access anywhere which is possible through internet banking channel. 51% of the customers prefer with the channel which has more working hours and the working hours are convenient. Internet banking has 24*7 access so the consumer can access it any time according to their convenience. 42% of the customer prefer the cost of using the channel which is minimum in internet banking. The above survey also shows that maximum 47% of consumer use ATM as channel the reason behind this that firstly consumer can withdraw cash from ATM. It has also access of 24*7. Followed by ATM 31% of the customers use branch banking this is because from branch also customer can withdraw cash as well as it is the most secure channel of banking and survey shows that 55% of the customer prefers secure channel of banking. In branch banking there is also personal interaction and according to survey 21% of the consumer prefers the human relations.

Analysis Through Primary Data

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The analysis is done through a survey conducted by visiting the six branches of DCB IN Mumbai. There was a questionnaire for customers consisting of 7 questions to know what are the reasons for using internet banking, what are the services customers are using for the internet banking, what are the problems customers facing while using internet banking. There were 16 customers who responded to the questionnaire. Random sampling method is used for the sampling. Also there was a questionnaire for the branch operation managers(BOM). It consists of 2 questions to know what are the queries of customer regarding the internet banking and and what are the problems customer facing regarding the internet banking. Questionaire for customer and branches is as follows-:

SURVEY FOR INTERNET BANKING SERVICES

Name: Address:

Contact no. :

Questionnaire
1. Do you use internet banking services? a.) Yes b.) No 2. Which bank internet services are you using? a. DCB b. ICICI c. SBI d. HDFC e. Standard Chartered f. CITI g. others specify

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3. How often do you use internet banking services? a. Daily b. Weekly c. Monthly 4. What were your reasons for choosing online banking service? Please select all that apply a. b. c. d. Convenience To save time 24*7 access to account Others specify

5. Which online features do you use regularly?

6. What all problems you are facing while using internet banking?

7. Overall, how satisfied are you with online banking service? a. b. c. d. Very Satisfied Satisfied Unsatisfied Very unsatisfied

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Questionnaire for branches

Branch:-

1.

What queries customers have regarding internet banking?

2. What problems customers have regarding internet banking?

On the basis of data obtained from the above questionnaire a track report is prepared to know the response of the customers and BOMs. The track report prepared is as follows-:

TRACK OF SURVEY OF CUSTOMERS

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W H IC H B AHNOKW O F T E N AYSOO UN S F E ART U R E S PYROOUB LE S E S W H I LE RE O UM D O U U S E IN T E R N E T A R R VU IC INS G H O O S IN G H R O U G H U S IN G N E O V E R A LL IN E R N T SE E S E C T T B R A N C H C U S T O M E C ONNATM C T B AON. K I N G A R E Y O U U NS T E R N E T IN AT N R NNE G IN AT N R N E G B A N K IN G S A T IS F A C T I O N R AE N I IN G B E K I T B E K IN T B A N K IN G Sta te m e n t,C h e q u e M alad G a u r a n g m o h a9n8a2 0 8 1 7 3 3 6 Ye s DCB W e e k l y C o n v e n i e ns tc ae t u s No Satisfie d K a m l e s h V o r a9 8 7 0 4 3 7 5 6 6 Ye s DCB D a ily T o s a v e t i m h e c k b a l aNnoc e Ce V e ry Sa tisfie d P u n e e t Tyagi 9223256540 Ye s DCB W e e k l y C o n v e n i e na c e e s s t o aNc o o u n t s S a t i s f i e d c c F re q u e n t p a ssw o rd A l p e s h V i v0 a2 h k 2 8r 8 8 0 Y e 8 2- a 15s DCB P r e v i o u s l yC u s i vn eg n i e nB cael a n c e e nc h a n rgy e U n s a t i s f i e d on qui 24* 7 A cce ss to A tu l P a n jik a r 9 5 9 4 1 4 9 6 6 6 Ye s HDFC W e e k l y a c c o u n t C h e c k b a l aNnoc e Satisfie d C o n v e n i e nF c e,TTr o n s f e r D , a s a v e t i m e ,2u 4n*d7s ,c h e S k r v e r i s s u e , l o g i n f ce A n u r a l i M i n a s a r8i 7 0 4 4 8 5 7 7 9 ya Ye s HDFC D a ily A c c e s s t o a cacl o n c et s f a i l e d b aun Satisfie d T o k e e p tra ck F re q u e n t p a ssw o rd A b h i j e e t P r a j a9p8a2t 0 3 5 8 7 0 3 i Ye s DCB M o n t h ly re co rd I n t e r n a l t r ca hn as n eg re S a t i s f i e d f Tra n sfe r 2 4 * 7 A c c e s u n od s ,c h e c k a / c fs t Deepu 9820879712 Ye s S o u t h I n d iW ne B a nyk a c c o u n t b a l ., m u t u a l of u n d s S a t i s f i e d a ekl N C h e ck b alan ce , P ra b h ak a r 9867778567 Ye s DCB W e e k l y C o n v e n i e nT c a c k t r a n s a oc t i o n s S a t i s f i e d re N B ala n ce e n q u iry ,F u n d V a r d h m a n S e t 9 7i a 3 5 6 6 5 3 0 h 7 Ye s DCB D a ily C o n v e n i e nt rcaen s f e r N o V e ry Sa tisfie d B an d ra N a sir K h a n 9324098550 Ye s SB I M o n t h l y C o n v e n i e nA ccec o u n t q N eo r i e s u V e ry Sa tisfie d Tra n sfe r f u n d s,b ill M u rta za b a ta 88885 98862 Ye s HDFC M o n t h l y C o n v e n i e np caey m e n t s N o V e ry Sa tisfie d M i ra R o a dS a h i n a s a y e d 9 8 2 0 2 8 2 7 6 7 Ye s C IT I M o n t h l y C o n v e n i e nC chee c k a / c E v ae truy s t i m eS ap ti ins f i e d st A cco u n t V e rs o v a M a n s u k h 9833143486 Ye s DCB D a ily C o n v e n i e no cpee r a t i o n N , o D s F V e ry Sa tisfie d N age n d ra m an i C o n v e n i e nB cael a, Tn oc e , F u n d G o re g a o n p a n d e y 9920215521 Ye s HDFC W e e k ly sa v e tim e tra n sf e r S e rv e r is s u e t is f ie d Sa Tra n sfe r f u n d s ,T r a c k J o g e s h w a ri i a d h a r a a h s a a n 0A2 l4i 3 4 8 4 7 B 97 Ye s DCB W e e k l y C o n v e n i e np caey m e n t s N o V e ry Sa tisfie d

FIGURE 1.6

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TRACK OF SURVEY OF BOMs

QE EO U I SF R CS M U OE T R Psw d a o s r dl y e a F, o t D w H o tase rn r f f ns ud To w psw d r a o se s r , gt r ae i epye s L i on. i tf o m o f tascos rn t n ai & a onAd m t dr u, es pao s udt n i P BM RL S OE O F CS M U OE T R T na i n r sco a t Pswr a o s d ntw k o oi rn

BN R C A H

JOEH AI G W S R

MLD A A

Sr es w e rl v o

GR A N O GO E

n o

A DEI NH R

VR V ES A O

N o T ne r sr af whudb i ot ei t t cr , oee a cl g d l fe es

BNR AD A

Pswr a o s d Lc ok Fn ud tas r o r nf n e t k gl c ai p e n a Pswr a o s d Lc, a w ok s o Ps r nt do r ci e o ee d n v tm i e

FIGURE 1.7

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FIGURE 1.8

FIGURE 1.9

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FIGRE 1.10

The data obtained by the survey shows that 75% of the customer surveyed are using the internet banking services for their convenience. 18.75% customers are using for saving time and same 18.75% are using because of 24*7 access to account while 6.25% are using to keep a track record of the transactions. The services that customers generally using are statement, cheque status, to check balance, fixed deposit, transfer of funds and mutual funds through the internet banking channel. Majority of the customer are using internet banking to know the balance of their accounts. 68.75% of the customers are facing no problem in the internet banking services. The others who are facing problems are due to the frequent password change, problem in separate transaction password and slow server. There is password expiry duration of 45 days in internet banking services of DCB so customers find it difficult to change password in every 45 days. On the basis of data obtained from BOMs of 6 branches of DCB the enquiry of customer are as follows-:

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Why there is password delay Can FD be created through internet banking channel How to transfer funds What are the 2 passwords How to register payee for funds transfer Limit on no. of transactions and amount Can address updation be done through internet banking Can college fees be paid through internet banking

Problems that customer face are as follows-: Transaction password not working Slow server Fund transfer not taking place Password not received on time Password locked

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D.

RECOMENDATIONS

Technological improvements -: The technology used for internet banking server is to be improved as customers are facing problem of slow server and login failed so the problem can be rectified by improving the technology used. Introducing new features -: Some new and exclusive features can be introduced in the internet bank to give more convenience to customers. Features like booking of railway tickets, payment of taxes, increasing the cap of external transfer, VAT payments, etc. can be introduced. Online user id and pin generation -: Generation of online password for internet banking is an instant process. It is beneficial for both bank and customers. Customers can register instantly and start using the internet banking services. They are not required to visit branch and wait for the password and user id to be couriered to the customers. The process is beneficial to bank as it is a cost saving process in terms of salary of branch staff, paper and courier. It is also beneficial for society as by this papers are saved. Security device -: A security device can be introduced for the customers. In this device every time customer login a code is displayed on the device that code is to be entered to continue the login. This will increase the security of the customers and security is the major concern of customers while using internet banking.

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E. BIBLOGRAPHY
BOOKS
P.K. Gupta, Jamia Millia Islamia, Internet Banking In India Consumer Concerns And Bank Strategies, 1ST Edition,2008 The mint magazine

WEBSITE
www.rbi.org.in www.dcbl.com www.scribd.com www.slideshare.net www.wikipedia.com

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