This document discusses the rise of internet banking in India. It provides background on drivers of change like improving customer access and reducing costs. It notes that while internet banking is growing in India, many banks still only offer basic services. Emerging challenges include growing customer expectations and global competition. Key concerns for internet banking are security and privacy. The current scenario in India sees banks adopting more IT solutions to meet customer needs in the growing market.

1. A STUDY ON INTERNET BANKING IN IOB
BY
KARTHIK.V
Register number:1036337
of
SRM EASWARI ENGINEERING COLLEGE
KARTHIK.V
Registration Number:1036337
A PROJECT REPORT
Submitted to the
FACULTY OF MASTERS OF BUSINESS ADMINISTRATION
In partial fulfillment of the requirements
for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY
CHENNAI 600 02

2. ii
JUNE 2011
BONAFIDE CERTIFICATE
Certified that the Project report titled _________________________________ is the
bonafide work of Mr. / Ms. ________________________________ who carried out the
work under my supervision. Certified further that to the best of my knowledge the work
reported herein does not form part of any other project report or dissertation on the basis
of which a degree or award was conferred on an earlier occasion on this or any other
candidate.
Supervisor Head of the department
Submitted to project and viva-examination held on

3. iii
ABSTRACT
Now a day’s Internet facilities are increasingly used by banks as a channel for
receiving instructions and delivering their products and services to their customers. This form
of banking is generally referred to as Internet Banking, although the range of products and
services offered by different banks vary widely both in their content and sophistication.
Internet banking service are offered by Fully Transactional Web sites 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.
The above forms of Internet banking, services the customer or by new banks, who deliver
banking service primarily through Internet or other electronic delivery channels as the value
added services. Some of these banks are known as “Virtual‟ banks or “Internet only‟ banks
and may not have physical presence in a country despite offering different banking services.
Internet banking is act as medium of delivery of banking services and as a strategic tool for
business development. Through the internet banking facility the customers are able to do the
following transaction, account to account transfer, paying a bill, apply for a loan, open new
account, Electronic bill payment, Funds transfer, Investment purchase or sale, Loan
applications and transactions, online statements and Bank statements, etc. apart from that
there are many useful facilities are present in the internet banking. This study particularly
analysis the current changes in internet banking technology in Indian Banks. The
questionnaire is designed to collect the opinion about the proper use of the changing
technology particular in internet banking. Then the collected data are interpreted using the
suitable statistical tool.

4. iv
ACKNOWLEDGEMENT
I would like to express my heartfelt thanks and profound gratitude to Mr.VASUDEVAN
who has consented to be my Project Guide. Not only did she allow me to avail all the
facilities for completing the project work but also her guidance, valuable advice and
support played an important role throughout the project.
I would also like to express my sincere gratitude to all the respondents without whom this
project would not have been possible.
I consider it my privilege to acknowledge the assistance rendered by the Head of the
Department and the Faculty Members (Department of Management Studies, SRM
Easwari Engineering College, Ramapuram, Chennai).
Finally, I am thankful to my family members and friends who were either directly or
indirectly involved with the progress and the successful completion of this assignment.
Signature of Student
Karthik V

5. v
TABLE OF CONTENTS
1. INTRODUCTION 01
1.1 Background Study 01
1.1.1 Drivers of Change 01
1.1.2 Indian Banks on Web 02
1.1.3 Emerging Challenges 02
1.1.4 Main concerns In Internet Banking 03
1.1.5 Current Scenario 04
1.1.6 Technology In Banking 05
1.2 Problem Identified 09
1.3 Need For The Study 09
1.4 Objectives Of The Study 10
1.4.1 Primary Objectives 10
1.4.2 Secondary Objectives 10
1.5 Expected Deliverables 10
2. LITERATURE SURVEY 11
2.1 Review of Literature 11
3. METHODOLOGY 13
3.1 Type of Project 13
3.2 Target Respondents 13
3.3 Assumptions, Constraints and Limitations 13
3.3.1 Assumptions 13
3.3.2 Constraints 13
3.3.3 Limitations 14
3.4 Sampling Method 14
3.5 Research Methodology 14
3.5.1 Area Of Research 14
3.5.2 ResearchDesign 14
3.6 Tools for Analysis 15

6. vi
4. DATA ANALYSIS AND INTERPRETATION 16
4.1 Analysis And Interpretation 16
5. CONCLUSIONS 51
5.1 Summary of Findings 51
5.2 Suggestions 54
5.3 Conclusions 55
6. APPENDIX 56
6.1 Questionnaire 56
7. REFERENCES 60

7. vii
LIST OF TABLES
Table No. Table Name Page
4.1 Age of Respondents 16
4.2 Gender of Respondents 16
4.3 Education level of Respondents 17
4.4 Occupation of Respondents 18
4.5 Monthly Income Level of Respondents 19
4.6 Span of Bank Account held by the Respondents 20
4.7 Projection of Level of Internet Banking Usage 21
4.8 Span of Online Account Usage 22
4.9 Frequency of Internet Banking Usage 23
4.10 Online Services Used by the Respondents 24
4.11 Opinion on Performance Improvement through Internet Banking 25
4.12 Opinion on Easy Conduct of Transactions through Internet Banking 26
4.13 Opinion on Elimination of Timing Constraints through Internet Banking 27
4.14 Usage of Virtual Keyboard 28
4.15 Usage Level of Virtual Keyboard 28
4.16 Satisfaction Level on Secured Information sent to Mobile 29
Acceptance level in increase in security with Internet and Mobile
4.17 30
Banking
Satisfaction level in increase in security with Internet and Mobile
4.18 31
Banking
4.19 Satisfaction level on Security before Internet Banking 32
4.20 Satisfaction level on Security After Internet Banking 33
4.21 Opinion on understandability of Online Banking 34
4.22 Opinion on Easy Learning of Online Banking 35
4.23 Opinion on Easy Use of Online Banking 36
4.24 Opinion on lesser mental effort using Online Banking 37
4.25 Seminar Programs conducted by bankers on Online Banking 38
4.26 Belief on Internet Banking 39
Satisfaction level on Third Party Transaction Time through Internet
4.27 40
Banking
4.28 Satisfaction level facilities in Internet Banking 41
4.29 Need of Change in Internet Banking Websites 42
4.30 Acceptance of Internet banking in near future by respondents 43
4.31 Increase in Internet banking usage in near future by respondents 44
4.32 Satisfaction level on Security in Internet banking 45
4.33 Opinion on fraudulent exposure in Internet banking 46
4.34 Observed Frequency 48

8. viii
4.35 Expected Frequency 48
4.36 Chi-Square Analysis 48
4.37 Observed Frequency 49
4.38 Expected Frequency 49
4.39 Chi-Square Analysis 50
LIST OF FIGURES
Fig No. Figure Name Page
4.1 Age of Respondents 16
4.2 Gender of Respondents 17
4.3 Education level of Respondents 18
4.4 Occupation of Respondents 19
4.5 Monthly Income Level of Respondents 20
4.6 Span of Bank Account held by the Respondents 21
4.7 Projection of Level of Internet Banking Usage 21
4.8 Span of Online Account Usage 22
4.9 Frequency of Internet Banking Usage 23
4.10 Online Services Used by the Respondents 24
4.11 Opinion on Performance Improvement through Internet Banking 25
4.12 Opinion on Easy Conduct of Transactions through Internet Banking 26
4.13 Opinion on Elimination of Timing Constraints through Internet Banking 27

9. ix
4.14 Usage of Virtual Keyboard 28
4.15 Usage Level of Virtual Keyboard 29
4.16 Satisfaction Level on Secured Information sent to Mobile 30
Acceptance level in increase in security with Internet and Mobile
4.17 31
Banking
Satisfaction level in increase in security with Internet and Mobile
4.18 32
Banking
4.19 Satisfaction level on Security before Internet Banking 33
4.20 Satisfaction level on Security After Internet Banking 34
4.21 Opinion on understand ability of Online Banking 35
4.22 Opinion on Easy Learning of Online Banking 36
4.23 Opinion on Easy Use of Online Banking 37
4.24 Opinion on lesser mental effort using Online Banking 38
4.25 Seminar Programs conducted by bankers on Online Banking 39
4.26 Belief on Internet Banking 40
Satisfaction level on Third Party Transaction Time through Internet
4.27 41
Banking
4.28 Satisfaction level facilities in Internet Banking 42
4.29 Need of Change in Internet Banking Websites 43
4.30 Acceptance of Internet banking in near future by respondents 44
4.31 Increase in Internet banking usage in near future by respondents 45
4.32 Satisfaction level on Security in Internet banking 46
4.33 Opinion on fraudulent exposure in Internet banking 47

10. x

11. 1
CHAPTER 1 - INTRODUCTION
1.1 Background Study:
The Internet banking is changing the banking industry and is having the major effects on
banking relationships. Even the Morgan Stanley Dean Witter Internet research emphasised
that Web is more important for retail financial services than for many other industries.
Internet banking involves use of Internet for delivery of banking products & services. It falls
into four main categories, from Level 1 - minimum functionality sites that offer only access
to deposit account data - to Level 4 sites - highly sophisticated offerings enabling integrated
sales of additional products and access to other financial services- such as investment and
insurance. In other words a successful Internet banking solution offers
• Exceptional rates on Savings, CDs, and IRAs
• Checking with no monthly fee, free bill payment and rebates on ATM surcharges
• Credit cards with low rates
• Easy online applications for all accounts, including personal loans and mortgages
• 24 hour account access
• Quality customer service with personal attention
1.1.1 DRIVERS OF CHANGE
Advantages previously held by large financial institutions have shrunk considerably. The
Internet has levelled the playing field and afforded open access to customers in the global
marketplace. Internet banking is a cost-effective delivery channel for financial institutions.
Consumers are embracing the many benefits of Internet banking. Access to one's accounts at
anytime and from any location via the World Wide Web is a convenience unknown a short
time ago. Thus, a bank's Internet presence transforms from 'brouchreware' status to 'Internet
banking' status once the bank goes through a technology integration effort to enable the
customer to access information about his or her specific account relationship. The six
primary drivers of Internet banking includes, in order of primacy are:

12. 2
• Improve customer access
• Facilitate the offering of more services
• Increase customer loyalty
• Attract new customers
• Provide services offered by competitors
• Reduce customer attrition
1.1.2 INDIAN BANKS ON WEB
The banking industry in India is facing unprecedented competition from non-
traditional banking institutions, which now offer banking and financial services over the
Internet. The deregulation of the banking industry coupled with the emergence of new
technologies, are enabling new competitors to enter the financial services market quickly and
efficiently.
Indian banks are going for the retail banking in a big way. However, much is still to be
achieved. This study which was conducted by students of IIML shows some interesting facts:
• Throughout the country, the Internet Banking is in the nascent stage of development (only
50 banks are offering varied kind of Internet banking services).
• In general, these Internet sites offer only the most basic services. 55% are so called 'entry
level' sites, offering little more than company information and basic marketing materials.
Only 8% offer 'advanced transactions' such as online funds transfer, transactions & cash
management services.
• Foreign & Private banks are much advanced in terms of the number of sites & their level of
development.
1.1.3 EMERGING CHALLENGES
Information technology analyst firm, the Meta Group, recently reported that
"financial institutions who don't offer home banking by the year 2000 will become

13. 3
marginalized." By the year of 2002, a large sophisticated and highly competitive Internet
Banking Market will develop which will be driven by
• Demand side pressure due to increasing access to low cost electronic services.
• Emergence of open standards for banking functionality.
• Growing customer awareness and need of transparency.
• Global players in the fray
• Close integration of bank services with web based E-commerce or even disintermediation
of services through direct electronic payments (E- Cash).
• More convenient international transactions due to the fact that the Internet along with
general deregulation trends eliminates geographic boundaries.
1.1.4 MAIN CONCERNS IN INTERNET BANKING
In a survey conducted by the Online Banking Association, member institutions rated
security as the most important issue of online banking. There is a dual requirement to protect
customers' privacy and protect against fraud. Banking Securely: Online Banking via the
World Wide Web provides an overview of Internet commerce and how one company handles
secure banking for its financial institution clients and their customers. Some basic
information on the transmission of confidential data is presented in Security and Encryption
on the Web. PC Magazine Online also offers a primer: How Encryption Works. A multi-
layered security architecture comprising firewalls, filtering routers, encryption and digital
certification ensures that your account information is protected from unauthorised access:
• Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to
access the system.
• Encryption techniques used by the bank (including the sophisticated public key encryption)
would ensure that privacy of data flowing between the browser and the Infinity system is
protected.
• Digital certification procedures provide the assurance that the data you receive is from the
Infinity system.

14. 4
1.1.5 CURRENT SCENARIO
The Indian has finally worked up to the competitive dynamics of new Indian market
and is addressing the relevant issues take on the multifarious challenges of globalization.
Banks that employ IT solutions are perceived to be futuristic and proactive players capable of
meeting the multifarious requirement of large customer base. Private Banks have been fast on
the uptake and are reorienting their strategies using the Internet as a medium.
The Indian banking has come from a long from being a sleepy business institution to
a highly proactive and dynamic entity this transformation has been largely brought by the
large dose of liberalization and economic reforms that allowed exploring new business
opportunities rather than generating revenues from conventional streams. The Indian industry
has confidently hit the growth trial that pick in activity is best reflected in the banking sector
which after all is as candid a mirror of a country’s economy as you could ever find. Most of
the Indian financial intermediaries have been keeping pace with the deepening market
economy, riding the opportunity that come along with reforms even as they brace themselves
for increased competition both foreign and private by strengthening prudential norms and
leveraging technology to ensure that growth engine hums smoothly along The essential
function of a bank is to provide services related to the storing of value and the extending
credit. The evolution of banking dates back to the earliest writing, and continues in the
present where a bank is a financial institution that provides banking and other financial
services. Currently the term bank is generally understood an institution that holds a banking
license. Banking licenses are granted by financial supervision authorities and provide rights
to conduct the most fundamental banking services such as accepting deposits and making
loans. There are also financial institutions that provide certain banking services without
meeting the legal definition of a bank, a so called non-bank. Banks are a subset of the
financial services industry.
The word bank is derived from the italian banca, which is derived from German and
means bench. The terms bankrupt and "broke" are similarly derived from banca rotta, which
refers to an out of business bank, having its bench physically broken. Money lenders in
Northern Italy originally did business in open areas, or big open rooms, with each lender
working from his own bench or table. Typically, a bank generates profits from transaction

15. 5
fees on financial services or the interest spread on resources it holds in trust for clients while
paying them interest on the asset.
Services typically offered by banks
Although the type of services offered by a bank depends upon the type Of bank and
the country, services provided usually include:
• Directly take deposits from the general public and issue checking and saving
accounts.
• Lend out money to companies and individuals (see money lender)
Cash checks.
• Facilitate money transactions such as wire transfers and cashiers checks
• Issue credit cards, ATM, and debit cards and online banking.
• Storage of valuables, particularly in a safe deposit box.
1.1.6 TECHNOLOGY IN BANKING
• Technology will bring fundamental shift in the functioning of banks. It would not
only help them bring improvements in their internal functioning but also enable them
to provide better customer service. Technology will break all boundaries and
encourage cross border banking business. Banks would have to undertake extensive
Business Process Re-Engineering and tackle issues like a) how best to deliver
products and services to customers b) designing an appropriate organizational model
to fully capture the benefits of technology and business process changes brought
about. c) how to exploit technology for deriving economies of scale and how to create
cost efficiencies, and d) how to create a customer - centric operation model.
• Entry of ATMs has changed the profile of front offices in bank branches. Customers
no longer need to visit branches for their day to day banking transactions like cash
deposits, withdrawals, cheque collection, balance enquiry etc. E-banking and
Internet banking have opened new avenues in “convenience banking”.
• Technology solutions would make flow of information much faster, more accurate
and enable quicker analysis of data received. This would make the decision making

16. 6
process faster and more efficient. For the Banks, this would also enable development
of appraisal and monitoring tools which would make credit management much more
effective. The result would be a definite reduction in transaction costs, the benefits of
which would be shared between banks and customers.
• One area where the banking system can reduce the investment costs in technology
applications is by sharing of facilities. We are already seeing banks coming together
to share ATM Networks. Similarly, in the coming years, we expect to see banks and
FIs coming together to share facilities in the area of payment and settlement, back
office processing, data warehousing, etc. While dealing with technology, banks will
have to deal with attendant operational risks. This would be a critical area the Bank
management will have to deal with in future.
• Payment and Settlement system is the backbone of any financial market place. The
present Payment and Settlement systems such as Structured Financial Messaging
System (SFMS), Centralised Funds Management System (CFMS), Centralised Funds
Transfer System (CFTS) and Real Time Gross Settlement System (RTGS) will
undergo further fine-tuning to meet international standards. Needless to add,
necessary security checks and controls will have to be in place. In this regard,
Institutions such as IDRBT will have a greater role to play.
1.1.7 INDUSTRY PROFILE:
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be able to
meet new challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer confined to
only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached
even to the remote corners of the country. This is one of the main reasons of India's growth
process.
The government's regular policy for Indian bank since 1969 has paid rich dividends
with the nationalisation of 14 major private banks of India.

17. 7
Not long ago, an account holder had to wait for hours at the bank counters for
getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days
when the most efficient bank transferred money from one branch to other in two days. Now it
is simple as instant messaging or dial a pizza. Money have become the order of the day.
The first bank in India, though conservative, was established in 1786. From
1786 till today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:
• Early phase from 1786 to 1969 of Indian Banks
• Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
• New phase of Indian Banking System with the advent of Indian Financial & Banking Sector
Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase
III.
Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency
Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913,
Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank
of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India came
up with The Banking Companies Act, 1949 which was later changed to Banking Regulation

18. 8
Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was
vested with extensive powers for the supervision of banking in india as the Central Banking
Authority.
During those day’s public has lesser confidence in the banks. As an aftermath deposit
mobilisation was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.
Phase II
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalised Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of
india to act as the principal agent of RBI and to handle banking transactions of the Union and
State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on
19th July, 1969, major process of nationalisation was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was
nationalised.
Second phase of nationalisation Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
Phase III
This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was
set up by his name which worked for the liberalisation of banking practices.

19. 9
The country is flooded with foreign banks and their ATM stations. Efforts are being
put to give a satisfactory service to customers. Phone banking and net banking is introduced.
The entire system became more convenient and swift. Time is given more importance than
money.
The financial system of India has shown a great deal of resilience. It is sheltered from
any crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the
capital account is not yet fully convertible, and banks and their customers have limited
foreign exchange exposure.
1.2 PROBLEM IDENTIFIED
Even though the technology updation has been adopted in internet banking, still the
customers are unaware about the updation of technology and the reason for the
technology updation. Some of the customers are not using the internet banking at once to
access their account. Most of the customers are using the branch networks, and ATM
facilities. Only educated people are aware about the internet banking facilities and the
procedures to access their account online. Even among the educated people, some of
them are still feeling insecure about performing the transactions through net banking
facilities provided by the banks. The bank doesn’t take any actions to make aware their
customers to use the internet banking facility or to increase the satisfaction level among
their customers.
1.3 NEED FOR THE STUDY
This study analyses about the need for internet banking facility offered by banks to
their customers. The specific online facilities include fund transfer, online bill payment,
balance enquiry and most of the other activities related to the customer’s bank account.

20. 10
These were implemented to overcome the problems associated with traditional banking
system, which includes time delay in transactions, need of physical presence of customers,
and more paper work for bankers and so on.
This study has been mainly carried out to intimate the changes, updations in internet
banking facility. This study makes contributions by showing how the current internet
banking facilities contribute in increasing the efficiency of the banking operations and also
focuses on the acceptance level among the Customers for Internet banking. Hence, it is
necessary to conduct a study to know whether the implementation of Internet Banking has
served the purpose or not.
1.4 OBJECTIVES OF THE STUDY
1.4.1 Primary objectives
 To study the effectiveness of the Internet Banking in India.
1.4.2 Secondary objectives
 To study on current internet banking facilities provided by banks.
 To study the usage level of the Internet Banking facilities by customers.
 To study the improvement of efficiency of banking operations obtained by Internet
banking.
 To notify the changes needed from customer view in existing internet banking
facilities
1.5 EXPECTED DELIVERABLES:
This study answers the efficient features that have been included in the internet
banking to increase the efficiency of the banking operations and gives the level of internet
banking utilization among the respondents. It gives the level of convenience among the
bankers and customers in adopting the internet banking. At the end of the study at least some
of the customers may get aware about the features available in internet banking.

21. 11
CHAPTER 2
LITERATURE SURVEY
2.1 REVIEW OF LITERATURE:
Internet banking is the latest in the series of technological wonders of the recent past.
ATMs, Tele-Banking, Internet Banking, Credit Cards and Debit Cards have emerged as
effective delivery channels for traditional banking products. Internet or Electronic or online
banking is the newest delivery channel to be offered by retail banks in many developed
countries, and there is a wide agreement that this channel will have a significant impact on
the market. Banks know that the Internet opens up new horizons for them and moves them
from local to global frontiers (Mavri and Ioannou, 2006). Internet banking refers to systems
that enable bank customers to get access to their accounts and general information on bank
products and services through the use of bank’s website, without the intervention or
inconvenience of sending letters, faxes, original signatures and telephone confirmations
(Thulani et al, 2009; Henry, 2000). In its simplest form, electronic banking may mean the
provision of information about the bank and its products via a page on the internet (Ibrahim
et al, 2006). It is the types of services through which bank customers can request information
and carry out most retail banking services such as balance reporting, inter-account transfers,
bill-payment, etc., via a telecommunication network without leaving their homes or
organizations (Aladwani, 2001; Mols, 1998; Sathye, 1999). In essence, it is an electronic
consumer interface and an alternative channel of distributions. Online banking has been
regarded as the most important way to reduce cost and maintain or enhance services for
consumers (Hua, 2009). It provides universal connection from any location worldwide and is
universally accessible from any internet linked computer (Thulani et al, 2009; Perunal and
Shanmugan, 2004; Bradley and Stewart, 2003 and Rotchanakitumnuai and Speece, 2003). It
is a process of innovation whereby customers handle their own banking transactions without
visiting bank tellers.
E-Banking: A Case Of India

22. 12
http://ideas.repec.org/a/icf/icfjpa/v05y2009i1p55-65.html .
Author Info - R. K. Mishra, J. Kiranmai
Information technology is considered as the key driver for the changes taking place
around the world. According to Heikki, the transformation from the traditional banking to e-
banking has been a ‘leap’ change. 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 i.e., TV banking. 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’. It has been forecasted that among all categories,
online banking is the future of electronic financial transactions. The rise in e-commerce and
internet in enhancing online security transformation and sensitive information has been the
core reason for the penetration of online banking in everyday life. The shift towards the
involvement of the customers in the financial service with the help of technology, especially
internet, has helped in reducing costs of financial institutions as well as clients/customers
who use the service at anytime and from virtually anywhere with access to an internet
connection. The article presents an overview of e-banking, its evolution, and comparison of
the internet banking facilities in Indian banks. The case study approach has been used to
compare various banks for rendering different internet banking services to its customers.

23. 13
CHAPTER 3
METHODOLOGY
3.1 TYPE OF PROJECT: SURVEY TYPE
This includes designing questionnaire for collection of data through field study,
collecting data from target respondents, processing and analyzing the data and arriving at
conclusions.
3.2 TARGET RESPONDENTS:
The target of 150 respondents from the following group has been taken for the study.
Target Group:
The study is based on the sample drawn from the customers of IOB BANK providing
the internet banking facility. The convenience sampling method is used for sampling.
3.3 ASSUMPTIONS, CONSTRAINTS AND LIMITATIONS
3.3.1 Assumptions
• The project will evaluate the E-banking services offered by the Bank.
• Analyze the gap between the availability of E-banking technological services and its
usage in the banking Industry.
• The samples are collected from the customers of Banks.
• Let us assume that the responses from the customers are accurate.
3.3.2 Constraints
• The Project work can be done with in the duration of 1 months.
• The Customers and Staffs may not answer for all the questions. So data collection
requires more time.

24. 14
3.3.3 Limitations
• The data collection will be done through designed questionnaire only. So, the
response from the respondents may not accurate.
• Due to time limitations only 150 samples size has been taken for this work. So, if this
work is conducted to maximum persons, it may give accurate result.
3.4 PROPOSED SAMPLING METHODS
The Sampling technique adopted in the present study is Convenience sampling. It is
also called haphazard or accidental sampling. Members of the population are chosen based
on their relative ease of access. To sample friends, co-workers, or shoppers at a single mall,
are all examples of convenience sampling. Sometimes called grab or opportunity sampling,
this is the method of choosing items arbitrarily and in an unstructured manner from the
frame. Though almost impossible to treat rigorously, it is the method most commonly
employed in many practical situations.
3.5 RESEARCH METHODOLOGY
3.5.1. AREA OF RESEARCH
The area of research is IOB Bank that have adopted Internet Banking. Research is
about to be conducted to the Bank Customers and Staffs with the sample size of 150.
3.5.2. RESEARCH DESIGN
Descriptive research designs are used in this study. Descriptive research is also called
Statistical Research. The main goal of this type of research is to describe the data and
characteristics about what is being studied. The idea behind this type of research is to study
frequencies, averages, and other statistical calculations. Although this research is highly
accurate, it does not gather the causes behind a situation. Descriptive research is used to

25. 15
obtain information concerning the current status of the phenomena to describe "what exists"
with respect to variables or conditions in a situation.
Here we also tried to find out the main cause why there is perceptual blocking of the
Indian customers towards internet banking. The methods involved range from the survey
which describes the status quo, the correlation study which investigates the relationship
between variables, to developmental studies which seek to determine changes over time.
 Statement of the problem
 Identification of information needed to solve the problem
 Selection or development of instruments for gathering the information
 Identification of target population and determination of sampling procedure
 Design of procedure for information collection
 Collection of information
 Analysis of information
 Generalizations and/or predictions
3.5 Tools for analysis
The following tools are used for the data analysis
 Percentage analysis
 Chi-Square analysis

26. 16
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4.1 ANALYSIS AND INTERPRETATION
Age:
Table: 4.1 – Age of Respondents
Sino Age No of Respondents Percentage
1 18-25 63 42
2 25-35 57 38
3 35-45 27 18
4 > 45 3 2
Total 150 100
Fig 4.1 – Age of Respondents
Interference
From the above chart 42% of the respondents 18-25 age, 38% of the respondents 25 -35 age,
18% of the respondents 35-45 age, 2% of the respondents >45 and none of the respondents
Greater than 44.
Gender:
Table 4.2 – Gender of Respondents

27. 17
Sino Gender No of Respondents Round Off
Percentage
1 Male 122 81
2 Female 28 19
Total 150 100
Figure 4.2 – Gender of Respondents
Interference:
From the above chart we found 81% of the respondents are male and 19% of the respondents
are female.
Education:
Table 4.3 – Education level of Respondents
Sino Particulars No of Respondents Percentage
1 10th 6 4
th
2 12 9 6
3 U.G 87 58
4 P.G 48 32
Total 150 100

28. 18
Table 4.3 – Education level of Respondents
Interference:
From the above chart 4% of the respondents 10th, 6% of the respondents 12th, 58% of the of
the respondents U.G, and 32% of the respondents P.G.
Occupation
Table 4.4 – Occupation of Respondents
S. No Particulars No of Respondents Percentage
A Student 45 30
B Government 8
employee 12
C IT sector 60 40
D Other private sectors 33 22
Total 150 100

29. 19
Figure 4.4 – Occupation of Respondents
Interference:
From the above chart 30% of the respondents Student, 8% of the respondents Government
employee, 40% of the respondents IT sector, and 22% of the respondents other private
sectors.
Monthly Income (in Rupees)
Table 4.5 – Monthly Income Level of Respondents
S. No Particulars No of Respondents Percentage
A <5000 6 4
B 5001 – 8000 36 24
C 8001- 12000 33 22
D 12001-15000 30 20
E >15000 45 30
Total 150 100

30. 20
Figure 4.5 – Monthly Income Level of Respondents
Interference:
From the above chart 4% of the respondents are having monthly income <5000, 24%
of the respondents are having monthly income between 5001 - 8000, 22% of the respondents
are having monthly income between 8001- 12000, and 20% of the respondents are having
monthly income between 12001-15000, and 30% of the respondents are having monthly
income >15000.
How long you have a bank account?
Table 4.6 – Span of Bank Account held by the Respondents
S. No Particulars No of Respondents Percentage
A <1yr 9 6
B 1yr – 3 yrs 72 48
C 3yrs – 5yrs 57 38
D >5yrs 12 8
Total 150 100

31. 21
Figure 4.6 – Span of Bank Account held by the Respondents
Interference:
From the above chart 6% of the respondents <1yr,48% of the respondents 1yr – 3 yrs, 38%
of the respondents 3yrs – 5yrs, and 8% of the respondents >5yrs.
Do you use Internet Banking?
Table 4.7 – Projection of Level of Internet Banking Usage
Sino Particulars No. of Respondents Percentage
1 Yes 93 62
2 No 57 38
Total 150 100
Figure 4.7 – Projection of Level of Internet Banking Usage

32. 22
If yes, go to Question 3
If No, go to Question 14
How long you have an online account?
Table 4.8 – Span of Online Account Usage
S. No Particulars No of Respondents Percentage
A <1yr 35 38
B 1yr – 2 yrs 26 28
C >2 yrs 32 34
Total 93 100
Figure 4.8 – Span of Online Account Usage
Interference:
From the above chart 38% of the respondents <1yr, 28% of the respondents 1yr – 2 yrs, and
34% of the respondents >2 yrs.

33. 23
How often do you use Internet Banking services?
Table 4.9 – Frequency of Internet Banking Usage
Sino Particulars No. of Respondents Percentage
1 More than once a week 43 46.2365591
2 Once a week 20 21.5053763
3 Once every 2 weeks 10 10.7526882
4 Once a month 10 10.7526882
5 Other 10 10.7526882
Total 93 100
Figure 4.9 – Frequency of Internet Banking Usage
Interference:
From the above chart 50% of the respondents are more than once a week, 20% of the
respondents are once a week, 10% of the respondents are once every 2 weeks, 10% of the
respondents are once a month and 10% of the respondents are other.

34. 24
Which of the following services used by you through the on-line banking systems? (You can
tick more than 1)
Table 4.10 – Online Services Used by the Respondents
Sino Particulars No. of Percentage
Respondents
1 Online bill payment 35 37.634409
2 Fund transfer 17 18.27957
3 Checkbook Application 5 5.3763441
4 Summary reports of transaction 10 10.752688
5 Account information and balance 10 10.752688
enquiry
6 Share margin trading account 6 6.4516129
7 None 10 10.752688
Total 93 100
Figure 4.10 – Online Services Used by the Respondents
Interference:
From the above chart 35% of the respondents are online bill payment, 20% of the
respondents are fund transfer, 5% of the respondents are checkbook application, 10% of the

35. 25
respondents are Summary reports of transaction and 10% of the respondents are account
information and balance enquiry, 10% of the respondents are Share margin trading account,
10% of the respondents are none.
Using the on-line banking systems would improve my performance in conducting banking
transactions.
Table 4.11 – Opinion on Performance Improvement through Internet Banking
Sino Particulars No. of respondents Percentage
1 Totally agree 24 25.8064516
2 Agree 42 45.1612903
3 Neutral 20 21.5053763
4 Disagree 7 7.52688172
5 Strongly disagree 0 0
Total 93 100
Figure 4.11 – Opinion on Performance Improvement through Internet Banking
Interference:
From the above chart 24% of the respondents are totally agree,49% of the respondents are
Agree,20% of the respondents neutral,7% of the respondents are Disagree and 0% of the
respondents are Strongly Disagree.
a) Totally Agree
b) Agree

36. 26
c) Neutral
d) Disagree
e) Strongly disagree
Using the on-line banking systems would make it easier for me to conduct banking
transactions
Table 4.12 – Opinion on Easy Conduct of Transactions through Internet Banking
Sino Particulars No. of respondents Percentage
1 Strongly agree 8 8
2 Agree 48 52
3 Neutral 17 20
4 Disagree 20 20
5 Strongly disagree 0 0
Total 93 100
Figure 4.12 – Opinion on Easy Conduct of Transactions through Internet Banking
Interference:
From the above chart 8% of the respondents are strongly agree,52% of the respondents are
Agree,20% of the respondents are neutral , 20% of the respondents are Disagree and 0% of
the respondents Strongly Disagree.
a) Strongly agree

37. 27
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
On-line banking eliminates time constraints; thus I can use the banking services at any time I
like.
Table 4.13 – Opinion on Elimination of Timing Constraints through Internet Banking
No. of
Sino Particulars respondents Percentage
1 Strongly agree 35 38
2 Agree 35 38
3 Neutral 15 16
4 Disagree 4 4
5 Strongly disagree 4 4
Total 93 100
Figure 4.13 – Opinion on Elimination of Timing Constraints through Internet Banking
Interference:
From the above chart 39% of the respondents strongly agree,38% of the respondents
Agree,15% of the respondents Moderate, 4% of the respondents Disagree and 4% of the
respondents Strongly Disagree.
Have you used virtual keyboard facility to log in your account?

38. 28
Table 4.14 – Usage of Virtual Keyboard
S. No Particulars No of Respondents Percentage
1 Yes 73 80
2 No 6 6
3 Can’t say 14 14
Total 93 100
Figure 4.14 – Usage of Virtual Keyboard
Interference:
From the above chart 80% of the respondents Yes, 8% of the respondents No, and 14% of the
respondents can’t say.
If yes, mention the usage level of virtual keyboard
Table 4.15 – Usage Level of Virtual Keyboard
Sino Particulars No. of Respondents Percentage
1 Sometimes 20 27
2 Always 17 23
3 Rarely 20 27
4 Frequently 16 22
Total 73 100

39. 29
Figure 4.15 – Usage Level of Virtual Keyboard
Interference:
From the above chart 25% of the respondents are sometimes,25% of the respondents are
always, 25% of the respondents are rarely and 25% of the respondents are frequently.
Mention the satisfaction level about the secured information send through your personal
mobile.
Table 4.16 – Satisfaction Level on Secured Information sent to Mobile
Sino Particulars No of Respondents Percentage
1 Highly Satisfied 19 20
2 Satisfied 35 38
3 Neither Satisfied 25 27
nor Dissatisfied
4 Dissatisfied 10 11
5 Highly dissatisfied 4 4
Total 93 100

40. 30
Figure 4.16 – Satisfaction Level on Secured Information sent to Mobile
Interference:
From the above chart 19% of the respondents are highly satisfied, 35% of the respondents are
satisfied, 32% of the respondents are neither satisfied nor dissatisfied, 10% of the
respondents are dissatisfied and 4% of the respondents are highly dissatisfied.
Do you think the internet banking security is increasing while the transaction is combined
with internet and mobile?
Table 4.17 – Acceptance level in increase in security with Internet and Mobile Banking
Sino Particulars No. of Respondents Percentage
1 Yes 73 78
2 No 20 22
Total 93 100

41. 31
Figure 4.17 – Acceptance level in increase in security with Internet and Mobile Banking
a) Yes
b) No
If yes, mention the satisfaction level
Table 4.18 – Satisfaction level in increase in security with Internet and Mobile Banking
Sino Particulars No. of respondents Percentage
1 Highly Satisfied 20 27
2 Satisfied 20 27
3 Simply satisfied 20 27
4 Very simply satisfied 13 18
Total 73 100

42. 32
Table 4.18 – Satisfaction level in increase in security with Internet and Mobile Banking
Interference:
From the above chart 25% of the respondents are highly satisfied, 25% of the respondents
are satisfied, 25% of the respondents are simply satisfied, 25% of the respondents are Very
simply satisfied.
Mention the satisfaction about the security level before the introduction of internet banking
technology?
Table 4.19 – Satisfaction level on Security before Internet Banking
Sino Particulars No. of respondents Percentage
1 Highly Satisfied 24 26
2 Satisfied 42 45
3 Neither Satisfied nor Dissatisfied 20 22
4 Dissatisfied 7 8
5 Highly Dissatisfied 0 0
Total 93 100
Table 4.19 – Satisfaction level on Security before Internet Banking
Interference:

43. 33
From the above chart 24% of the respondents are highly satisfied, 49% of the respondents are
satisfied, 20% of the respondents are neither satisfied nor dissatisfied, 7% of the respondents
are dissatisfied and 0% of the respondents are highly dissatisfied.
Mention the satisfaction about the security level after the introduction of internet banking
technology?
Table 4.20 – Satisfaction level on Security After Internet Banking
Sino Particulars No. of respondents Percentage
1 Highly Satisfied 14 15
2 Satisfied 42 45
3 Neither Satisfied nor Dissatisfied 30 32
4 Dissatisfied 7 8
5 Highly Dissatisfied 0 0
Total 93 100
Table 4.20 – Satisfaction level on Security after Internet Banking
Interference:
From the above chart 14% of the respondents are highly satisfied, 49% of the respondents are
satisfied, 30% of the respondents are neither satisfied nor dissatisfied, 7% of the respondents
are dissatisfied and 0% of the respondents are highly dissatisfied.
My interaction with the on-line banking systems would be clear and understandable.

44. 34
Table 4.21 – Opinion on understandability of Online Banking
Sino Particulars No. of respondents Percentage
1 Strongly agree 25 44
2 Agree 20 35
3 Neutral 5 9
4 Disagree 7 12
5 Strongly disagree 0 0
Total 57 100
Figure 4.21 – Opinion on understandability of Online Banking
Interference:
From the above chart 50% of the respondents are strongly agree, 40% of the respondents
are agree, 10% of the respondents are neutral, 0% of the respondents are disagree and 0% of
the respondents are strongly disagree.
Learning to use the on-line banking systems would be easy for me.
Table 4.22 – Opinion on Easy Learning of Online Banking
Sino Particulars No. of respondents Percentage
1 Strongly agree 25 44
2 Agree 20 35
3 Neutral 5 9
4 Disagree 7 12
5 Strongly disagree 0 0

45. 35
Total 57 100
Figure 4.22 – Opinion on Easy Learning of Online Banking
Interference:
From the above chart 40% of the respondents are strongly agree, 50% of the respondents
are agree, 10% of the respondents are neutral, 0% of the respondents are disagree and 0% of
the respondents are strongly disagree.
I find the Internet Banking sites to be easy to use
Table 4.23 – Opinion on Easy Use of Online Banking
Sino Particulars No. of respondents Percentage
1 Strongly agree 14 25
2 Agree 28 49
3 Neutral 14 25
4 Disagree 1 2
5 Strongly disagree 0 0
Total 57 100

46. 36
Table 4.23 – Opinion on Easy Use of Online Banking
Interference:
From the above chart 28% of the respondents are strongly agree, 56% of the respondents
are agree, 14% of the respondents are neutral, 2% of the respondents are disagree and 0% of
the respondents are strongly disagree.
Interacting with the on-line banking will not require a lot of my mental effort.
Table 4.24 – Opinion on lesser mental effort using Online Banking
Sino Particulars No. of respondents Percentage
1 Strongly agree 25 44
2 Agree 20 35
3 Neutral 5 9
4 Disagree 7 12
5 Strongly disagree 0 0
Total 57 100

47. 37
Figure 4.24 – Opinion on lesser mental effort using Online Banking
Interference:
From the above chart 50% of the respondents are strongly agree, 40% of the respondents are
agree, 10% of the respondents are neutral, 0% of the respondents are disagree and 0% of the
respondents are strongly disagree.
Did the bank arrange any seminar programs to make their customers aware about the new
technology updating?
Table 4.25 – Seminar Programs conducted by bankers on Online Banking
Sino Particulars No. of Respondents Percentage
1 Yes 21 14
2 No 90 60
3 Can’t say 39 26
Total 150 100

48. 38
Table 4.25 – Seminar Programs conducted by bankers on Online Banking
Interference:
From the above chart 14% of the respondents are yes, 60% of the respondents are No and
26% of the respondents are can’t say.
a) Yes
b) No
c) Can’t say
Do you fully believe the internet banking facility provided by the bank?
Table 4.26 – Belief on Internet Banking
Sino Particulars No. of Respondents Percentage
1 Yes 120 80
2 No 9 6
3 Can’t say 21 14
Total 150 100

49. 39
Figure 4.26 – Belief on Internet Banking
Interference:
From the above chart 80% of the respondents are yes, 6% of the respondents are No and 14%
of the respondents are can’t say.
Are you satisfied with the time taken for a transaction for a inter bank account to other bank
account through online transaction?
Table 4.27 – Satisfaction level on Third Party Transaction Time through Internet Banking
Sino Particulars No. of respondents Percentage
1 Highly Satisfied 66 66
2 Satisfied 28 28
3 Neither Satisfied nor Dissatisfied 6 6
4 Dissatisfied 0 0
5 Highly Dissatisfied 0 0
Total 100 100

50. 40
Figure 4.27 – Satisfaction level on Third Party Transaction Time through Internet Banking
Interference:
From the above chart 66% of the respondents are highly satisfied, 28% of the respondents are
satisfied, 6% of the respondents are neither satisfied nor dissatisfied, 0% of the respondents
are dissatisfied and 0% of the respondents are highly dissatisfied.
Are you satisfied with the facility provided by the internet banking website?
Table 4.28 – Satisfaction level facilities in Internet Banking
Sino Particulars No. of respondents Percentage
1 Highly Satisfied 20 22
2 Satisfied 45 48
3 Neither Satisfied nor Dissatisfied 10 11
4 Dissatisfied 13 14
5 Highly Dissatisfied 5 5
Total 93 100

51. 41
Figure 4.28 – Satisfaction level facilities in Internet Banking
Interference:
From the above chart 23% of the respondents are highly satisfied, 49% of the respondents are
satisfied, 10% of the respondents are neither satisfied nor dissatisfied, 13% of the
respondents are dissatisfied and 5% of the respondents are highly dissatisfied.
Do you need some changes in existing internet banking website?
Table 4.29 – Need of Change in Internet Banking Websites
Sino Particulars No. of Respondents Percentage
1 Yes 63 68
2 No 20 22
3 Can’t say 10 11
Total 93 100

52. 42
Figure 4.29 – Need of Change in Internet Banking Websites
Interference:
From the above chart 70% of the respondents are yes, 20% of the respondents are No and
10% of the respondents are can’t say.
I plan to use Online Banking
Table 4.30 – Acceptance of Internet banking in near future by respondents
Sino Particulars No. of respondents Percentage
1 Strongly agree 35 35
2 Agree 40 40
3 Neutral 16 16
4 Disagree 5 5
5 Strongly disagree 4 4
Total 57 100

53. 43
Figure 4.30 – Acceptance of Internet banking in near future by respondents
Interference:
From the above chart 40% of the respondents are strongly agree, 40% of the respondents are
agree, 10% of the respondents are neutral, 6% of the respondents are disagree and 4% of the
respondents are strongly disagree.
I intend to increase my use of the on-line banking systems in the near future.
Table 4.31 – Increase in Internet banking usage in near future by respondents
Sino Particulars No. of respondents Percentage
1 Strongly agree 24 26
2 Agree 42 45
3 Neutral 20 22
4 Disagree 7 8
5 Strongly disagree 0 0
Total 93 100

54. 44
Figure 4.31 – Increase in Internet banking usage in near future by respondents
Interference:
From the above chart 24% of the respondents are strongly agree, 49% of the respondents are
agree, 20% of the respondents are neutral, 7% of the respondents are disagree and 0% of the
respondents are strongly disagree.
Internet banking does not interfere in my privacy; I find the internet banking to be secure
Table 4.32 – Satisfaction level on Security in Internet banking
No. of
Sino Particulars respondents Percentage
1 Strongly agree 21 14
2 Agree 90 60
3 Neutral 39 26
4 Disagree 0 0
5 Strongly disagree 0 0
Total 150 100

55. 45
Figure 4.32 – Satisfaction level on Security in Internet banking
Interference:
From the above chart 14% of the respondents are strongly agree, 60% of the respondents are
agree, 26% of the respondents are neutral, 0% of the respondents are disagree and 0% of the
respondents are strongly disagree.
Using the internet banking may expose me to fraud or monetary loss.
Table 4.33 – Opinion on fraudulent exposure in Internet banking
No. of
Sino Particulars respondents Percentage
1 Strongly agree 8 8
2 Agree 8 8
3 Neutral 36 36
4 Disagree 12 12
5 Strongly disagree 52 52
Total 150 100

56. 46
Figure 4.33 – Opinion on fraudulent exposure in Internet banking
Interference:
From the above chart 8% of the respondents are strongly agree, 8% of the respondents are
agree, 36% of the respondents are neutral, 12% of the respondents are disagree and 52% of
the respondents are strongly disagree.
DATA INTERPRETATION
Chi-Square Test
A chi-square test (also chi-squared or χ2 test) is any statistical hypothesis test in
which the sampling distribution of the test statistic is a chi-square distribution when the null
hypothesis is true, or any in which this is asymptotically true, meaning that the sampling
distribution (if the null hypothesis is true) can be made to approximate a chi-square
distribution as closely as desired by making the sample size large enough. For testing, any
relationship between two variables the chi square test is suitable, Chi square test – Test of
independence Chi-square (χ2) is done by using the formula:
∑ (O– E) 2 / E (4.1)
Where, O = Observed frequency
E = Expected frequency
Hypothesis of the study

57. 47
1. Chi-square analysis of employee gender and opinion about E-Banking secure options.
Hypothesis:
H0 – There is relation between employee gender and Opinion about E-Banking
secure options.
Table 4.34 - Observed Frequency
Gender Opinion about E-Banking secure options Total
Strongly Agree Neutral Disagree Strongly
agree disagree
Male 14 77 31 0 0 122
Female 7 13 8 0 0 28
Total 21 90 39 0 0 150
Table 4.35 - Expected Frequency
Gender Opinion about E-Banking secure options Total
Strongly Agree Neutral Disagree Strongly
agree disagree
Male 15 61 29 8 9 122
Female 6 9 10 2 1 28
Total 21 70 39 10 10 150
Table 4.36 – Chi-Square Analysis
S.No. Observed Expected (O-E) (O-E)^2 (O-E)^2/E
Frequency (O) Frequency (E)
1 14 15 -1 1 0.066667
2 7 6 1 1 0.166667
3 77 61 16 256 4.196721
4 13 9 4 16 1.777778
5 31 29 2 4 0.137931
6 8 10 -2 4 0.4
7 0 8 -8 64 8
8 0 2 -2 4 2
9 0 9 -9 81 9
10 0 1 -1 1 1
TOTAL 26.74576
Degrees of Freedom:
( m-1 ) * ( n-1 )
(2-1) * (5-1)

58. 48
=4
Tabulated value of degrees of freedom (4) @ 5% level of significance = 9.49
calculated value > tabulated value.
Therefore H0 is rejected.
Inference:
There is no relation between gender and opinion about E-Banking secure options.
2. Chi-square analysis of employee age and usage of internet banking facility.
Hypothesis:
H0 – There is relation between employee age and usage of internet banking
facility.
Table 4.37 - Observed Frequency
Option Age Total
18– 24 25 -31 32-38 38-44
Yes 39 42 17 2 100
No 24 15 10 1 50
Total 63 57 27 3 150
Table 4.38 - Expected Frequency
Option Age Total
18– 24 25 -31 32-38 38-44
Yes 42 41 16 1 100
No 21 16 11 2 50
Total 63 57 27 3 150
Table 4.39 – Chi-Square Analysis
S.No. Observed Expected (O-E) (O-E)^2 (O-E)^2/E
Frequency (O) Frequency (E)
1 39 42 -3 9 0.214286

59. 49
2 24 21 3 9 0.428571
3 42 41 1 1 0.02439
4 15 16 -1 1 0.0625
5 17 16 1 1 0.0625
6 10 11 -1 1 0.090909
7 2 1 1 1 1
8 1 2 -1 1 0.5
TOTAL 2.383156
Degrees of Freedom:
( m-1 ) * ( n-1 )
(2-1) * (4-1)
=3
Tabulated value of degrees of freedom (4) @ 5% level of significance = 7.82
calculated value > tabulated value.
Therefore H0 is accepted.
Inference:
There is relation between employee age and usage of internet banking facility.
CHAPTER 5
CONCLUSION
5.1 Summary of findings

60. 50
 42% of the respondents are 18-25 age, 38% of the respondents are 25 -35 age, 18% of
the respondents are 35-45 age, 2% of the respondents >45 .
 81% of the respondents are male and 19% of the respondents are female.
 4% of the respondents are 10th, 6% of the respondents are 12th, 58% of the
respondents are U.G, and 32% of the respondents are P.G.
 30% of the respondents are Students, 8% of the respondents are Government
employees, 40% of the respondents are IT sectors, and 22% of the respondents are
other private sectors.
 4% of the respondents are having monthly income below 5000, 24% of the
respondents are having monthly income between 5001 to 8000, 22% of the
respondents are having monthly income between 8001 to 12000, and 20% of the
respondents are having monthly income between 12001 to 15000, and 30% of the
respondents are having monthly income above 15000.
 6% of the respondents having bank account for below 1 year,48% of the respondents
having bank account between 1year to 3 years, 38% of the respondents having bank
account between 3years to 5years, and 8% of the respondents having bank account
for above 5years.
 67% of the respondents using internet banking and balance 33% are didn’t.
 38% of the respondents having online account for 1year and below, 28% of the
respondents having online account between 1year to 2 years, and 34% of the
respondents having online account for 2 years and above.
 50% of the respondents are using internet banking services for more than once a
week, 20% of the respondents are having once a week, 10% of the respondents are
having once every 2 weeks, 10% of the respondents are having once a month and
10% of the respondents are having by other.

61. 51
 35% of the respondents are using on-line banking systems by online bill payment,
20% of the respondents are using by fund transfer, 5% of the respondents are using by
checkbook application, 10% of the respondents are using by Summary reports of
transaction and 10% of the respondents are using by account information and balance
enquiry, 10% of the respondents are using by Share margin trading account, 10% of
the respondents are none.
 24% of the respondents are totally agree with improves their performance on their
online banking ,49% of the respondents are Agree,20% of the respondents neutral,7%
of the respondents are Disagree and 0% of the respondents are Strongly Disagree.
 Response for the satisfaction about,online banking is easier to conduct transactions,
8% of the respondents are strongly agree,52% of the respondents are Agree,20% of
the respondents are neutral , 20% of the respondents are Disagree and 0% of the
respondents Strongly Disagree.
 Using of virtual keyboard facility to log in the account, 80% of the respondents say
yes, 8% of the respondents said No, and 14% of the respondents can’t say.
 Usage level of virtual keyboard, 25% of the respondents are using sometimes,25% of
the respondents are using always, 25% of the respondents are using rarely and 25%
of the respondents are using frequently.
 Response for the satisfaction about the secured information send through personal
mobile, 19% of the respondents are Highly Satisfied,35% of the respondents are
Satisfied,32% of the respondents are Neither Satisfied nor Dissatisfied, 10% of the
respondents are Dissatisfied and 4% of the respondents are Highly dissatisfied.
 Response for the satisfaction about the security level before the introduction of
internet banking technology, 24% of the respondents are highly satisfied, 49% of the
respondents are satisfied, 20% of the respondents are neither satisfied nor dissatisfied,
7% of the respondents are dissatisfied and 0% of the respondents are highly
dissatisfied.

62. 52
 Response for the satisfaction about the security level after the introduction of internet
banking technology, 14% of the respondents are highly satisfied, 49% of the
respondents are satisfied, 30% of the respondents are neither satisfied nor dissatisfied,
7% of the respondents are dissatisfied and 0% of the respondents are highly
dissatisfied.
 Response about the online banking system should be clear and understandable to the
people, 50% of the respondents are strongly agree,40% of the respondents are
Agree,10% of the respondents are neutral , 0% of the respondents are Disagree and
0% of the respondents Strongly Disagree.
 Response for the online banking is easy, 40% of the respondents are strongly agree,
50% of the respondents are agree, 10% of the respondents are neutral, 0% of the
respondents are disagree and 0% of the respondents are strongly disagree.
 Response for that Internet banking is easy to use, 28% of the respondents are strongly
agree, 56% of the respondents are agree, 14% of the respondents are neutral, 2% of
the respondents are disagree and 0% of the respondents are strongly disagree.
 Awareness about the seminar programs to make the customers to know about the
technology updating, 14% of the respondents said yes, 60% of the respondents said
No and 26% of the respondents can’t say.
 Fully believe the internet banking facility provided by the bank, 80% of the
respondents said yes, 6% of the respondents said No and 14% of the respondents
can’t say.
 Response for the time taken for a transaction for a inter bank account to other bank
account through online transaction, 66% of the respondents are highly satisfied, 28%
of the respondents are satisfied, 6% of the respondents are neither satisfied nor
dissatisfied, 0% of the respondents are dissatisfied and 0% of the respondents are
highly dissatisfied.

63. 53
 Satisfaction with the facility provided by the internet banking website, 23% of the
respondents are highly satisfied, 49% of the respondents are satisfied, 10% of the
respondents are neither satisfied nor dissatisfied, 13% of the respondents are
dissatisfied and 5% of the respondents are highly dissatisfied.
 Need some changes in existing internet banking website, 70% of the respondents said
yes, 20% of the respondents said No and 10% of the respondents can’t say.
 Plan to use Online Banking, 40% of the respondents are strongly agree, 40% of the
respondents are agree, 10% of the respondents are neutral, 6% of the respondents are
disagree and 4% of the respondents are strongly disagree.
 Intend to increase use of the on-line banking systems in the near future, 24% of the
respondents are strongly agree, 49% of the respondents are agree, 20% of the
respondents are neutral, 7% of the respondents are disagree and 0% of the
respondents are strongly disagree.
5.2 Suggestions
 The awareness and the usage level of virtual keyboard facility to log the internet
banking account is less. It should be increased, because virtual key board facility is
safer than ordinary keyboard usage.
 The security provided by the bank regarding internet banking transaction should be
improved. The mobile phone used in transaction details increase the security of
transaction.
 The security level in the internet banking should be increased.
 The bank should encourage the internet banking usages.
 The bank should arrange seminar programs to make their customers aware about the
new technology updating.
 Internet banking facility provided by the bank should be increased from the
customer’s point of view.

64. 54
 Time taken for a transaction for a inter bank account to other bank account through
online transaction should be minimized.
5.3 Conclusion
Analysis shows that even though the internet banking facility is having many
advantages, it is not utilized by many people. It shows that the younger generation people are
more likely to use the Internet banking facilities frequently when compared to the middle age
and old age people. It is due to the unawareness of the customers towards the internet
banking facility. Also, the people are finding difficulties in using the Internet banking
websites which had created an aversion in them towards net banking. This can be overcome
if the Banks conduct sessions on the various features provided in their Online banking web
sites. Even among the younger generation people, it is found that many are feeling insecure
to use the online transaction facilities provided by the banks. The internet banking
technology should be made more secure so as to eliminate this constraint among the
customers. Hence by this study we have found out the various factors that restrict the usage
of internet banking among the customers. Through this study suggestive methods to
overcome these factors to increase the usage of Internet Banking facilities have also been
found.

65. 55
CHAPTER 6
APPENDIX
6.1 Questionnaire
The Following questionnaire was used for the data collection:
Instructions: For Questions having a rating scale of 1-5, state your agreement based on
the following scales:
1- Highly Dissatisfied
2- Dissatisfied
3- Neutral
4- Satisfied
5- Highly Satisfied
Select the applicable scale with red colour (e.g. 1). After filling the questionnaire save
the filled one and send it back.
Age:
a) 18-25
b) 25-35
c) 35-45
d) > 45
Gender:
a) male
b) Female
Education:
a) 10th
b) 12th
c) U.G
d) P.G
Occupation
a) Student
b) Government employee
c) IT sector
d) Other private sectors

66. 56
Monthly Income (in Rupees)
a) <5000
b) 5001 - 8000
c) 8001- 12000
d) 12001-15000
e) >15000
1. How long you have a bank account?
a) <1yr
b) 1yr – 3 yrs
c) 3yrs – 5yrs
d) >5yrs
2. How long you have an online account?
a) <1yr
b) 1yr – 2 yrs
c) >2 yrs
3. Do you use Internet Banking?
a) Yes
b) No
If yes, go to Question 4
If No, go to Question 14
4. How often do you use Internet Banking services?
a) More than once a week
b) Once a week
c) Once every 2 weeks
d) Once a month
e) Other
5. Which of the following services used by you through the on-line banking systems? (You
can tick more than 1)
a) On-line bill payment
b) Fund transfer
c) Checkbook Application

67. 57
d) Summary Reports of transactions
e) Account Information and balance enquiry
f) Share margin trading Account
g) None
6. Have you used virtual keyboard facility to log in your account?
a) Yes
b) No
If yes, mention the usage level of virtual keyboard
• sometimes
• always
• rarely
• frequently
7. Using the on-line banking systems would improve my performance in 1 2 3 4 5
conducting banking transactions.
8. Using the on-line banking systems would make it easier for me to conduct 1 2 3 4 5
banking transactions
9. On-line banking eliminates time constraints; thus I can use the banking 1 2 3 4 5
services at any time I like.
10 Mention the satisfaction level about the secured information send through 1 2 3 4 5
. your personal mobile.
11 Do you think the internet banking security is increasing while the transaction 1 2 3 4 5
. is combined with internet and mobile?
12 Mention the satisfaction about the security level before the introduction of 1 2 3 4 5
. internet banking technology?
13 Mention the satisfaction about the security level after the introduction of 1 2 3 4 5
. internet banking technology?
14
I find the Internet Banking sites to be easy to use
.
15 My interaction with the on-line banking systems would be clear and 1 2 3 4 5
. understandable.
16 Learning to use the on-line banking systems would be easy for me. 1 2 3 4 5
17 Interacting with the on-line banking will not require a lot of my mental 1 2 3 4 5
. effort.

68. 58
18 I could conduct my banking transactions using the on-line banking systems if 1 2 3 4 5
. I had only the systems manuals for reference.
19 I could conduct my banking transactions using the on-line banking systems if 1 2 3 4 5
. I had seen someone else using it before trying it myself.
20 I could conduct my banking transactions using the on-line banking systems if 1 2 3 4 5
. I could call someone else for help if I got stuck.
21 I could conduct my banking transactions using the on-line banking systems if 1 2 3 4 5
. someone shows me how to do it first.
25 Are you satisfied with the time taken for a transaction for a inter bank account 1 2 3 4 5
. to other bank account through online transaction?
26 1 2 3 4 5
Using the internet banking may expose me to fraud or monetary loss.
.
27 1 2 3 4 5
Are you satisfied with the facility provided by the internet banking website?
.
28 1 2 3 4 5
I plan to use Online Banking
.
29 I intend to increase my use of the on-line banking systems in the near future. 1 2 3 4 5
.
30 Internet banking does not interfere in my privacy, I find the internet banking 1 2 3 4 5
. to be secure
REFERENCES
1. Aladwani, A.M. (2001). Online banking: a field study of drivers, development challenges,
and expectations International Journal of Information Management, Vol. 21, pp. 213–225