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A

PROJECT REPORT

ON

E-BANKING SERVICE FROM CUSTOMER PERSPECTIVE

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

TO

PUNJAB TECHNICAL UNIVERSITY,JALANDHAR

SUBMITTED BY:

AASTHA WADHWA

94512236879

SUBMITTED TO:

DR. NAVJOT KAUR

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ACKNOWLEDGEMENT

Words often fail to express ones inner feeling of indebtedness. Infact

words are not proper media for this purpose.

It is my proud privilege to express my profound indebtedness and deep

sense of gratitude to Dr. Navjot Kaurwho has been kind enough to impart

his inspiring advice and valuable guidance to me during my research

work.

She provided her untiring efforts and encouragement throughout my

research period inspite of her busy schedule.

(Aastha Wadhwa)

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DECLARATION

This i s to cert ify tha t the projec t en ti tl ed E-Banking services from

customer perspective Submitted by AASTHA WADHWA is a bonafide

piece of work conducted under my supervis ion and guidance. I t may be

considered for evaluation in partial fulfillment of the degree of Masters of

Business Administration.

(DR.NAVJOT KAUR)

Project Guide

\

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PREFACE

The tremendous advance in technology and the aggressive infusion of

information technology has brought in a paradigm shift in bankingoperations. Internet banking that has revolutionized the banking industry

world wide has turned out to be the nucleus issue of various studies all

over the world. However there has constantly been a literature gap on the

issue in India. The purpose of the paper is to help fill significant gaps in

knowledge about the Internet banking landscape in India. The paper

presents data, drawn from a survey of private, foreign and public banks

that offer Internet banking and on the products and services they offer,

investigates the profile of banks that offer Internet banking using various

statistical analyses, relative to above mentioned banks with respect to

competitive analysis.

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TABLE OF CONTENT

Chapter Page No

1 INTRODUCTION 6-13

2 REVIEW OF LITERATURE 14-18

3 RESEARCH METHODOLOGY 19-21

4 PROFILES OF VARIOUS BANKS 22-31

5 COMPARISION OF VARIOUS BANKS 32-44

6 ANALYSIS AND INTERPRETATION 45-60

7 CONCLUSION & SUGGESTIONS 61-68

8 BIBLIOGRAPHY 69

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CHAPTER - 1

INTRODUCTION

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INTRODUCTION

Earlier people would be tired standing in along queue waiting for a passbook to be

updated or they would wait for the next day for the demand draft to be prepared but now

Internet Technology has invaded the portals of our banking institutions and as the clich

goes everything will just be a click away. No doubt, innovations like telebanking and

automated teller machines (ATMs) have considerably put customers at ease on the

recent past. But with net banking the customer will be able to transact with the help of a

mouse and his visits to the neighborhood bank will become a thing of the past.

In the age of electronic technology the regular application of computing, wireless

communication, networking, etc, in the banking field has brought revolutionary change in

the traditional ways banks do business. Today, your bank can serve you at home, or allow

you to serve yourself from anywhere. You can draw your money from ATMs, you can

check your accounts through the Internet, and you can phone the bank to send you a

representative. Not only that, your physical bank which is still around-suddenly seems to

be doing a lot more things than just banking. It is technology that is making all this

possible. Internet banking has gained wide acceptance internationally and seems to be

fast catching up in India with more and more banks entering the fray. This is why, most,

most modern banks instead of merely dealing with financial deposits and loan apply

promote, and distribute the want-satisfying products, services and ideas to start its

journey towards development of computer and other technology based digital economy

since 1960 to ensure quality service to its customers.

TECHNOLOGY THE GOVERNING FACTOR:

It is the technology that is making easy operation of banks. Even 10 years back, banks

would have found it impossible to provide even basic banking services tomillions of

small and medium customers with all their branches. At the back end technology is

freeing bank employees to concentrate on value-added work rather than just mundane

necessities. Today, technology offers options where banks can almost literally address a

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market of one with a customized product or service. Though a modest start has been

made in India, net banking has still a long way to go. This development has been

acknowledged by the latest Online Banking Report, which features a listing for ICICI

Bank .Some others have also endeavored to make real time banking a reality before this

century closes. Reasons why new private and multi-national banks have been able to

survive, thrive, and adapt in an increasingly competitive space.

These banks were able to leverage on low-cost channels such as ATMs and Net Banking

to the optimum levels contributing to reduced operating costs. The cost of transactions

over channels like ATMs and the Internet are lower than doing it through the branches-

Banks have realized that shifting customer access to lower cost channels can help bring

down operating costs. These channels are used not only to improve customer service but

also to divert traffic from the branches.

Customers using ATMs, phones and the Internet not only allow banking transactions,

but also cross-selling of other financial products and services. For example, if the cost of

a branch banking transaction is taken at Rs100/-, the cost of an ATM transaction would

be around Rs30/-, phone banking around Rs20/-, and internet banking around Rs5/-.But

this does not mean that branch banking is obsolete. Rather, banks are reinventing their

business models to offer new financial services through its branches.

NEW HORIZONS

The important factor that is causing a shift in the industry is that of conveniences for the

consumer. People need timely access to banking services, and have less time to spend at

banks, and prefer the convenience of long distance banking. Of course, societys view of

what is convenient is changing .People were accustomed to associating convenience with

doing business in their neighbourhood, and not traveling to a bank across town. Now,

however, society has a different definition of bank convenience. Also, we should mention

it is directly due to mergers that banks are able to offer more full service branches, and

ATM machines. This is more convenient to the customers, and creates bank loyalty.

The various banks which have adopted with corporate giving software and solution and

services as of date are as follows: *

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BANK NAME TECHNOLOGY

VENDOR

SERVICE OFFERING

ABN AMRO Bank Infosys (Bank Away) Net Banking

Abu Dhabi Commercial

Bank

Infosys (Bank Away) ADCB NetLink

Bank of India I-Flex BOIonline

Centurian Bank Logica MyCBOL

Citibank Orbitech (now Polaris) Citibank Online

Corporation Bank I-Flex CorpNet

Deutche Bank Db direct

Federal Bank Sanchez FedNet

Global Trust Bank Infosys (Bank Away) ibank@gtb

HDFC Bank i-flex / Satyam NetBanking

HSBC Online@hsbc

ICICI Bank Infosys, ICICI Infotech Infinity

IDBI Bank Infosys (Bank Away) i-net banking

IndusInd Bank CR2 IndusNet

Punjab National Bank Infosys (Bank Away)

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Standard Chartered Bank In-House Me Standard Chartered

Online

State Bank of India Satyam / Broadvision Onlinesbi.com

UTI Bank Infosys (Bank Away) Iconnect

DEFINITION OF E-BANKING

E-banking is defined as the automated delivery of new and traditional banking products

and services directly to customers through electronic, interactive communication

channels. E-banking includes the systems that enable financial institution customers,

individuals or businesses, to access accounts, transact business, or obtain information on

financial products and services through a public or private network, including the

Internet. Customers access e-banking services using an intelligent electronic device, such

as a personal computer (PC), personal digital assistant (PDA), automated teller machine

(ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the

various e-banking access channels, this booklet focuses specifically on Internet-basedservices due to the Internets widely accessible public network. With technology having

played a significant role in the development of newer modes of payment and settlement,

many banks have introduced innovative products such as e-banking and e-payments.

Simply put, e-banking is the process of conduct of banking with the use of electronic

tools and facilities. The service-based areas of activity of banks have perhaps been the

largest beneficiary of e-banking. Internet banking has been the predominant mode of e-

banking in India with the Internet offering itself as a new delivery mechanism for the

banks in reaching the customer.

Commencing with simple transactions such as enquiry facilities, today messages sent

through the internet to banks perform tasks such as funds transfer and account opening.

Internet banking, however, necessitates that banks have a secure web server and a

centralised data base of their customers to facilitate information flow from customers to

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the bank and vice versa. While some banks already have systems to meet this

requirement, others are at various stages of implementation.

Common E-Banking Services

Retail Services Wholesale Services

Account management Account management

Bill payment and

presentmentCash management

New account opening Small business loan applications,

approvals, or advancesConsumer wire transfers

Investment/Brokerage

servicesCommercial wire transfers

E-BANKING COMPONENTS

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

factors. Financial institutions should choose their e-banking system configuration,

including outsourcing relationships, based on four factors:

Strategic objectives for e-banking

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

Expertise

Security and internal control requirements

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Financial institutions may choose to support their e-banking services internally.

Alternatively, financial institutions can outsource any aspect of their e-banking

systems to third parties. The following entities could provide or host (i.e.,

allow applications to reside on their servers) e-banking-related services for

financial institutions:

Another financial institution

Internet service provider

Internet banking software vendor or processor

Core banking vendor or processor,

Managed security service provider

Bill payment provider

E-banking systems rely on a number of common components or processes. The following

list includes many of the potential components and processes seen in a typical institution:

Website design and hosting

Firewall configuration and management

Intrusion detection system or IDS (network and host-based),

Network administration

Security management

Internet banking server

E-commerce applications (e.g., bill payment, lending, brokerage

Internal network servers

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Core processing system

Programming support

Automated decision support systems

THE SERVICES, WHICH CAN BE AVAILED AS OF DATE, ARE:

Transfer ones money from one city to any other branch in a city.

Open a Fixed deposit (FD) account via the net. One needs to provide data

regarding the amount and term of the deposit and also the branch in which the

account is opened. Order for an issue of a demand draft can be delivered only to the customers

address and not to any other party.

Inquire on the balance in ones saving , current and FD account and also on the

tax deducted at source on ones FD account for the current and financial year.

Give instructions over the net for stopping payment on a cheque/s .-Request for a

chequebook via the Internet , which will take three days to come.

View all the transactions completed on an account for a specified period and get a

copy via e-mail.

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CHAPTER -2

REVIEW OF LITERATURE

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There have already been a number of studies related to Internet banking covering a range

of research dimensions.

Pyun et al. (2002) assessed the status of Internet banking in the U.S., Japan and Europe,

Guar (2001) investigated Internet banking in Romania, and Waite and Harrison (2002)

explored factors contributing to customer satisfaction and dissatisfaction with the online

information provided by retail banks. Research on the adoption of Internet banking has

been also active in the past few years. A significant part of this work has also focused on

the process by which adoption occurs or the demand aspect of diffusion (Brown, 1981;

Roger, 1995). In a study on the adoption of Internet banking in Australia, Sathye (1999)

reported that security concerns and the lack of awareness stand out as the main reasons

for the failure to adopt Internet banking by customers. Polatoglu and Ekin (2001)

undertook a similar study on the acceptance of Internet banking services in Turkey while

Balachandher et al (2000) examined the factors that affect the adoption of Internet

banking in Malaysia.

Jun and Cai (2001) attempted to identify key quality attributes of the Internet banking

products and services by analyzing Internet banking customers comments on their

banking experiences. Finally, Howcroft et al (2002) explored consumers existing

financial services behaviour and assessed their attitudes towards home-based services,i.e., telephone and Internet banking. Howcroft et al (2002) concluded that branch

networks are still the most popular delivery channel in the acquisition of current

accounts, credit-based and investment-based services.

Koedrabruen et. Al. (2002) investigated, designed and developed an internet based retail

banking prototypethat meets the requirements of Thai customers. It found that more than

half of the sample Internet users in Thailand are very interested in using Internet services.

The main features needed are balance inquiry, bill payement, fund transfer, business

information, and payement for goods purchased. The prototype was then developed and

validated. The survey from the executives of four Thai banks revealed that there was a

potential growth for retail Internet Banking in Thailand.

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Unnithan t. al.(2001) studied the drivers for change in the evolution of banking sector

and the move towards electronic banking by focusing on two economies Australia and

India. The paper found that Australia is the country with internet ready infrastructure as

far as telecommunication, secure protocols PC penetration and computer literacy is

concerned. India by comparison is weak infrastructure, low PC penetration, developing

security protocols and consumer reluctance in rural sector. Although many banks have

started internet banking services the slow pace will continue until the critical mass is

achieved for PC, inherent connections and telephones. The economy is classically trying

to develop and catch up with leading economies.

Bajpai, G.N. Banking, Insurance and Financial Sector: A vision of the future says that

the opportunity zone in financial markets are contracting somewhere and at sometime

expanding elsewhere. Both change and the pace of change in financial markets would be

different tomorrow. Continuous exploration of scopes and of values would demand a

billion offer on emerging opportunities, building competence, strategies for leadership

positions in opportunity zone and principles centered business practices.

Rao et. Al.(2003) provide a theoretical analysis of internet banking in India and found

that as compared to banks abroad India banks offering online services still have a long

way to go. For online banking to reach a critical mass, there has to be sufficient number

of users and the sufficient infrastructure in place. The purpose of this study is to find the

problem of customer regarding net banking. There are series of papers that observe that

internet banking has revolutionized the banking industry and it is under pressure to offer

new products and services. However to succeed in today electronic markets a strategic

and focus approach is required.

Sajid Khan, Survey of critical success factors in e-banking: The organizational

factors, which are critical to the success of e-banking, are investigated. Different pieces

of literature report different factors as key to success and generally based on subjective,

perceptual data. A synthesis of existing literature is a basis for survey questions. The data

was collected from UK based financial sector organisations who are offering their

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services on electronic channels, using postal questionnaires. The top factors found to be

most critical for the success in e-banking are: quick responsive products/services,

organizational flexibility, services expansion, systems integration and enhanced customer

service. An important lesson from this research is that organisations need to view the e-

banking initiative as a business critical area rather that just a technical issue. They need to

give attention to internal integration, which may include channels, technology and

business process integration, and improving the overall services to their customers.

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CHAPTER 3

RESEARCH METHODOLOGY

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Objectives

To access the present scenario of the services of E-Banking.

To study the scope of E-Banking in future.

To study the problem faced by the consumers in availing the Banking Services.

To check the satisfaction level of customers for using Net Banking Services.

To get feedback from customers regarding usage improvement of Net Banking.

Problem Defining: The project was mainly concerned with evaluating the performance

of Internet Banking Services and finding out the scope of Internet Banking Services by

doing a comparative analysis of the Internet Banking Services provided by ICICI BANK,

SBI BANK, HDFC BANK.

Sample Unit: Individuals who are availing Internet Banking Services.(Rajpura)

Sample Size: 40 respondents

Sampling Method: Non-Probabilistic convenience sampling.

Sources of Data: The data was collected from both primary and secondary sources.

Primary Data: The primary data collection was done through the survey method. The

survey was conducted using the questionnaire method.

Secondary Data: Secondary data was collected from the following sources:

a) Books on Internet Bankingb) Internet

c) Journals

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Limitations of the study

1. Time constraints was the main limitation of the study

2. Sample size is not significant as it is very small.

3. As in this study convenient sampling is used which shows biasness.

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CHAPTER-4

PROFILE OF VARIOUS BANKS

Imperial Bank of India

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When India attained freedom, the Imperial Bank had a capital base (including reserves)

of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores

respectively and a network of 172 branches and more than 200 sub offices extending all

over the country.

In 1951, when the First Five Year Plan was launched, the development of rural India was

given the highest priority. The commercial banks of the country including the Imperial

Bank of India had till then confined their operations to the urban sector and were not

equipped to respond to the emergent needs of economic regeneration of the rural areas. In

order, therefore, to serve the economy in general and the rural sector in particular, the All

India Rural Credit Survey Committee recommended the creation of a state-partnered and

state-sponsored bank by taking over the Imperial Bank of India, and integrating with it,

the former state-owned or state-associate banks. An act was accordingly passed in

Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955.

More than a quarter of the resources of the Indian banking system thus passed under the

direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was

passed in 1959, enabling the State Bank of India to take over eight former State-

associated banks as its subsidiaries (later named Associates).

The State Bank of India was thus born with a new sense of social purpose aided by the

480 offices comprising branches, sub offices and three Local Head Offices inherited from

the Imperial Bank. The concept of banking as mere repositories of the community's

savings and lenders to creditworthy parties was soon to give way to the concept of

purposeful banking subserving the growing and diversified financial needs of planned

economic development. The State Bank of India was destined to act as the pacesetter in

this respect and lead the Indian banking system into the exciting field of national

development.

TECHNOLOGY UPGRADATION HIGHLIGHTS

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SBIs Information Technology Programme aims at achieving efficiency in operations,

meeting customer and market expectations and facing competition. Our achievements are

summarized below:*

FULL BRANCH COMPUTERISATION (FCBs): All the branches of the Bank are

now fully computerized. This strategy has contributed to improvement in customer

service.

ATM SERVICES: There are 4633 ATMs on the ATM Network including 3181 ATMs

of SBI and 1452 from the 7 Associate Banks and Subsidiaries. These ATMs are located

in 1521 centres spread across the length and breadth of the country, thereby creating a

truly national network of ATMs with an unparalleled reach. Value added services like

ATM locator, payment of fees for college students, multilingual screens, voice over and

drawal of cash advance by SBI credit card holders have been introduced.

INTERNET BANKING (INB): This on-line channel enables customers to access their

account information and initiate transactions on a 24x7, boundary less basis. 1994

branches, covering 555 centres, are extending INB service to their customers. All

functionalities other than Cash and Clearing have been extended to individual retail

customers. A separate Internet Banking Module for Corporate customers has been

launched and available at 1305 branches. Bulk upload of data for Corporate, Inter-branch

funds transfer for Retail customers, online payment of Customs duty and Govt. tax,

Electronic Bill Payment, SMS Alerts, E-Poll, IIT GATE Fee Collection, Off-line

Customer Registration Process and Railway Ticket Booking are the new features

deployed.

GOVT. BUSINESS: Software has been developed and rolled out at 7785 fully

computerized branches. Electronic generation of all reports for reporting, settlement and

reconciliation of Govt. funds, is available.

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Core Banking : The Core Banking Solution provides the state-of-the-art anywhere

anytime banking for our customers. The facility is available at 574 branches.

Trade Finance: The solution has been implemented, providing efficiency in handling

Trade Finance transactions with Internet access to customers and greatly enhances the

banks services to Corporates and Commercial Network branches. This new Trade

Finance solution, EXIMBILLS, will be implemented at all domestic branches as well as

at Foreign offices engaged in trade finance business during the year.

WAN: The bank has set up a Wide Area Network, known as SBI connect, which

provides connectivity to 4819 branches/offices of SB Group across 306 cities. This

network provides across the board benefits by providing nationwide connectivity for its

business applications.

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PROFILE OF HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was amongst the first

to receive an 'in-principle' approval from the Reserve Bank of India (RBI) to set up a

bank in the private sector, as part of the RBI's liberalisation of the Indian Banking

Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank

Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations

as a Scheduled Commercial Bank in January 1995.

Promoter

HDFC is India's premier housing finance company and enjoys an impeccable track record

in India as well as in international markets. Since its inception in 1977, the Corporation

has maintained a consistent and healthy growth in its operations to remain a market

leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling

units. HDFC has developed significant expertise in retail mortgage loans to different

market segments and also has a large corporate client base for its housing related credit

facilities. With its experience in the financial markets, a strong market reputation, large

shareholder base and unique consumer franchise, HDFC was ideally positioned to

promote a bank in the Indian environment.

Business Focus

HDFC Bank's mission is to be a World-Class Indian Bank. The Bank's aim is to build

sound customer franchises across distinct businesses so as to be the preferred provider of

banking services in the segments that the bank operates in and to achieve healthy growth

in profitability, consistent with the bank's risk appetite. The bank is committed to

maintain the highest level of ethical standards professional integrity and regulatory

compliance. HDFC Bank's business philosophy is based on four core values: Operational

Excellence, Customer Focus, Product Leadership and People.

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Business Profile

HDFC Bank caters to a wide range of banking services covering commercial and

investment banking on the wholesale side and transactional / branch banking on the retail

side. The bank has three key business areas :-

a) Wholesale Banking Services

The Bank's target market is primarily large, blue-chip manufacturing companies

in the Indian corporate sector and to a lesser extent, emerging mid-sized

corporates. For these corporates, the Bank provides a wide range of commercial

and transactional banking services, including working capital finance, tradeservices, transactional services, cash management, etc. The bank is also a leading

provider of structured solutions which combine cash management services with

vendor and distributor finance for facilitating superior supply chain management

for its corporate customers. Based on its superior product delivery / service levels

and strong customer orientation, the Bank has made significant inroads into the

banking consortia of a number of leading Indian corporates including

multinationals, companies from the domestic business houses and prime Public

Sector companies. It is recognised as a leading provider of cash management and

transactional banking solutions to corporate customers, mutual funds, stock

exchange members and banks.

b) Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range

of financial products and banking services, giving the customer a one-stop window

for all his/her banking requirements. The products are backed by world-class service

and delivered to the customers through the growing branch network, as well as

through alternative delivery channels like ATMs, PhoneBanking, NetBanking and

MobileBanking.

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c) Treasury Operations

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the

liberalisation of the financial markets in India, corporates need more sophisticated risk

management information, advice and product structures. These and fine pricing on

various treasury products are provided through the bank's Treasury team. To comply with

statutory reserve requirements, the bank is required to hold 25% of its deposits in

government securities. The Treasury business is responsible for managing the returns and

market risk on this investment portfolio.

Innovative services for your convenience...

PhoneBanking: 24-hour automated banking services with 39 PhoneBanking numbers

available.

ATM 24-hour banking: Apart from routine transactions, the customer can also pay

his/her utility bills and transfer funds, at any of the banks ATMs across the country all

year round.

Inter-city/Inter-branch Banking:The customer can access his/her account from any of the

banks 451 branches in 205 cities.

NetBanking: The customer can access his/her bank account from anywhere in the world,

at anytime, at his/her own convenience. The customer can also view his/her Demat

Account through NetBanking.

International Debit Card: With an ATM card the customer can shop with all over the

country and in over 140 countries with. The customer can spend in any currency, and pay

in Rupees.

MobileBanking: The customer can access his/her account on his/her mobile phone screen

at no airtime cost. The customer can use SMS technology to conduct his/her banking

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transactions from his/her cellphone.

BillPay: The customer can pay his/her telephone, electricity and mobilephone bills

through the banks ATMs, Internet, phone or mobile phone.

International Credit Card: The customer can get an option of Silver, Gold, or Health Plus

Credit card, accepted worldwide from a world-class bank. If the the customer has an

outstanding balance on his/her credit card the customer can transfer that balance to this

card at a lower interest rate.

NRI Services: A comprehensive range, backed by unmatched features and world-class

service, ensures NRIs all the banking support they need.

Forex Facilities: The customer can avail foreign currency, travellers cheques, foreign

exchange demand drafts, to meet his/her travel needs.

Insurance*: HDFC Bank now brings its customers Life Insurance and Pension Solutions

like Risk Cover Scheme, Savings Scheme, Childrens Plan and Personal Plan from

HDFC Standard Life Insurance Co. Ltd.

.

PROFILE OF ICICI BANK

ICICI Bank is India's second-largest bank with total assets of about Rs.146,214 crore at

December 31, 2004 and profit after tax of Rs. 1,391 crore in the nine months ended

December 31, 2004 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about

505 branches and extension counters and about 1,850 ATMs. ICICI Bank offers a wide

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range of banking products and financial services to corporate and retail customers

through a variety of delivery channels and through its specialized subsidiaries and

affiliates in the areas of investment banking, life and non-life insurance, venture capital

and asset management. ICICI Bank set up its international banking group in fiscal 2002

to cater to the cross-border needs of clients and leverage on its domestic banking

strengths to offer products internationally. ICICI Bank currently has subsidiaries in the

United Kingdom and Canada, branches in Singapore and Bahrain and representative

offices in the United States, China, United Arab Emirates and Bangladesh.*

ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the

National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)

are listed on the New York Stock Exchange (NYSE).

As required by the stock exchanges, ICICI Bank has formulated a Code of Business

Conduct and Ethics for its directors and employees.

At October 31, 2004, ICICI Bank, with free float market capitalisation* of about Rs.

220.00 billion (US$ 5.00 billion) ranked third amongst all the companies listed on

the Indian stock exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity

offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition

of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary

market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was

formed in 1955 at the initiative of the World Bank, the Government of India and

representatives of Indian industry. The principal objective was to create a development

financial institution for providing medium-term and long-term project financing to Indian

businesses. In the 1990s, ICICI transformed its business from a development financial

institution offering only project finance to a diversified financial services group offering a

wide variety of products and services, both directly and through a number of subsidiaries

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and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the

first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards

universal banking, the managements of ICICI and ICICI Bank formed the view that the

merger of ICICI with ICICI Bank would be the optimal strategic alternative for both

entities, and would create the optimal legal structure for the ICICI group's universal

banking strategy. The merger would enhance value for ICICI shareholders through the

merged entity's access to low-cost deposits, greater opportunities for earning fee-based

income and the ability to participate in the payments system and provide transaction-

banking services. The merger would enhance value for ICICI Bank shareholders througha large capital base and scale of operations, seamless access to ICICI's strong corporate

relationships built up over five decades, entry into new business segments, higher market

share in various business segments, particularly fee-based services, and access to the vast

talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of

ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail

finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital

Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI

and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March

2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in

April 2002. Consequent to the merger, the ICICI group's financing and banking

operations, both wholesale and retail, have been integrated in a single entity.

*Free float holding excludes all promoter holdings, strategic investments and cross

holdings among public sector entities.

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CHAPTER-5

COMPARISON OF VARIOUS

E-BANKING SERVICES

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COMPARISON OF VARIOUS INTERNET BANKING SERVICES

PROVIDED BY ICICI BANK, SBI BANK AND HDFC BANK :

1. BILL PAYMENT

ICICI BANK

ICICI Bank has tied up with more than 60 organizations across the country to facilitate

payment of bills for Utility Companies (Electricity and Telephone) Bills, ICICI Bank

credit card, Mobile Phone and Insurance Premium bills.

For the customers ease the bank has enabled the billers in following two modes:

Presentment Type Billers: For these billers, the bill amount and due date will be

presented to the customers online on http://www.icicibank.com/ and a reminder

will be sent to them on Email.

Payment Type Billers: For these billers the customers can register and pay any

amount immediately

SBI BANK

SBI e-PAY - It provides a simple and convenient service for receiving and paying of

bills online

OnlinePay: By using SBI e-PAY the customers can 'see and pay' their various bills

online, directly from their SBI Account. The customers can pay telephone, electricity,

insurance, credit card and other bills - from the comfort of their house or office, 24 hours

a day, 365 days a year! They will have to just logon to http://www.onlinesbi.com/ to 'see

and pay' their bills. They will also get an electronic acknowledgment for every bill paid

by them using e-PAY.

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AutoPay: The customers can also set up AutoPay instructions with an upper limit to

ensure that their bills are paid automatically whenever they are due. The upper limit

ensures that only bills within the specified limit are paid automatically, thereby

providing the customers complete control over these payments.

HDFC BANK

HDFC Bank provides the luxury of paying its customers telephone, electricity and

mobile phone bills at their convenience. Through the Internet, ATMs, your mobile phone

and telephone. LIC insurance premiums can also be paid through this facility.

It is better for the residents of Hyderabad or Secunderabad and registered for Hdfc

NetBanking service. Thanks to the banks tie-up with eseva, a unique integrated service

launched by the government of Andhra Pradesh, now these residents can pay their

electricity bills, water bills and municipal taxes (telephones to be introduced shortly)

through the Internet using the Direct Debit option. The most important aspect of this

service is that the payments made are updated in the database of the utility companies on

an online and real-time basis.

2. ONLINE SHOPPING

ICICI BANK

ICICI Bank has tied up with more than 75 organizations to facilitate online

shopping for all its Internet Banking Customers. They can now choose their products

online and pay conveniently through ICICI Bank Internet Banking Service.

ICICI Bank has teamed up with four partners to buy various products/ services

online.

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ICICI Bank has brought Insurance products to ones door-step. Now one can buy

Insurance products from ICICI Lombard General Insurance and pay through

ICICI Banks Internet Banking.

ICICI Bank has teamed up with AIR DECCAN SIMPLIFY so one can now Book

his/her Air Tickets online and pay through Internet Banking.

ICICI Bank has teamed up with INDIAN RAILWAYS so now one can book his

railway tickets using ICICI Bank Internet Banking. IRCTC will deliver ticket to

delivery address mentioned by the person on whose name the tickets are booked.

ICICI Bank has teamed up with RELIANCE INFOCOMM and now one can pay

his/her Reliance Infocom bills through Internet Banking.

SBI BANK

It does not provide online shopping service.

HDFC BANK

HDFC Bank proudly presents the EasyShop Gold Debit Card. The EasyShop Gold Debit

Card is the first Gold Debit Card in India. Not only does it replaces the customers ATM

card, it also revolutionises the way the customers spend through a Debit Card.

Easyshop International Debit Card : This card can be used in India and abroad at

merchant locations such as shops and restaurants and to withdraw cash from a

widespread network of ATMs. The value of the payment made or cash withdrawn is

instantly debited from customers account. While all the purchases and cash withdrawals

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are in the currency of the country in which the customer is in, the customers account is

debited in Rupees!

NetSafe, is a unique online payment solution that offers the customers complete security

while shopping on the Internet. With NetSafe, the customers can now shop online

without revealing their HDFC Bank Credit Card number. They can now use their HDFC

Bank Debit Card also for online purchases.

Follow a simple 3-step process to register for NetSafe using either your HDFC Bank Visa

Credit or Debit Card. Once registered, the customers can choose the amount and account

they wish to debit and create as many NetSafe cards as they want. And after the

transaction or a max of 48 hours, the card will cease to exist. All this comes FREE withHDFC Bank Credit / Debit Card.

3. TICKET BOOKING

ICICI BANK

With ICICI Bank one need not visit Train/ Air ticket booking reservation centers any

more. One can now buy your tickets online and pay using ICICI Banks Internet Banking

Facility. ICICI Bank has tied up with IRCTC (for Railway Ticket Booking) and Air

Deccan (for Air Ticket booking).

SBI BANK

SBI bank also provides online railway booking and for this one has to log on to

www.irctc.co.in and register their on this site and further one has to follow the procedure

as given in SBIs site.

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HDFC BANK

It does not provide online booking of tickets.

4. INSURANCE SERVICE

ICICI BANK

It offers its customers the most comprehensive suite of General Insurance products

from ICICI Lombard, to cater to their insurance needs and that too online.

It offers the following products:

10K TAX SAVER HEALTH INSURANCE

FAMILY FLOATER HEALTH INSURANCE

OVERSEAS TRAVEL INSURANCE

STUDENT TRAVEL INSURANCE

4 WHEELER INSURANCE

2 WHEELER INSURANCE

HOME INSURANCE

SBI BANK

It does not provide online INSURANCE SERVICE to its customers.

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HDFC BANK

It does not provide online INSURANCE SERVICE to its customers.

5. ONLINE SHARE TRADING

ICICI BANK

It offers online share trading service to its customers through ICICI direct.com.

SBI BANK

It does not provide ONLINE SHARE TRADING services to its customers.

HDFC BANK

HDFC BANK does not provide ONLINE SHARE TRADING services to its customers

but it provides advice on direct equity through research reports based on fundamental

and technical parameters across individual stocks / model portfolio / customized client

portfolios.

Research recommendations are generated by banks Equity Research team and cover

different risk parameters and time horizons.

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6. SMS ALERTS

ICICI BANK

ICICI Bank offers Mobile Banking facility to all its Bank, Credit Card and Demat

customers. ICICI Bank Mobile Banking enables its customers to bank while being on the

move.

ICICI Bank Mobile Banking can be divided into two broad categories

Requests

Alerts

Mobile Banking Requests:

ICICI Bank Mobile requests provides its customers with the following requests:

a)Bank Requests

b) Credit Card Requests

c)Demat Requests

Mobile Banking Alerts:

ICICI Bank Mobile alerts provides its customers with the following alerts:

a)Bank Alerts

b) Credit Card Alerts

b) Demat Alerts

Charges:

All ICICI Bank Mobile Banking services are currently FREE. For charges on sending

SMS Requests to ICICI Bank, the customers will have to check with their mobile phone

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http://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#rhttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#BankRequestshttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#CreditCardhttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#demathttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#demathttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#BankAlertshttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#BankAlertshttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#CreditCardAlertshttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#rhttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#BankRequestshttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#CreditCardhttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#demathttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#BankAlertshttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm#CreditCardAlerts


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Service Provider. All updates of the fees would be put up on the banks site page for the

customers reference. ICICI Bank reserves the right to change the charges for this

facility.

SBI BANK

In a significant step towards enabling anytime-anywhere banking, OnlineSBI.com now

enables its customers to receive alerts on their mobile phone. The customers can ask to be

alerted when the balance on their account goes above or below a particular amount; or

when a transaction of greater than a specified amount hits their account; or when an

interest is applied on their account.

HDFC BANK

HDFC Bank presents Mobile Banking service. Now one can access his/her bank account

and conduct a host of banking transactions and inquiries through the banks Mobile

Banking service. One can check his/her balance, stop a cheque payment, or even pay

your utility bills. This banks Mobile Banking service gives account information and

real-time transaction capabilities from the mobile phones at a true "anywhere, anytime,

anyhow" convenience.

All this through SMS or WAP or R World ( for Reliance India Mobile customers). SMS

Banking brings the customers bank accounts to his/her fingertips. It works using Short

Messaging Service (SMS) technology. With SMS one can perform a wide range of

query-based transactions from his/her mobile phone, without even making a call.

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7. ATM SERVICE

ICICI BANK

ICICI Bank's 24 Hour ATM network is one of the largest and most widespread ATM

Network in India. ICICI Banks ATMs are located in commercial areas, residential

localities, major petrol pumps, airports, near railway stations and other places which are

conveniently accessible to the customers.

ICICI Bank ATMs features user-friendly graphic screens with easy to follow instructions.

The bank has introduced ATMs which interact with customers in their local language for

increased convenience.

SBI BANK

State Bank offers its customers the convenience of over 5067 ATMs in India. This means

that one can transact free of cost at the ATMs of State Bank Group (This includes the

ATMs of State Bank of India as well as the Associate Banks namely, State Bank of

Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore,

State Bank of Patiala, State Bank of Saurashtra, and State Bank of Travancore), using the

State Bank Cash Plus card.

State Bank Cash Plus Domestic Card: It offers its customers the latest in banning

convenience viz. State Bank Cash Plus card. With this card, there is no need to carry cash

in ones wallet and one need not fear overspending on his/her credit card. One can now

withdraw cash and make purchases anytime he/she wishes to. One can get a FREE ATM-

cum-Debit card with which one can transact for FREE at any of the 5067 ATMs of State

Bank Group within our country.

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HDFC BANK

HDFC bank provides ATM services 24 hours a day, 7 days a week, 365 days a year from

any of their over 1054 ATM across India.

8. ONEVIEW SERVICE

ICICI BANK

It does not provide oneview service to its customers.

SBI BANK

It does not provide oneview service to its customers.

HDFC BANK

For the first time in India, this convenient service brings together ones online bank

accounts (including those of family members), in one place, in total security. OneView

puts it all on one screen for the customer , so that tracking and managing His/her online

accounts becomes quicker and easier than ever before. It gives the customer a complete

picture of his/her finances across multiple accounts.

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9. PREPAID REFILL OF SIM CARD

ICICI BANK

It does not provide this service to its customers.

SBI BANK

It does not provide this service to its customers.

HDFC BANK

Pre-paid Refill through SMS :

A customer needs to be registered for this service. Now one will just have to walk across

to an HDFC Bank ATM and do the following.

1. Select 'Prepaid Refill/Bill Pay option

2. Select 'SMS refill registration'

3. Enter his/her 10 digit mobile number and confirm

Within seconds he/she will receive an SMS confirming his/her registration, giving his/her

a code number and also the syntax of the message that he/she needs to send for getting a

refill done. The number to which the message needs to be sent will also be a part of this

message that he/she receives. So now a refill is just an SMS away.

How much does it cost ?

This service is absolutely free from HDFC Bank! One will only have to pay the regular

SMS charge for his/her request. .

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10. MUTUAL FUND SERVICE

ICICI BANK

One can invest in mutual funds through ICICIdirect.com.

SBI BANK

It provides this service through SBI Mutual Fund (a partner for life).It offers both open-

ended as well as closed-ended schemes.

HDFC BANK

It does not provide investing in mutual funds through its website.

11. ONLINE DEMAT SERVICES

ICICI BANK

ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs

account holders. In their continuous endeavor to offer best of the class services

to their customers they offer the following features:

Online access to his/her demat account. The customers can check their holdings,

transactions, details of bills and status of requests and much more.

Digitally signed transaction statement by e-mail.

Corporate benefit tracking.

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e-Instruction facility - facility to transfer securities 24 hours a day, 7 days a week

through Internet & Interactive Voice Response (IVR) at a lower cost.

Dedicated specially trained customer care executives at the banks call centre, to

handle all queries of the customers

SBI BANK

It does not provide ONLINE DEMAT SERVICES to its customers.

HDFC BANK

HDFC Bank provides its customers with online access to his/her Demat Account, so

that they can check their holdings using theNetBankingfacility. Now the customer can

convert his/her securities to electronic format with the HDFC Bank Demat Account.

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CHAPTER-6

ANALYSIS OF THE DATA

COLLECTED

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ANALYSIS OF THE DATA COLLECTED THROUGH

THE QUESTIONNAIRE

I have analyzed the data collected through the questionnaire and have classified the data

into tables.

TABLE-I

NO. OF USERS WHO HAVE AVAILED THE ATM FACILITY OF

ANY BANK

AVAILED THE FACILITY NO. OF USERS

YES 90%

NO 10%

ATM Users

90%

10%

Yes

No

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TABLE-II

The users have used the ATM facility of the following banks:

ATMUsers

25

2510

15

15

10

HDFC Bank

SBOP

ICICI Bank

Bank of Punjab

SBI

Not used the facility

of ATM

NAME OF THE BANK

NO. OF USERS IN PERCENTAGE

HDFC BANK

25

STATE BANK OF PATIALA 25

ICICI BANK 10

BANK OF PUNJAB 15

STATE BANK OF INDIA 15

NOT USED THE FACILITY OF ATM

OF ANY BANK

10

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TABLE-III

THE SATISFACTION LEVEL EXPERIENCED BY THE ATM

USERS

LEVEL OF SATISFACTION

NO. OF USERS IN PERCENTAGE

HIGHLY SATISFIED 20

SATISFIED 70

INDIFFERENT 0

DISSATISFIED 0

HIGHLY DISSATISFIED 0

Satisfaction Level

20

70

0

0

0

10

Highly Satisfied

Satisfied

Indifferent

Dissatisfied

Highly Dissatisfied

Users not availing

the facility

TABLE-IV

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Following number of times in a week the users have used the ATM:

NUMBER OF TIMES NUMBER OF USERS IN

PERCENTAGE

1 60

2 20

3 5

5 5

USERS NOT AVAILING THE

FACILITY OF ATM

10

TABLE-V

Preference of the users of ATM card of the benefits of ATM:

ATM usage by user per week

6020

55 10

1

2

3

5

Users not availing

the facility

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TABLE-VI

WHETHER THE USERS OF ATM CARD HAVE FACED ANY

PROBLEM WHILE USING THE ATM CARD:

BENEFITS OF ATM NUMBER OF USERS IN

PERCENTAGE

It is time-saving 20

It is beneficial when cash is needed

Urgently

60

It is convenient 20

Benefits of ATM

20

60

20

It is time saving

Beneficial whencash needed

urgently

Convenient

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YES 40% (No. of users)

NO 60% (No. of users)

No. of users facing problem

40%

60%

YesNo

TABLE VI

PROBLEMS FACED BY THE USERS:

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NATURE OF PROBLEM NO. OF USERS IN PERCENTAGE

The card got withheld in the machine 25

ATM was not working 63

Instructions to use the ATM were not clear

and received no help from employees of

the bank

12

TABLE-VII

Other Internet Banking Services availed by the respondents:

NATURE OF SERVICE NO. OF USERS IN PERCENTAGE

Problem faced using ATM

25

63

12

Card got withheld in

machine

ATM was not

working

Received no help

from employees

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Credit card 15

Transferring ones money from one city to any

other branch in a city

5

Opening Fixed Deposit account via

The Internet

10

Inquire about the balance in ones saving,

Current and FD account

0

Tax deducted at source on ones FD account

for current financial year

0

Giving instructions over the internet for

stopping payments on cheques

0

Request for a cheque book via the internet 5

View all transactions on an account for a

specified period and get a copy via e-mail 0

None of the above 65

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Other Internet Banking Services used by users

155

100005065

Credit Card

Transferring ones money from one

city to any other branch in a city

Opening FD A/c via Internet

Inquire about balance in one's saving,

current & FD A/c

TDS on one's FD A/c for current

financial year

Givin instr. Over internet for stopping

cheque payments

Request for Cheque Book via Internet

View all transactions on an A/c f or aspecified period & get copy via e-mail

None of the above

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TABLE-VIII

Whether the respondents ever had any grievance against the bank providing

Internet Banking Services to it:

YES 5% (NO. OF USERS)

NO 95% (NO. OF USERS)

Grievance against the bank providing Internet

Banking Services

5%

95%

YesNo

TABLE-IX

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Level of satisfaction experienced by the respondents of the grievance handling procedure

of the bank:

LEVEL OF SATISFACTION NO. OF USERS IN PERCENTAGE

Highly Satisfied 0

Satisfied 100

Indifferent 0

Dissatisfied 0

Highly Dissatisfied 0

Satisfaction Level of Grievance Handling

Procedure

0

100

0

0

0

Highly Satisfied

Satisfied

Indifferent

Dissatisfied

Highly

Dissatisfied

TABLE-X

Respondents opinion of the weaknesses of Internet Banking Services:

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NATURE OF WEAKNESS NO. OF USERS IN PERCENTAGE

There is only one way communication 44

The security is not flawless 30

Lack of first hand experience gained by a

person by visiting a bank is not there 26

User's opinion of Weaknesses of

IBS

44

30

26

One way

communication

Security is not

flawless

Lack of first hand

experience gained

by a person by

visiting a bank

TABLE-XI

Respondents view of the security of the Internet Banking Services:

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It is secure 45% (No. of respondents)

It is not secure 55% (No. of respondents)

Use r's View of Se curity o

45%

55%

Secure

Not Secu

It is secure because

The security systems are reliable 89% ( No. OF RESPONDENTS)

There are firewalls which strengthens

the security system 11% ( No. OF RESPONDENTS)

Security Reasons in view of Users

89%

11% Security Systems

are reliable

Firewalls

strengthen the

security system

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It is not secure because there is always a risk from the hackers who may

hack the password of ones account and may manhandle ones account or transfer money

from ones account to their own account-------- THIS OPINION IS SUPPORTED BY

RESPONDENTS WHO ARE OF THE OPINION THAT THE INTERNET BANKING

IS NOT SECURE.

TABLE-XII

Opinion of the respondents on whether all public sector banks should start

providing Internet Banking Services to survive in the market:

ANSWER OF THE RESPONDENTS NO. OF USERS IN PERCENTAGE

YES 75

NO 25

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Respodent's View of whether PSB's should start

providing IBS

75

25

Yes

No

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TABLE XIII

RESPONDENTS REASON FOR SAYING YES IN THE ABOVE TABLE:

RESPONDENTS REASONS NO. OF USERS IN PERCENTAGE

Internet Banking is time-saving 20

To face the competition 50

Internet Banking is convenient and hassle-

free

20

Customer preference and increasing

number of people using the internet

10

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Respodent's reasons for saying yes in the above table

20

50

20

10

Internet Banking is

Time Saving

To face thecompetition

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CHAPTER-7

FINDINGS & CONCLUSION

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FINDINGS EXTRACTED OUT OF THE INFORMATION

COLLECTED THROUGH A QUESTIONNAIRE

1. Most of the respondents used ATM facility (90% of them availed this facility.)

2. Respondents were using the ATM facility of private banks more than the public

sector banks.

3. Most of the respondents were satisfied by the ATM facility being used by them.

4. Most of the respondents used ATM facility once in a week.

5. Most of the respondents feel that the benefit of the ATM card is that it comes handy

when cash is needed urgently.

7. 60% of the respondents faced using the ATM faced no problem in using the ATM

while 40% of the respondents faced a problem while using the ATM.

8. A major problem faced by the respondents while availing ATM card facility was that

the ATM was not working and the second common problem was that the card got

withheld in the machine.

9. Most of the respondents used very less Internet Banking facilities other than the ATM.

Out of the other facilities, credit card was the most commonly used service and the

second sevices used was opening a Fixed Deposit account via the internet.

10.95% of the respondents didnt have any grievance against the bank providing them the

internet services and the 5% respondents which had a grievance against bank providing

them the internet banking services were satisfied with the grievance handling procedure

of the bank.

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11. Most of the respondents felt that the weakness of internet banking is that it is a one

way communication and the second most commonly held weakness was that it is not

secure.

12. 55% of the respondents felt that Internet Banking is not secure and the reason behind

this is that hackers may hack the password of ones account and this may result in huge

losses to the user of Internet Banking.

13. Most of the respondents felt that the public sector banks should start providing the

Internet Banking services in order to face the competition from the private banks and also

because Internet Banking is time-saving and hassle-free.

SUMMARY AND CONCLUSION

E-commerce is rapidly expanding its wings across the globe and India is no exception to

this phenomenon. Now, several banks have put their electronic banking facilities on the

Internet and are providing many facilities like adopting ECS and EDI for knowing

account-status , funds transfer between accounts , Billing payments, Web-shopping,

Railway and air-ticket booking, etc to their customers at the click of a button. But since

Web is a public space open to all , THESE INTENET BASED SERVICES ALSO

RAISE NEW THREATS FOR THE BANKS. Financial institutions like banks and

merchant websites like Rediff , Amazon , payment sites like PayPal etc,. by virtue of the

value of information , their customers share with them are becoming the most lucrative

target for the attackers. Attackers are formulating newer strategies for attack and one such

attack is Phishing.

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STEPS TO BE TAKEN BY BANKS

EDUCATION AND AWARENESS

The banks need to generate awareness among its employees and customers about the

attack. Banks need to educate their customers as well as customer facing employees

about Phishing, types of attacks, countermeasures etc. Information can be given on the

website of the bank regarding handling e-mails that appear to come from legitimate

sources.

Further in order to give the customer a real idea of how the attack actually occur the bank

can give a demo on its site. The customer will click a given URL and he will go through

the steps similar to those in an actual attack. In this way by simulating the attack

customers can be better educated.

PROTECTING PRIVACY

The banks should ensure that customer contact information like e-mail addresses should

never fall in wrong hands since this betrays the customer trust and is against the basic

protocols of banking.

MONITORING

Banks can develop some intelligent fraud detection tools to trace fraudulent behaviors by

noticing the activities done by an attacker once he gets access to others personal

information. This can be integrated with the existing fraud detection and money

laundering systems.

LOGIN REPORTS

On logging in his account on the website the customer should be provided his last three

login times/dates including the exact duration. Also the bank may send monthly login

information to the customers.

OTHER APPROACHES

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Banks can become a member to organizations like APWG, in order to get latest updates

about the modus operandi of the attack and countermeasures. Also it can hire the services

of third party vendors, like a web server monitoring company. These companies examine

contents and looks of websites, which look similar to the organizations site. Another

approach can be, to have a PassMark security, which is a new initiative by a Silicon

Valley, based company. It works in reverse manner to passwords in the sense that instead

of user having confidential information in order to prove his identity, the institution

shares an image uniquely with each user. These personalized images can be embedded in

outgoing e-mails and on their website logon pages to provide a higher level of assurance

to the customer that the e-mail or website is authentic and not a rogue. Customers should

ensure the correct PassMark before entering their personal information on Web pages.

FRAUD RESPONSE

Banks should formulate strategies for responding to such frauds when they occur, so as to

minimize the losses. The customer should be educated to immediately inform the bank, in

such a case. The bank can then immediately freeze that account and try to catch the

fraudster. These response actions should be well understood and documented.

So, Internet Banking is the need of the hour and private banks are already

providing efficient Internet Banking Services to their customers. Although Public

sector banks are also providing Internet Banking Services but the number of their

branches facilitating such services are less as compared to private banks. So, the

Public sector banks should concentrate more on providing Internet Banking services.

By taking the above measures Internet Banking will become more secure and will help

the banks to become more competitive and profitable.

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SUGGESTIONS

1. Customers awareness must be their by organizing seminars and otherprogrammers.

2. More of ATM stations must be opened up.

3. Safety against frauds must be ensured by the system.

4. Brochure and forms must be available in all languages.

5. Banks must ensure that customer contact information like e-mail address should

never fall in wrong hands.

6. Banks can develop intelligent fraud detection tool to trace fraudulent behaviors.

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CHAPTER 8

BIBLIOGRAPHY

BIBLIOGRAPHY

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Library Sources

1. Internet Banking-The Second Wave: By Sanjeev Singhal,Tata Mcgraw Hill

Publication , 2003

2. Management Trends (A Journal of Department of Business Management)

Article- Internet Banking by Kavita Kshatriya Sep 2004

3. Indian Banking 2005 , The ICFAI University Press Publication

4. The Journal of Internet Banking and Commerce ( Published by Array Development of

Ottawa )

5. International Journal of Business Performance Management 2002 (Published by

InderScience publishers)

6. Internet Banking Shopping for the Older Generation by ---- Greg Chapman

7. Internet Banking :Strategies, Tools and Best Practices by Mona Brewer

(Published by Sheshunoff andCo.)

Internet Sources

www.sbi.com

www.hdfcbank.com

www.icicibank.com

www.firstib.com

www.nationalcity.com

www.netbanker.com

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http://www.sbi.com/http://www.hdfcbank.com/http://www.icicibank.com/http://www.firstib.com/http://www.nationalcity.com/http://www.sbi.com/http://www.hdfcbank.com/http://www.icicibank.com/http://www.firstib.com/http://www.nationalcity.com/


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