[Online Banking]

PROJECT REPORT(Submitted for the Degree of B.Com Honours in Finance under the

University of Calcutta)

ONLINE BANKING A CASE STUDY ON AXIS BANK

Submitted by

Name of the Candidate: NEHA SHAW

Registration No. : 017-1221-1201-13

Roll No. : 1017-51-0284

Name of the College: The Bhawanipur Education Society College

Supervised to

Name of the Supervisor: Prof. GARGI DAS

Name of the College: THE BHAWANIPUR EDUCATION SOCIETY

COLLEGE

Month & Year of Submission

January, 2016

ACKNOWLEDGEMENT

I express my thanks towards my professors and faculty members of The Bhawanipur Education Society College, Department of Commerce. A heartfelt gratitude towards my guide, Professor Gargi Das for patiently hearing me out and for giving valuable inputs on my research project.

I would like to make special thanks to my parents, without whose blessings, this project would not be possible.

Finally, I would like to thank my fellow college mates who have helped me through this period of project work.

Contents

CHAPTER 1-INTRODUCTION

1.1 BACKGROUND

1.2 REVIEW OF LITERATURE

1.3 OBJECTIVES OF STUDY

1.4 RESEARCH METHADOLOGY

1.5 LIMITATIONS OF STUDY

1.6 CHAPTER PLANNING

CHAPTER 2-CONCEPTUAL FRAMEWORK

CHAPTER 3-COMPANY PROFILE

3.1 COMPANY PROFILE ON AXIS BANK

3.2 DATA ANALYSIS.

3.3 FINDINGS

CHAPTER 4-CONCLUSION & RECOMENDATION

REFERANCES

QUESTIONAIRS

CHAPTER- 1

INTRODUCTION

Online Banking is the term used for new age banking system. Online Banking is also called as online banking and it is an outgrowth of PC banking. Online Banking uses the internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages and purchasing financial instruments and certificates of deposits. In the present scenario, most of the business organizations are using the internet for a variety of communication tasks, such as promotion of consumer awareness and interest, providing information and consultation, facilitating two-way communications with customers through e-mail, stimulating product trial and enabling customers to place orders. In order to avail the benefits that are accrued through using Internet, financial institutions like banks are transforming themselves and conducting their business electronically. This transformation from normal banking to electronic banking enabled customers to transact online, while saving on various factors.

To access a financial institution's online banking facility, a customer with internet access would need to register with the institution for the service, and set up a password and other credentials for customer verification. The credentials for online banking is normally not the same as for telephone or mobile banking. Financial institutions now routinely allocate

customers numbers, whether or not customers have indicated an intention to access their online banking facility. Customers' numbers are normally not the same as account numbers, because a number of customer accounts can be linked to the one customer number. The customer number can be linked to any account that the customer controls, such as cheque, savings, loan, credit card and other accounts.

1.1 BACKGROUND:-

The precursor for the modern home online banking services were the distance banking services over electronic media from the early 1980s. The term 'online' became popular in the late 1980s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. 'Home banking' can also refer to the use of a numeric keypad to send tones down a phone line with instructions to the bank. Online services started in New York in 1981 when four of the city's major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services using the videotext system. Because of the commercial failure of videotext these banking services never became popular except in France where the use of videotext (Minitel) was subsidised by the telecom provider and the UK, where the Prestel system was used. In the 1990s, banks realized that the rising popularity of the World Wide Web gave them an added opportunity to advertise their services. Initially, they used the Web as another brochure, without interaction with the customer. Early sites featured pictures of the bank's officers or buildings, and provided customers with maps of branches and ATM locations, phone numbers to call for further information and simple listings of products.

In 1995, Wells Fargo was the first U.S. bank to add account services to its website, with other banks quickly following suit. That same year, Presidential became the first U.S. bank to open bank accounts over the internet. According to research by Online Banking Report, at the end of 1999 less than 0.4% of households in the U.S. were using online banking. At the beginning of 2004, some 33 million U.S. households (31%) were using some form of online banking. Five years later, 47% of Americans used online banking, according to a survey by Gartner Group. Meanwhile, in the UK online banking grew from 63% to 70% of internet users between 2011 and 2012.

1.2 REVIEW OF LITERATURE:-

Malhotra, Pooja & Singh, B. (2010) this study is an attempt to present the present Status of online banking in India and the extent of online banking services offered by banks. In addition, it seeks to examine the factors affecting the extent of online banking services. The data for this study are based on a survey of bank websites explored during July 2008. The sample consists of 82 banks operating in India at 31 March 2007. Multiple regression technique is employed to explore the determinants of the extent of Online banking services. The results show that the private and foreign online banks have performed well in offering a wider range and more advanced services of online banking in comparison with public sector banks. Among the determinants affecting the extent of Online banking services, size of the bank, experience of the bank in offering Online banking, financing pattern and ownership of the bank are found to be significant. The primary limitation of the study is the scope and size of its sample as well as other variables (e.g. market, environmental, regulatory etc) which may have an effect on the decision of the banks to offer a wide range of Online banking services.

Polaris Software Lab (2010) In this study Polaris Software Lab Limited a leading Financial Technology Company, launched IntellectPRIVACY based on state-of-the-art technology and four patents filed by the Indian Institute of Technology Madras. IndusInd Bank has become the first bank in India to implement IntellectPRIVACY, an online and Online banking security card, for its Online banking customers. The technology will protect customers and banks from practically all kinds of phishing attacks, viz. deceptive e-mail, key/screen logger, brute force/dictionary attacks and Trojans, etc. Intellect PRIVACY uses multi factor, dynamic authentication technology providing for authorizing online banking transactions, in a completely secure platform. Commenting on the innovation, Professor L S Ganesh, Coordinator of the programmer, said, "At IIT Madras, the Department of Computer Science and Engineering and the Department of Management Studies got particularly interested in designing an online security technology that is cost efficient and easy to use in a rapidly growing e-commerce scenario, and transferring it commercially

Azouzi, D. (2009) this paper aims to check if the current and prompt technological revolution altering the whole world has crucial impacts on the Tunisian banking sector. Particularly, this study seeks some clues on which we can rely in order to understand the customers' behavior regarding the adoption of online banking. To achieve this purpose, an empirical research is carried out in Tunisia and it reveals that panoply of factors is affecting the customers-attitude toward online banking. For instance; age, gender and educational qualifications seem to be important and they split up the group into electronic banking adopters and traditional banking defenders and so, they have significant influence on the customers' adoption of online banking. Furthermore, this study shows that despite the presidential incentives and in spite of being fully aware of the online banking's benefits, numerous respondents are still using the conventional banking. It is worthy to mention that the fear of loss because of transactions errors or hackers plays a significant role in alienating Tunisian customers from online banking.

B. Dizon, J.A. (2009) In this study they have founded that while big banks still conduct the bulk of their business in brick and mortar bank branches, the finance sector has been increasingly investing on Online banking facilities to offer 24-hour, queue free services to their regular clients, whether through ATM machines, mobile phones. "Online Banking's

appeal is primarily its convenience. Clients nowadays want instant results; they don't want to wait anymore," said Francisco M. Caparros, Jr., senior vice-president of Asia United Bank and president of Banc Net. It's also turned out to be a more efficient way to process transactions, as online banking does away with most of the paperwork that clients have to accomplish. "A lot of people don't like filling forms," Mr. Caparros added. "Online banking, in particular, relies on user names and passwords which need to be protected," said Ferdinand G. La Chica, first vice-president and marketing group head for Sterling Bank of Asia. These anti- theft barriers are at times supplemented by transaction passwords and "tokens", often a keychain-like device that is issued to the client and generates random, one-time passwords to enable him to log into his account online.

Uppal, R.K. & Chawla, R. (2009) this study highlights customer perceptions regarding online banking services. A survey of 1,200 respondents was conducted in October 2008 in Ludhiana district, Punjab. The respondents were equally divided among three bank groups namely, public sector, private sector and foreign banks. The present study investigates the perceptions of the bank customers regarding necessity of Online banking services, quality of online banking services, bank frauds, future of online banking, preference of bank customers regarding banks, comparative study of banking services in various bank groups, preferences regarding use of online channels and problems faced by online bank customers. The major finding of this study is that customers of all bank groups are interested in online banking services, but at the same time are facing problems like, inadequate knowledge, poor network, lack of infrastructure, unsuitable location, misuse of ATM cards and difficulty to open an account. Keeping in mind these problems faced by bank customers, this paper frames some strategies like customer education, seminars/meetings, proper network and infrastructure facilities, online shopping facilities, proper working and installation of ATM machines, etc., to enhance Online banking services. Majority of professionals and business class customers as well as highly educated and less educated customers also feel that online banking has improved the quality of customer services in banks.

Reeti, Sanjay, and Malhotra, A. (2009) Stated about the Customer’s perspectives regarding online banking in an emerging economy. So that, the author determining various factors affecting customer perception and attitude towards and satisfaction with online banking is an essential part of a bank's strategy formulation process in an emerging economy like India. To gain this understanding in respect of Indian customers, the study was conducted on respondents taken from the northern part of India. The major findings depict that customers are influenced in their usage of online banking services by the kind of account they hold, their age and profession, attach highest degree of usefulness to balance enquiry service among Online banking services, consider security & trust most important in affecting their satisfaction level and find slow transaction speed the most frequently faced problem while using online banking.

Sarangapani and Mamtha (2008) studied the impact of Information Technology on banking sector and its security related aspects. Due to recent developments in banking industry and with introduction of Basel-I and II implementation; customers are more demanding now and it requires innovation in banking services. The researchers found that now the banking industry has been more customer-oriented with unlimited market place, extensive product breadth and e-enabled services provided to the customers. The IT initiatives in banking industry have resulted into reduction of time. Introduction of negotiated dealing system, screen based trading and RTGS for online settlement of inter-bank transfers

of fund had also resulted into safe, secure and quick movements of funds. The authors also studied e-security aspects of banking which pose damage and threat to the existing e-banking system. It includes unauthorized access to computer system or network, stealing information, e-mail bombing, data diddling, denial of service, viruses, etc. The authors concluded that existing legal framework was adequate to meet the challenges of e-banking; and it had become essential to create awareness of e-banking among customers, banks and society.

Raja (2008) evaluated the impact of e-payment system on the business opportunities. They identified that due to the growth of internet users, various electronic payment mechanisms had been developed to cater the diversity of applicants. The researchers classified the e-payments into three main groups, namely, cash like systems, check like systems, and hybrid systems which were further classified into credit cards, debit cards and electronic cheques. They identified three main issues related to e-payment that were security issues, low interest among businessmen, and heavy reliance on traditional payment methods. They also analyzed that there were technical and cultural problems which hinder the path of e-payments. However, to make e-payments more effective, security threats should be reduced; and people should be realized that traditional payment methods were more time consuming than electronic payment methods. They should also be realized that plastic card payments were more convenient, easier and more secure than cash or cheques.

Krishnamurthy (2006) highlighted the advantages, risks, innovations and convenience involved in e-banking. ATM, telephone, internet and cluster banking helped banks to deliver the products more effectively. The author, in his paper, also described operational efficiency of e-banking. It included basic e-banking, simple transactional and advanced transactional e-banking. Each site offered a differential kind of services to customers. The author also commented upon some risks such as loss of secrecy of the customers, financial stability, fraud prone possibilities, eruption of legal claims, etc. So, the author suggested that banks should adopt such a strategy in which risks and innovation in banking products move parallel and simultaneously.

Paul (2006) discussed the role of technology and scope of remote channels, their implication, strength, weakness, opportunity and threat in banking sector. The author evaluated that IT development affects banking in two ways. Firstly, it had contributed in reduction of costs associated with management of information by replacing paper based and labour intensive methods with automated processes. Secondly, it had modified the ways in which customers had access to banks’ services and products. The researcher found that the introduction of RTGS, NDS, and CFMS had increased the safety, security, efficiency and soundness in payment system. Lastly, the author revealed that technology had a great impact on the structure of banking sector in the form of bank branches, bank personnel and alliance.

Raghvan (2006) highlighted the transformation in the banking sector due to effect of information technology, tele-communication and electronic data processing. He also attempted to visualize the perception of banks in India in the year 2020 taking into account the impact of Online Banking, ATMs, EFT on the performance of banks and initiative taken in liberalization, privatization and globalization. He also evaluated the future of online and Online Banking. Due to tangible and proven benefits, automation of manual processes; online and Online Banking was slated to increase manifold. He also evaluated that currently an estimated 46 lakh net users were online and this was estimated to touch 160 lakh by March

2008. Furthermore, he analysed the projected indicators of banks in India in 2020 with special emphasis on Online Banking, online banking and electronic banking.

1.3 OBJECTIVES OF STUDY:-

The objectives of this project are as follows:

To a better understanding of the service quality dimensions that affect customer satisfaction in the e-banking sector from a consumer perspective. Perception of banks regarding the strategic and operational value of web-based banking, its benefits to customer and banks, and the key technology considerations.

To facilitate the organization in improving customer service. To help in creating awareness about the features of online banking with reference to

Punjab National Bank. To get a view of Punjab National bank’s online banking system.

To find out its online banking services available.

To find out its online banking system.

To know its mobile/sms banking services availability.

1.4 RESEARCH METHADOLOGY

DATA TYPES

Normally research methodology entails two kinds of data which are

1- Primary data- This type of data are collected through interviews questionnaire, survey etc.

2- Secondary data- This type of data are collected through internet, journal, articles publications research and other techniques. It will save time, money and efforts to collect the data.

DATA SOURCES- This project based on primary data and secondary data where information is gathered from internet, journals articles etc. the study was conducted in a major city of India Kolkata by selecting randomly 100 respondents.

STUDY PERIOD- Taking into account the availability if data, we have chosen the study a period spanning from November to February.

TOOLS AND TECHNIQUES OF DATA ANALYSIS- The data collected from internet and by the response of 100 respondent selected randomly, classified and tabulated as per the requirement of the study.

SAMPLE SIZE-100 respondent

RESEARCH AREA- Park Street

1.5 LIMITATIONS OF STUDY

When we developed this report, we faced these problems which disrupted the fulfilment of this report. There were several constrains while preparing this reports. Only four-five weeks were not sufficient to obtain complete information. While preparing the report, we faced a number of problems which may be termed as limitations. They are as follow:

Lack of enough time due to university time restriction.

Difficulties of getting information due to the employees work pressure.

Lack of proper information due to organizational secrecy policy.

Up to date information is not available in many situation.

Last but not the least, we didn’t get enough time to make this report more informative

and accurate.

1.6 CHAPTER PLANNING

The study of this project is divided into four chapter.

Chapter 1-This part of the chapter deals with the body of the project which includes the introduction, background of the study, need for the study, literature review methodology, limitation of the study and chapter planning.

Chapter 2-In this chapter, conceptual framework has been done.

Chapter 3-This chapter contain all the analysis and findings with the help of the survey done. All the data have been shown with the help of interpretation briefly.

Chapter 4-This is the last chapter deals with the conclusion and recommendation of the project.

CHAPTER - 2

CONCEPTUAL FRAMEWORK IN NATIONAL & INTERNATIONAL SCENARIO

Online banking refers to banking services where depositors can manage more aspects of their accounts over the Internet, rather than visiting a branch or using the telephone. Online banking typically is comprised of a secure connection to banking information through the depositor’s home computer or another device.

Online banking offers several main benefits to depositors. It provides a real-time view of finances and eliminates the need for numerous visits to a bank teller. It can also take the place of balancing a cheque book and other tedious tasks common to paper-based banking. Depositors can monitor each transaction in an accessible user interface to understand how credits, deposits, deductions and payments affect their account's balance.

Banks that offer online banking are sometimes called "brick-to-click." Many of these banks still provide branch services but support online options. This distinguishes them from brick-and-mortar banks, which offer no online services. Brick-and-mortar banks are becoming extremely rare in the age of digital transactions, and most banks have begun moving a number of customer interactions to the Web.

Easy Account CreationThere was a time when the only way to open a bank account was done manually through

person. Nowadays, it’s possible to complete the enrolment process from start to finish

without ever leaving your home.

Depending on the bank, the application forms can take less than 10 minutes to fill out. All

you have to do is input a few details and send out photocopies of whatever forms of

identification the bank requires. It’ll still take a few days or weeks before your account is

ready, but that’s to be expected regardless.

But the best part is that once you’ve made an account, additional accounts are even easier to

create since the bank already has the necessary information in its database. With multiple

accounts, moving money between them is often free and without delay.

Electronic StatementsTraditional bill statements are annoying on two fronts. First, they unnecessarily clog up your

physical mailbox. Second, they’re a tremendous waste of paper. Maybe you don’t care too

much about that second point, but for the most part paper bills have become a messy

inconvenience.

Of course switching to email statements can still result in digital clutter, but deleting an email

is far easier than shredding paper. Plus, with apps like Google Inbox, it’s nice to be able to

receive and read your bill reminders no matter where you go.

Worst case scenario: if you need a paper record for a particular bill, you can always print it

out. There aren’t any good reasons not to switch over to electronic statements ASAP. What

are you waiting for?

Automatic Bill PaymentsHow many bills do you pay every month? For most of us, the answer is “too many”. You’ve

got rent/mortgage, utilities, car loans, various types of insurance, student loans, and all of the

other subscriptions and enrolments in your life. That’s a lot of bills to juggle even if they

come once per month.

Most online banks allow you to link your bills directly to your account and have them paid on

time automatically. For every bill you set up, that’s one less thing you need to juggle every

month. That can add up to a lot of reduced stress.

Mobile Check DepositsMany banks offer a feature called Mobile Check Deposits, though the precise name might

differ from bank to bank. The concept is simple: instead of physically visiting your local bank

branch to deposit a check, you can do it from home by uploading a photo of the check (front

and back).

The only thing you need to do this is a mobile deposit app, which you should be able to find

on the App Store or the Play Store. Just be careful that you download a legitimate one! You

don’t want to be sending your check photos to a malicious third party. Again, make sure your

bank offers this feature before you try it.

Secure Message AlertsOne of the better reasons to use online banking is that you can receive notifications in close

to real-time. . These notifications can be trivial or annoying at times, but they can also save

your life. For example, you can be notified when:

Transactions are completed or denied,

A bill payment date is approaching,

Your bank balance is reaches a specified target amount,

Details of your account were changed,

There were failed attempts to log into your account.

If anything suspicious happens on your account, it’s incredibly helpful to have an immediate

alert since waiting too long can have disastrous consequences. That being said, even the

trivial alerts can be useful in the right situations.

Report & Management ToolsPrior to online banking, it wasn’t exactly easy to get on-demand reports and summaries for

your account activity. Depending on the bank, there might even have been a fee associated

with retrieving that info. Yet, with online banking, it’s always one click away.

Some banks are better than others in this regard. Most of them will provide you with a

transaction history at the very least, but the best ones have advanced features like creating

categories and viewing how much you’ve spent in each category (e.g. bills, entertainment,

emergency, etc.).

Desktop Software IntegrationIf you use Quicken (or one of several Quicken alternatives) to help manage your money, then

online banking might make that area of your life even easier. As long as your bank supports

your tool, you should be able to integrate your bank account seamlessly with whatever

desktop software you use.

Integration can involve a direct connection between your bank account and your software, but

if not, the other possibility is exporting your transaction history as a file download (typically

in .CSV format) and importing it into the software like that.

Final ThoughtsOn top of everything we’ve said here, there are a few more reasons to start using online

banking. There’s a measurable increase in convenience, so much so that it’ll grant you some

space to step back and take a deep breath with regard to your money.

A brief note: there’s a little bit of extra risk with online banking since you’re banking (no pun

intended) all of your security on passwords, but as long as you practicegood security

habits and utilize two-factor authentication, you shouldn’t run into any issues there. And if

you can’t log into your bank account, here are a few tips to help you out.

Advantages

It's generally secure. But make sure that the website you're using has a valid security certificate. This lets you know that the site is protected from cyber-thieves looking to steal your personal and financial information.

You have twenty-four-hour access. When your neighbourhood bank closes, you can still access your account and make transactions online. It's a very convenient alternative for those that can't get to the bank during normal hours because of their work schedule, health or any other reason.

You can access your account from virtually anywhere. If you're on a business trip or vacationing away from home, you can still keep a watchful on your money and financial transactions - regardless of your location.

Conducting business online is generally faster than going to the bank. Long teller lines can be time-consuming, especially on a Pay Day. But online, there are no lines to contend with. You can access your account instantly and at your leisure.

Many features and services are typically available online. For example, with just a few clicks you can apply for loans, check the progress of your investments, review interest rates and gather other important information that may be spread out over several different brochures in the local bank.

Disadvantages

Yes, online banking is generally secure, but it certainly isn't always secure. Identity theft is running rampant, and banks are by no means immune. And once your information is compromised, it can take months or even years to correct the damage, not to mention possibly costing you thousands of dollars, as well.

Some online banks are more stable than others. Not all online setups are an extension of a brick-and-mortar bank. Some operate completely in cyberspace, without the benefit of a branch that you can actually visit if need be. With no way to physically check out the operation, you must be sure to thoroughly do your homework about the bank's background before giving them any of your money.

Before using a banking site that you aren't familiar with, check to make sure that their deposits are FDIC-insured. If not, you could possibly lose all of your deposits if the bank goes under, or its major shareholders decide to take an extended vacation in Switzerland.

Customer service can be below the quality that you're used to. Some people simply take comfort in being able to talk to another human being face-to-face if they experience a problem. Although most major banks employ a dedicated customer service department specifically for online users, going through the dreaded telephone menu can still be quite irritating to many. Again, some are considerably better (or worse) than others.

Not all online transactions are immediate. Online banking is subject to the same business-day parameters as traditional banking. Therefore, printing out and keeping receipts is still very important, even when banking online.

Online banking does have pros and cons. However, it's not only the wave of the future, it's the wave right now, and the clock isn't likely to go backward. If you take reasonable care to safeguard your personal and financial information, you'll likely find that online banking is a convenient tool that you can easily live with. Eventually, you'll probably even wonder how you ever lived without it.

NATIONAL SCEVARIO:-

THE ENTRY OF INDIAN BANKS INTO ONLINE BANKING

Online Banking, both as a medium of delivery of banking services and as a strategic tool for business development, has gained wide acceptance internationally and is fast catching up in India with more and more banks entering the fray. India can be said to be on the threshold of a major banking revolution with online banking having already been unveiled. A recent questionnaire, to which 46 banks responded, has revealed that at present, 11 banks in India are providing Online Banking services at different levels, 22 banks propose to offer Online Banking in near future while the remaining 13 banks have no immediate plans to offer such facility.

Products and services offered

Banks in India are at different stages of the web-enabled banking cycle. Initially, a bank, which is not having a web site, allows its customer to communicate with it through an e-mail address; communication is limited to a small number of branches and offices which have access to this e-mail account. As yet, many scheduled commercial banks in India are still in the first stage of Online Banking operations.

Some of the banks permit customers to interact with them and transact electronically with them. Such services include request for opening of accounts, requisition for cheque books, stop payment of cheques, viewing and printing statements of accounts, movement of funds between accounts within the same bank, querying on status of requests, instructions for opening of Letters of Credit and Bank Guarantees etc. These services are being initiated by banks like ICICI Bank Ltd., HDFC Bank Ltd. Citibank, Global Trust Bank Ltd., UTI Bank Ltd., Bank of Madura Ltd., Federal Bank Ltd. etc.

Some of the more aggressive players in this area such as ICICI Bank Ltd., HDFC Bank Ltd., UTI Bank Ltd., Citibank, Global Trust Bank Ltd. and Bank of Punjab Ltd. offer the facility of receipt, review and payment of bills on-line. These banks have tied up with a number of utility companies.

Banks like ICICI Bank Ltd., HDFC Bank Ltd. etc. are thus looking to position themselves as one stop financial shops. These banks have tied up with computer training companies,computer manufacturers, Internet Services Providers and portals for expanding their online banking services, and widening their customer base. ICICI Bank Ltd. has set up a web based joint venture for on-line distribution of its retail banking products and services on the Internet, in collaboration with Satyam Info way, a private ISP through a portal named as icicisify.com. The customer base of www.satyamonline.com portal is also available to the bank. The race for market supremacy is compelling banks in India to adopt the latest technology on the Internet in a bid to capture new markets and customers. HDFC Bank Ltd. with its 'Freedom- the e-Age Saving Account' Service, Citibank with 'Suvidha' and ICICI Bank Ltd. with its 'Mobile Commerce' service have tied up with cell phone operators to offer Mobile Banking to their customers.

INTERNATIONAL SCENARIO:-

Since its inception, Online Banking has experienced strong and sustained growth. World Bank report on leapfrogging in e-finance pointed out that the three countries with impressive progress in information technology in this sense are Estonia, Republic of Korea and Brazil. Creation of the world's leading electronic banking systems has been done at a remarkably low cost compared to other world-class internet banks.

In the European Union, 60 million people, representing 18 percent of the adult population, use online banking. In France, the number of online banking accounts is recording an annual growth rate of 80 percent. However, Estonia is a country that has become a leader in Online Banking (which now reaches 18 percent of the population), not only among Eastern European countries but in world rankings, through a combination of easy to- use software, free-of-charge transactions and behaviour changes resulting from the influence of the Nordic countries' IT culture on Estonia.

A sector in which Latin America is seems to be performing better than in other industries is online retail banking. Growth in this area has been driven by traditional banks, which have used the online channel to generate customer loyalty and improve their operating margins. Two Brazilian banks, Bradesco and Banco do Brasil; havethus achieved more than 4 million online customers each. Mexico is another leader of Online Banking in Latin America. It adopted legislation providing for thedevelopment of both E-Commerce and e-finance. In Mexico, the number of onlinebank users more than tripled from 700,000 in 2000 to 2.4 million in 2001, and it reached 4.5 million in 2005. One reason for the success ofLatinAmerican banks' online ventures seems to be the attention they have paid toproviding retail customers with multiple ways to access their accounts (Internet, telephone, wireless).

However, given that the share of the total population thatactually has a bank account is relatively small, the expansion of Latin Americanonline banking may be facing a bottleneck.Compared with overall Internet usage estimated at 4.4 million in Australia, the majorbanks together have attracted only 1.2 million to online banking. The Internet is aglobalphenomenon and so is e-finance. Its deployment is not limited to developedcountries, and indeed some developing countries - such as India and the Republic of Korea - are experiencing particularly strong growth in E-Banking.

In Asia one of themost impressive records has been achieved by the Republic of Korea. The Republic of Korea is leading in online brokerage and in mobile banking. In South-East AsiaInter online banking is also developing rapidly in Thailand, Malaysia, and Singapore and to a lesser extent in Philippines. In Bangladesh there is a large gap between the computerization of foreign banks and that of local commercial banks and as regards the state of their intra- and inter-branch online networks.

However, 75 per cent of local banks are planning to introduce E-Banking, which implies very dynamic improvements. Apart from North and South Africa the Sub Saharan Africa is the region that is seriously lagging behind in Online Banking, although it is giving to the rest of the world the good example of microfinance developments.

CHAPTER - 3

COMPANY PROFILE

3.1 COMPANY PROFILE ON AXIS BANK:-

Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.

The Bank has a large footprint of 2589 domestic branches (including extension counters) and 12,355 ATMs spread across the country as on 31st March 2015. The overseas operations of the Bank are spread over nine international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai; representative offices at Dhaka, Dubai, Abu Dhabi and an overseas subsidiary at London, UK. The international offices focus on corporate lending, trade finance, syndication, and investment banking and liability businesses.

Axis Bank is one of the first new generation private sector banks to have begun operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The shareholding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.

With a balance sheet size of Rs. 461,932 crores as on 31st March 2015, Axis Bank has achieved consistent growth and stable asset quality with a 5 year CAGR (2010-11 to 2014-15) of 21% in Total Assets, 18% in Total Deposits, 22% in Total Advances and 24% in Net Profit.

Operations

Indian Business:As on 07-Mar-2016, the Bank had a network of 2500 branches and extension counters and 12922 ATMs. Axis Bank has the largest ATM network among private banks in Indiaand it operates an ATM at one of the world’s highest sites at Thegu, Sikkim at a height of 4,023 meters (13,200 ft) above sea level.

International Business: The Bank has eight international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai, Colombo and representative offices at Dubai and Abu Dhabi, which focus on corporate lending, trade finance, syndication, investment banking and liability businesses. In addition to the above, the Bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited. The total assets of the overseas branches were US$7.86bn

Services

Axis Bank operates in four segments: Treasury operations, Retail banking, Corporate/Wholesale banking and other banking business.

Treasury operations: The Bank’s treasury operation services include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding.

Retail banking: In the retail banking category, the bank offers services such as lending to individuals/small businesses subject to the orientation, product and granularity criterion, along with liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and Non-resident Indian (NRI) services. Axis bank is a participant in RBI's NEFT enabled participating banks list.

Corporate/wholesale banking: The Bank offers to corporate and other organisations services including corporate relationship not included under retail banking, corporate advisory services, placements and syndication, management of public issues, project appraisals, capital market related services and cash management services.

NRI services: Products and services for NRIs that facilitate investments in India.

Business banking: The Bank accepts income and other direct taxes through its 214 authorised branches at 137 locations and central excise and service taxes (including e-Payments) through 56 authorised branches at 14 locations.

Investment banking: Bank’s Investment Banking business comprises activities related to Equity Capital Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBI-registered Category I Merchant Banker and has been active in advising Indian companies in raising equity through IPOs, QIPs, and Rights issues etc. During the financial year ended 31 March 2012, Axis Bank undertook 9 transactions including 5 IPOs and 2 Open Offers.

Lending to small and medium enterprises: Axis Bank SME business is segmented in three groups: Small Enterprises, Medium Enterprises and Supply Chain Finance. Under the Small Business Group a subgroup for financing micro enterprises is also set up. Axis bank is the first Indian Bank having TCDC cards in 11 currencies.[citation needed]

Agriculture banking: 759 branches of the Bank provide banking services, including agricultural loans, to farmers. As on 31 March 2013, the Bank’s outstanding loans in the agricultural sector was INR 148 billion, constituting 7.5% of its total advances.

Advisory Services have been developed to advise public and private sector clients on capital structuring and funding options with a view to help the clients to help them reduce the cost of funds. The Group has also been active in advising the central and various state governments or their agencies in privatisation and bid process management. The Group has successfully

worked on some of the benchmark transactions in infrastructure development & manufacturing sector covering an entire range of projects across roads, railways, airports, urban infrastructure maritime, power, oil and gas, petrochemicals, cement, sugar, textiles, steel & allied sectors, auto ancillaries, paper, Information Technology (IT), etc.

Ping Pay was unveiled between 21-25 May 2015, which is a multi-social payment solution that let customers to transfer funds using their smart phones to both Axis Bank accounts and other banks' account holders.

History

UTI Bank opened its registered office in Ahmedabad and corporate office in Mumbai in December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad by Dr. Manmohan Singh, then Finance Minister of India. UTI Bank began its operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted in 1993 jointly by the Administrator of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation, National Insurance Company, The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company.

In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but the Reserve Bank of India (RBI) withheld approval and nothing came of this. In 2004 the RBI put Global Trust into moratorium and supervised its merger into Oriental Bank of Commerce.

UTI Bank opened its first overseas branch in 2006 Singapore. That same year it opened a representative office in Shanghai, China.

UTI Bank opened a branch in the Dubai International Financial Centre in 2007. That same year it began branch operations in Hong Kong. The next year it opened a representative office in Dubai.

Axis Bank opened a branch in Colombo in October 2011, as a Licensed Commercial Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis Bank opened a representative offices in Abu Dhabi.

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis Bank UK has a branch in London.

In 2014, Axis Bank upgraded its representative office in Shanghai to a branch.

3.2 DATA AYNALYSIS

1. Gender?(a) MALE 70%(b) FEMALE 30%

70%

30%

Gender

Male Female

Interpretation of the above diagram

From the above data we can observed that the number of online banking users are more males70% than females30%

2. Age Group?(a) 16-24(b) 25-34(c) 35-44(d) 45-54(e) 55-64(f) 65+

11%

24%

25%

18%

13%

9%

Age Group

16-24 25-34 35-44 45-54 55-64 65+

Interpretation of the above diagram

The working group that is from the age of 25-34 & 35-44 uses more online banking as compare to other age group. It acquire almost half of the online banking system users.

3. Are you aware of online banking services offered by the banks?

(a) YES

(b) NO

Awareness of Online Banking services

Interpretation of the above diagram

It is good for the banks as most of the respondents were aware of the Online Banking and all the services provided under Online Banking

90%

10%

Awareness of interonline banking services

yes No

4. In which company bank do you have your account?

(a) Axis bank

(b) Standard Chartered Bank

(c) HSBC Bank

(d) HDFC Bank

(e) State Bank of India

Interpretation of the above diagram

It was witnessed that today public sector bank State bank of India has the largest customer base but the private banks are also catching up and after State bank of India HDFC has the highest customer base .Multi-national banks are also making their presence noticeable in the Indian scenario

10%

20%

5%

30%

35%

Account in the respectice bank

Axis SCB HSBC HDFC SBI

5. Are you satisfy with your bank services?

(a) YES

(b) NO

Satisfaction with banking services

Interpretation of the above diagram

It is very interesting to see that most of the respondents are happy from the services their respective bank is providing ,the rest of the respondents felt there is a scope of improvement still they were also happy

80%

20%

Satisfaction with banking services

Yes No

6. What are your main transactions you would prefer to do by net?

(a) Money transfers

(b) Checking of your current balance

(c) Create Fixed Deposits Online

(d) Request a Demand Draft

(e) Pay Bills

(f) Order a Cheque Book

(g) Request Stop Payment on a Cheque

Interpretation of the above diagram

It is interesting to see that a respondent would like to do all the transactions which one does personally on a visit to the bank. Thus, Online Banking has a promising future ahead

16%

13%

13%

14%

16%

14%

14%

Main Transactions

Money transfers Checking of your current balabce Create Fixed Deposits Online Request a Demand DraftPay Bills Order a Cheque BookRequest to Stop Payment on a Cheque

7. Are you aware of the benefits of online banking which are available?

(a) Yes

(b) No

Interpretation of the above diagram

It is pretty amazing to see that most of the respondents are aware of the benefits of Online Banking

90%

10%

Benefits of Online Banking

Yes No

8. Does your bank educate you about the Online Banking services being offered?

(a) Yes

(b) No

Interpretation of the above diagram

Most of the respondents felt that they are not properly educated of Online Banking and its benefits to them.

60%

40%

Education about online banking

Yes No

9. Would you prefer using online banking instead of visiting your

Bank every now and then?

(a) YES

(b) NO

Interpretation of the above diagram

It was witnessed that most of the respondents preferred using Online Banking over there conventional banking system. Thus,Online Banking has a bright future ahead

90%

10%

Prefer using online banking

Yes No

10. What benefits do you see in Online Banking?

(a) Convenience

(b) Speed

(c) Transparency

(d) Time

Interpretation of the above diagram

Most of the respondents felt that the transparency provided by Online Banking is the highest motivating factor for an individual to use Online Banking; rest speed convenience and time are also the other motivating factors.

16%

21%

53%

10%

Benefits Seen by Customers

Convenience Speed Transparency Time

3.3 FINDINGS

1. From the above data we can observed that the number of online banking users are more males70% than females30%

2. The working group that is from the age of 25-34 & 35-44 uses more online banking as compare to other age group. It acquire almost half of the online banking system users.

3. It is good for the banks as most of the respondents were aware of the Online Banking and all the services provided under Online Banking

4. It was witnessed that today public sector bank State bank of India has the largest customer base but the private banks are also catching up and after State bank of India HDFC has the highest customer base .Multi-national banks are also making their presence noticeable in the Indian scenario

5. It is very interesting to see that most of the respondents are happy from the services their respective bank is providing ,the rest of the respondents felt there is a scope of improvement still they were also happy

6.It is interesting to see that a respondent would like to do all the transactions which one does personally on a visit to the bank. Thus, Online Banking has a promising future ahead

7. It is pretty amazing to see that most of the respondents are aware of the benefits of Online Banking

8. Most of the respondents felt that they are not properly educated of Online Banking and its benefits to them.

9. It was witnessed that most of the respondents preferred using Online Banking over there conventional banking system. Thus, Online Banking has a bright future ahead

10. Most of the respondents felt that the transparency provided by Online Banking is the highest motivating factor for an individual to use Online Banking; rest speed convenience and time are also the other motivating factors.

CHAPTER - 4

CONCLUSION & RECOMMENDATION In conclusion, as has been rightly noted by the Working Group that "the applicability of various existing laws and banking practices to e-banking is not tested and is still evolving, both in India and abroad. With rapid changes in technology and innovation in the field of e-banking, there is a need for constant review of different laws relating to banking and commerce."

The establishment of the multidisciplinary high level standing committee to review the legal and technological requirements of e-banking on a continual basis and recommendations of appropriate measures as and when necessary would really be a panacea for legal clarifications as and when they arise.

The key in such future and further deliberations would be to encourage banks towards innovation and where necessary or required evolve new practices and customs to complement the banking laws in force from time to time. Keeping in view the terms of reference, the Group has made a number of recommendations in preceding chapters. A summary of these recommendations is given below.

TECHNOLOGY AND SECURITY STANDARDS

The role of the network and database administrator is pivotal in securing the information system of any organization. Organizations should make explicit security plan and document it.

The banks providing Online Banking service, at present are only accepting the request for opening of accounts. The accounts are opened only after proper physical introduction and verification. Under the present regime there is an obligation on banks to maintain secrecy and confidentiality of customer's account.

REGULATORY AND SUPERVISORY ISSUE

All banks, which propose to offer transactional services on the Internet, should obtain approval from RBI prior to commencing these services. Bank's application for such permission should indicate its business plan, analysis of cost and benefit, operational arrangements like technology adopted, business partners and systems and control procedures the bank proposes to adopt for managing risks, etc.

REFERENCEINTERNET

httpWwww.onlinebanking.net/online-banking-services/ http;//www.productivity501.comjchoosin,g-online-bank/244/ http://www.banknetindia.com/banking/ibkg.htm

BOOKS

QUESTIONNAIRES

Dear Respondent,

I am student ofBHAWANIPUR COLLEGE. I am doing this research to

Compare different services provided by bank to its clients.

1.Gender?

(c) MALE 70%(d) FEMALE 30%

2.Age Group?

(g) 16-24(h) 25-34(i) 35-44(j) 45-54(k) 55-64(l) 65+

3. Are you aware of online banking services offered by the banks?

(a) Yes- 90%

(b) No- 10%

4. In which company bank do you have your account?

(a) Axis bank- 10%

(b) Standard Chartered Bank- 20%

(c) HSBC Bank- 5%

(d) HDFC BANK- 30%

(e) STATE BANK OF INDIA- 35%

5. Are you satisfy with your bank services?

(a) Yes- 80%

(b) No- 20%

6. What are your main transactions you would prefer to do by online banking?

(a) Money transfers- 16%

(b) Checking of your current balance- 13%

(c) Create Fixed Deposits Online- 13%

(d) Request a Demand Draft- 14% (e) Pay Bills- 16% (f) Order a Cheque Book- 14%

(g) Request Stop Payment on a Cheque- 14%

7. Are you aware of the benefits of online banking which are available?

(a) Yes- 90%

(b) No- 10%

8. Does your bank educate you about the online banking services being offered?

(a) Yes- 60%

(b) No- 40%

9. Would you prefer using online banking instead of visiting your bank every now and then?

(a) Yes- 90%

(b) No- 10%

10. What benefits do you see in Online Banking?

(a) Convenience- 16%

(b) Speed- 21%

(c) Transparency- 53%

(d) Time- 10%

PERSONAL INFORMATION

Name: NEHA SHAW

Age: 21

Sex:FEMALE

Occupation: B.COM (HONOURS)

Phone No:8100078951

Annexture-1

Supervisor’s Certificate

This is to certify that Miss NEHA SHAW, a student of B.Com. Honours in Accounting & Finance of The Bhawanipur Education Society College under the University of Calcutta has worked under my supervision and guidance for her project work and prepared a Project Report with the title Online Banking A Case Study on Axis Bank.

The project report, which she is submitting, is her genuine and original work to the best of my knowledge.

Signature:

Place: Name:

Date:Designation:

Name of the college: The Bhawanipur Education Society College

Registration No. : 017-1221-1201-13Roll No. : 1017-51-0284

Annexure- II

Student’s Declaration

I hereby declare that the project work with the title ONLINE BANKING A CASE STUDY ON AXIS BANKsubmitted by me for the partial fulfilment of the degree of B.Com Honours in Accounting & Finance / Marketing / Taxation / Computer Applications in Business under the University of Calcutta is my original work and has not been submitted earlier to any other University/ Institution for the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report from any earlier work done by others or by me. However, extracts of any literature which has been used for this report has been duly acknowledged providing details of such literature in the references.

Signature:

Place: Name:

Date:

Registration No. : 017-1221-1201-13Roll No. : 1017-51-0284