synopsis Internet banking

1.1.Background of the Study

The Internet is an international computer network connecting people and organizations around the world. This technology has profoundly impacted society, culture, employment, communication and even the global economy. The Internet, together with e-commerce, is reshaping how businesses deliver value to customers. Online financial activity has increased steadily as more Internet-capable households use Internet banking. Internet banking can be defined as accessing and manipulating financial information via the Internet using personal computers and Web browsers.
The adoption and usage of information technology is becoming an essential feature in today’s development, especially in the banking sector. The use of Internet banking allows customers to access their accounts, make necessary enquiries
and undertake banking transactions. Due to the increased use of personal computers to access the Internet and World Wide Web, the Internet has provided an easy channel for accepting orders and become a handy medium for delivering products and services to the entire customers. This innovation has been increasing radically in recent times. This kind of banking is commonly known as Internet Banking (RBI, 2001).

1.2 Definition of Internet Banking

For electronic banking and Internet banking, products and services can be defined as the bank distribution channel. The definition of Internet Banking varies according to the given subject and researchers (Daniel 1999). Mobarek (2007) states that electronic and interactive communication channels, both new and traditional, transfer banking products and services directly to customers through an automatic distribution and “is defined as electronic banking, a new distribution channel for banking services by electronic banking (Mols 1998). Electronic banking definitions vary amongst researchers partially because electronic banking refers to several types of services through which bank customers can request information and carry out most retail banking services through computer connected network, television or mobile phone” (Mols 1998). In line with this, Kolodinsky et al (2004) mention that electronic banking could also be defined in several different platforms as follows:

  Internet banking or online banking

  PC banking or offline banking

  Telephone banking

  Mobile phone banking

  App–based banking

Internet banking via the mobile phone is considered fast and reliable. Studies states that Internet banking or online banking transactions is achieved with the Internet connected to a network and is said to be a safe and useful way to conduct banking. Electronic banking services can be done at home without the stress of going to the bank to perform the same operations, such as office

account balances or funds transfers, bill payments, money transfers and online shopping transactions. Online banking services and products include account access, account statements, fixed deposit inquiries, money transfers, credit card payments, invoices, payments and checkbook requests. As more people embrace the Internet, online banking is expected to grow. This expected growth will also affect people’s income and education levels. Research has been done on the adoption of Internet banking and the banks’ performances. Research for internet banking is less than the effect of scientific investigations (Daniel and Storey 1997). Banks began offering Internet services in 1995 (Sullivan 2000). Although the speed of Internet banking system expansion has slowed, most users are still determined to see further development. More users are starting to become familiar with the use of personal computers, and mobile phones and the Internet use, so there is a rising hope that modern technology (Internet) in the banking sector will adopt the use of serious tests. Existing customers these days only want to do online transactions, in every case, they use the desired text and e-mail messages, while all kinds of activities and financial accounts need to be used to get financial updates.

In the increasingly competitive banking environment, Internet banking is seen as a useful tool to help reduce paper usage. It is now very difficult to maintain and keep paper records, which are being destroyed. Virtually all financial institutions with millions of customers have replaced paper records with online computer networks. Some customers still ask for receipts and paper records even though such records can be kept in their own mobile phones and personal computers, which are connected to their bank (Sullivan 2000)


One has to approach the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In true Internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Providing Internet banking is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus, now is more of a norm rather than an exception in many developed countries due to the fact that it is the cheapest way of providing banking services after demonetization.


The study intends to realize the following specific objectives.

·         To understand the role of internet banking services overcoming the banknotes demonetization
·         To examine the effectiveness of the internet banking services provided by HDFC Bank to the customers during the currency surgical strikes.
·         To examine the preferences of the customers towards E-banking


The study is made taking consideration of all banks in Hyderabad after surgical strikes on currency before demonetization and after demonetization. With reference to experience about internet banking.

1.6.Research methodology

Methods of data collection
    Primary data.
1.     Secondary data

      Primary data:
The primary data are those, which are collected fresh and for the first time and thus happen to be original in character. Primary data are collected through “Mail survey and direct interviews”.
Mail survey:
    The questionnaire is send to the employee through the mail and the required data are collected for the research work.
Direct interviews:
      Some of users  have not responded to the questionnaire, so for those users , direct interviews have been conducted to get the information required
Secondary data: 
      Secondary data are those, which have already been collected by some one and which have already been passed through statistical process. The secondary data have been collected from following ways.
      The information, which are required for the review of literature and research methodology and sampling technique.

          Journals are used for finding out new ideas and information required for the research work.
         Internet has been used to get more information for the research from various web sites, to explore new ideas to be implemented in the statistical tools and review of literature.
     Magazines have been used to get new method for evaluating the training needs.
The tools used in the study to perform the analysis of the samples are:
1)      Chi-Square test
2)      Percentage analysis

The sample of the study consist the bank account holders in Hyderabad region (nearly 25 branches are covered from AXIS,SBI, HDFC, ICICI and IDBI) who are operating their accounts from last 3 years are considered as valid response.100  respondents

  1. The study is restricted to leading banks only.
  2. The study for security reason banks is not allowed to do a survey.
  3. Detailed study of the topic was not possible due to the limited size of the project.
  4. The study is limited to Hyderabad  region only
  5. There was a constraint with regard to time allocation for the research study.
i.e. for a period of 45 days.

1.8.Future scope of study:-
The study of this topic will help to get improve the process of internet banking and usefulness to banking industry after demonetization . As the study contains the 360 degree information regarding Indian banks and its internet banking after and before demonetization , Hence the study will lead to new ways to tackle the problems with respect of internet banking to fight demonetization.


1.Name: ……………………………………………….(Optional)
2. Age group (Years):1) <25     2) 25-35        3)  35-45     4)  45-55               5)  55&above
3. Gender:                   1) Male   2) Female
4. Qualification:          1) Degree         2) Post Graduate  3) Professional4) Others__________.
5. Occupation:                        1) Student        2) Business          3) Employee            4)Self-employed
                                    5) Retired         6) Home maker            7) Others____________________.
6. Monthly income (In Rs.):1) < 25000               2)25001-40000     3)40001-50000     
                                    4)55001-70000            5) > 70000
7.  Name the Bank in which you have your internet banking facility
1) SBI Group   2) ICICI          3) HDFC          4) AXIS       5) Others______________.
8.  Which of the following banking services you mostly use to eliminate problem on demonetization?
            1)PAYTM                                2) Telephone banking  3) SMS banking
            4) Online banking        5) Mobile banking6)Others_____________(Specify).
9.How often do you use Internet Banking services per week?
1) <15 times                   2)1 5-15 times                       3)15-25 times                          4)>30 times

10. Factors that influencing the adopting of Internet Banking.
      Please Rank (1-5) in the order of your preferences
Factors that influencing the adoption of Internet Banking
Problem of Surgical strikes on Currency (500/- and 1000/-)

IB is easy to use

IB saves time

IB is available at any time (24x7)

IB is accessible from anywhere

IB is less expensive

IB has Flexibility

IB has Speedy Transaction

IB is Secured

IB is reliable

IB eliminates the risk of carrying cash

IB Display Updated Information

11. Do you think is it safe to disclose account details while transactions are done through internet banking effect of demonetization?
1) Strongly agree          2) agree    3) neutral       4) disagree         5) strongly disagree
12.Are you satisfied with your online bank services after demonetization ?
1)Strongly agree           2) agree    3) neutral     4) disagree           5) strongly disagree
13.Your main transactions you would prefer to do by internet banking.
Please Rank (1-5) in the order of your preference
Types of IB Services
Fund transfers

Checking of your account information

Create Fixed /recurring Deposits Online

Request a Demand Draft

PayingUtility Bills

Order/Stop Payment Cheque Book

Online Shopping

Pay Taxes

Request for issuing ATM/Debit card

Loan payments / apply for loans

Booking for Train/Bus/Flight or Movie Tickets

To get Information Stocks and Mutual funds

14.As per your opinion why people are not using Internet banking.
            Please Rank (1-5) in the order of your preference
Lack of Awareness

Security Aspects

Additional Charges

Advancement in Technology

Delay in Problem solving

Lack of Computer literacy

Customers fear using IB because electronic crimes are arising greatly

Most of the customers prefer face to face banking

Lack of encouraging environment 

15. Which of the following promotional methods used by banks will encourage you to use IB
            Please Rank (1-5) in the order of your preference
Promotional Methods
Make them cheaper by reducing charges and fees

Incentives to Internet banking users

Intensive advertisement

Contacting every customer personality

Keep on reminding customers through written communication

Demonstrating on how to use services to them

Giving them guarantee of security and privacy

Giving the technological knowledge to customers through seminars

16. Are you aware of the methods which can be undertaken to make any kind of fraud?
      1) Strongly agree   2) agree    3) neutral       4) disagree         5) strongly disagree
17. Are you aware of all the methods which can be taken up to secure your transaction?
      1) Strongly agree   2) agree    3) neutral       4) disagree         5) strongly disagree

18.  Is your bank creating awareness about internet banking after demonetization?
 1) Strongly agree         2) agree    3) neutral       4) disagree         5) strongly disagree
19. Which of the following services should be improved by banks for better use of IB?
       Please indicate the frequency as 1. Strongly Agree 2. Agree 3.Neutral 4. Disagree                                                      5.Strongly disagree
IB Services
FOREX services

Global money transfers

Rapid NEFT

Tatkal loans

Help through Video conferencing

Card less Cash withdraws

Speech recognization  password

Wide International Payment system

Wide domestic payment system

Security standards

20. Which of the following services you will trust that will make your transactions secure over
            Internet banking. Please indicate the frequency as
            1. Strongly Agree 2. Agree 3.Neutral 4. Disagree 5. Strongly disagree
Security feature that you trust most in IB

Padlock Symbol

Virtual Keyboard

SMS alert 

Automatic lockout on multiple incorrect password entry

Automatic timeout if account not operated for specified time

Automatic timeout if account not operated for specified time

Mandatory use of special characters in password

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