SUMMER TRAINING PROJECT REPORT ON

CHANGING TECHNOLOGY &

CUSTOMER AWARENESS IN
HDFC BANK
FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF TWO YEAR FULLTIME MBA PROGRAMME
SUBMITTED TO SUBMITTED BY
Dr. Pooja Bha!"a D!#"a Tr!$ah!
H%a&'MBA,D%$ar(%) MBA II
)&
S%(
Ro** No. + ,-./01..-0
BABU BANARASI DAS NATIONAL INSTITUTE OF TECHNOLOGY
& MANAGEMENT
A2h!*%3h Da3 Mar4' Fa!5a6a& Roa&' L782)o9
S%33!o) + :.,-;:.,0
1
ACKNOWLEDGEMENT

At the very outset I would like to express my sincere gratitude to HDFC BA! "or providing me
with the opportunity to work with them and to undertake this pro#ect on <CHA$I$
%&CH'('$) * C+,%'-&. A/A.&&,, I HDFC BA!= I "eel proud to getting such
opportunity to get mysel" associated with esteemed organi0ation like1
HDFC BA!1
%his pro#ect comes out to 2e a great source o" learning and experience1 A lot o" e""orts have 2een
put 2y various people to make this pro#ect a success %his has greatly enhanced my knowledge a2out
the vast "ield o" -arketing that an individual pre"ers today3s scenario1
I am grate"ully to Dr.>$ro?.@ D.N.Ka22ar' H%a&'MBA' I)3!7% O? E)4!)%%r!)4 &
T%8h)o*o4"' "or providing me the plat"orm and granting me the permission to undergo the summer
training in HDFC BA!1
I grate"ully acknowledge my inde2tedness to Mr. S7)!* Ta)&o) >Mar2%!)4 Ma)a4%r@ "or
allowing to me to undergo a training session in his 2ranch and gather an in depth knowledge a2out
me "or CHA$I$ %&CH'('$) * C+,%'-&. A/A.&&,, I HDFC BA! 1 He was
supportive throughout the proceeding o" this pro#ect and inspired me all the way11
I wish to express my deep sense to gratitude and inde2tedness to Mr. A.K.A%r(a' my "aculty
mentor "or providing me all "acilities and constructive criticism, encouragement and parental
guidance my pro#ect work1 I also wish to thanks him providing me his precious any time I wanted 1
I am extremely thank"ul to my team mem2er who contri2uted their e""orts and continuous
encouragement in making this pro#ect success"ully1
(ast 2ut not the least4 I am extremely thank"ul to my "amily mem2ers and my "riends "or their
constant support and valua2le guidance1
I hope I can 2uild upon the knowledge and experience that I have gained here and make a valua2le
contri2ution towards there industry coning in "uture
Divya %ripathi
-BA567189671:;
.oll o1 ,-./01..-0
BBDI%, (ucknow

6
STUDENT DECLARATION
D!#"a Tr!$ah! student o" -BA at BBDI%- here 2y declare that the pro#ect work
entitled <CHA$I$ %&CH'('$) * C+,%'-&. A/A.&&,, I HDFC
BA!= is compiled and su2mitted under the guidance o" Dr.Pooja Bha!"a' H%a&'
MBA' BBDNITM
/hatever in"ormation "urnished in this pro#ect report is true to the 2est o" my knowledge1


SUBMITTED BY+
D!#"a Tr!$ah!
MBA>:.,-;:.,0@
Ro** No+; ,-./01..-0
BBDNIT'L782)o9

8
PREFACE
%his pro#ect is a part o" the academics carriculum re>uired "or the "ul"illment o" the two
years "ull time programme, pursuing post graduate programme in <Ba2u Banarasi Das
Institute o" %echnology * -anagement, (ucknow=
%he pro#ect called summer training pro#ect was undertaken at HDFC BA! (I-I%&D1
%his pro#ect aimed at analy0ing the market potential o" HDFC BA! vending products
with respect to its competitors
%he study was carried out interacting closely with the sales team as well as distri2utors
and dealers o" (+C!'/1 It also involved "ace to "ace interaction with di""erent
customer and corporate individuals1
Academically the pro#ects provide a uni>ue opportunity to have an exposure to real li"e
2usiness environment and to have an insight into the management intricacies, thus
helping learning to 2e more purpose "ull and meaning "ull 1
:
TABLE OF CONTENT
,1o1 %'?IC ?age o1
11 Introduction '" C'-?A) @
61 Company ?ro"ile A
81 Company ?er"ormance 16
:1 History 18
B1 ChairmanCs ?ro"ile 1B
D1 Awards and Achievements 61
E1 ?roduct In"ormation 6:
@1 .esearch -ethodology :B
A1 .esearch Design :D
171 '2#ective o" the ,tudy :@
111 Data Collection * Interpretation B8
161 Findings @:
181 Conclusion @D
1:1 ,uggestion * .ecommendation @E
1D1 (imitation @@
1E1 Bi2liography @A
B
1@1 Annexure A7
INTRODUCTION
I)ro&78!o) o I)&!a) Ba)2!)4
%he Indian 2anking can 2e 2roadly categori0ed into nationali0ed
5government owned;, private 2anks and speciali0ed 2anking institutions1
%he .eserve Bank o" India acts a centrali0ed 2ody monitoring any
discrepancies and shortcoming in the system1 ,ince the nationali0ation o"
2anks in 1ADA, the pu2lic sector 2anks or the nationali0ed 2anks have
ac>uired a place o" prominence and has since then seen tremendous
progress1 %he need to 2ecome highly customer "ocused has "orced the
slow9moving pu2lic sector 2anks to adopt a "ast track approach1 %he
unleashing o" products and services through the net has galvani0ed players
at all levels o" the 2anking and "inancial institutions market grid to look
anew at their existing port"olio o""ering1
%he Indian 2anking has "inally worked up to the competitive
dynamics o" the Fnew3 Indian market and is addressing the relevant issues
to take on the multi"arious challenges o" glo2ali0ation1 Banks that employ
I% solutions are perceived to 2e F"uturistic3 and proactive players capa2le o"
meeting the multi"arious re>uirements o" the large customer3s 2ase1 ?rivate
Banks have 2een "ast on the uptake and are reorienting their strategies
using the internet as a medium %he Internet has emerged as the new and
challenging "rontier o" marketing with the conventional physical world
tenets 2eing #ust as applica2le like in any other marketing medium1
D
%he Indian 2anking has come "rom a long way "rom 2eing a sleepy
2usiness institution to a highly proactive and dynamic entity1 %his
trans"ormation has 2een largely 2rought a2out 2y the large dose o"
li2erali0ation and economic re"orms that allowed 2anks to &xplore new
2usiness opportunities rather than generating revenues "rom conventional
streams 5i1e1 2orrowing and lending;1 %he 2anking in India is highly
"ragmented with 87 2anking units contri2uting to almost B7G o" deposits
and D7G o" advances1 Indian nationali0ed 2anks 52anks owned 2y the
government; continue to 2ethe ma#or lenders in the economy due to their
sheer si0e and penetrative networks which assures them high deposit
mo2ili0ation1
%he .eserve Bank o" India acts as a centrali0ed 2ody monitoring any
discrepancies and shortcoming in the system1 It is the "oremost monitoring
2ody in the Indian "inancial sector1 %he nationali0ed 2anks 5i1e1
government9owned 2anks; continue to dominate the Indian 2anking arena1
Industry estimates indicate that out o" 6E: commercial 2anks operating in
India, 668 2anks are in the pu2lic sector and B1 are in the private sector1
%he private sector 2ank grid also includes 6: "oreign 2anks that have started
their operations in India1 1 +nder the am2it o" the nationali0ed 2anks come
the speciali0ed 2anking institutions1 %hese co9operatives, rural 2anks "ocus
on areas o" agriculture, rural development, unlike commercial 2anks these
co9operative 2anks do not lend on the 2asis o" a prime9lending rate1 %hey
also have various tax sops 2ecause o" their holding pattern and lending
structure and hence have lower overheads1 %his ena2les them to give a
E
marginally higher percentage on savings deposits1 -any o" these
cooperative 2anks diversi"ied into speciali0ed areas 5catering to the vast
retail audience; like car "inance, housing loans, truck "inance etc1 in order
to keep pace with their pu2lic sector and private counterparts, the co9
operative 2anks too have invested heavily in in"ormation technology to
o""er high9end computeri0ed 2anking services to its clients1
NEW GENERATION BANKING
%he li2erali0e policy o" $overnment o" India permitted entry to
private sector in the 2anking, the industry has witnessed the entry o" nine
new generation private 2anks1 %he ma#or di""erentiating parameter that
distinguishes these 2anks "rom all the other 2anks in the Indian 2anking is
the level o" service that is o""ered to the customer1 Heri"y the "ocus has
always 2een centered on the custom understanding his needs, preempting
him and conse>uently delighting him with various con"igurations o"
2ene"its and a wide port"olio o" products and services1 %hese 2anks have
generally 2een esta2lished 2y promoters o" repute or 2y Fhigh value3
domestic "inancial institutions1 %he popularity o" these 2anks can 2e
gauged 2y the "act that in a short span o" time, these 2anks have gained
considera2le customer con"idence and conse>uently have shown impressive
growth rates1 %oday, the private 2anks corner almost "our per cent share o"
the total share o" deposits1 -ost o" the 2anks in this category are
concentrated in the high9growth ur2an areas in metros 5that account "or
approximately E7G o" the total 2anking 2usiness;1 /ith e""iciency 2eing
the ma#or "ocus, these 2anks have leveraged on their strengths and
@
competencies vi01 -anagement, operational e""iciency and "lexi2ility and
superior product positioning
%he private 2anks with their "ocus on 2usiness and service port"olio
have a reputation o" 2eing niche players in the industry1 A strategy that has
allowed these 2anks to concentrate on "ew relia2le high net worth companies
and individuals rather than cater to the mass market1 %hese well9chalked out
integrates strategy plans have allowed most o" these 2anks to deliver
superlative levels o" personali0ed services1 /ith the .eserve Bank o" India
allowing these 2anks to operate E7G o" their 2usinesses in ur2an areas, this
statutory re>uirement has translated into lower deposit mo2ili0ation costs
and higher margins relative to pu2lic sector 2anks1
A
I)ro&78!o) o r%a!* Ba)2!)4
Banking services o""ered to the general pu2lic, .etail 2anking services
are a group o" "inancial services that includes installment loans, residential
mortgages, e>uity credit loans, deposit services, and individual retirement
accounts1 In contrast with /holesale Banking or corporate 2anking, retail
2anking is a high volume 2usiness with many service providers competing
"or market share1 ,ome retail 2anking services, "or example, credit cards, are
among the most pro"ita2le services o""ered 2y "inancial institutions1
M%a)!)4

<.etail Banking re"ers to the dealing o" commercial 2anks with
individual customers, 2oth on lia2ilities and assets side o" the 2alance sheet
"ixed, savings current account on the lia2ilities side, and mortgages, loans
like personnel, auto, housing and educational on the assets side=
.etail 2anking is the new mantra in the 2anking sector, net 2anking,
phone 2anking, mo2ile 2anking, A%-3s and 2ill payments are the new 2u00
words that 2anks are using to lure customers

%oday much o" retail 2anking is streamlined through A%-3s or
through virtual retail 2anking known as online 2anking, retail 2anking
"ocuses strictly on consumer markets1
17
Across the glo2e, retail lending has 2een a spectacular in the
commercial 2anking sector, Institution (oans is estimated to have accounted
"or nearly one9"i"th o" all 2ank credit, Housing sector is experiencing a 2oom
in its credit 1%he retail market has decisively got trans"ormed "rom a sellers
market to 2uyers market
.etail 2anking is 2ecoming an increasingly complex concept to
de"ine1 /hile IpureI retail 2anking is generally conceived to 2e the
provision o" mass market 2anking services to private individuals, it has 2een
expanded over the years to include in many cases services provided to small9
and medium si0ed 2usinesses1 ,ome 2anks may also include their Iprivate
2ankingI 2usiness 5i1e1 services to high net worth individuals; in their
de"inition o" retail 2anking1 %he advantages o" a retail "ranchise are
numerousJ
R%a!* 6a)2!)4 !) I)&!a
In India, retail 2anking has always 2een prevalent in various "orms
ever since the evolution o" 2anking1 Co9operative 2anks that have 2een
existence in India "or over a century have always had retail thrust1 It is only
since the mid nineties that the term retail 2anking has 2een used as a means
o" rein"orcing a conscious "oray into this particular line o" 2usiness1 .etail
2anking today "or many 2anks is synonymous with mainstream 2anking,
with vast sums o" money 2eing invested in creating and sustaining a retail
2rand, "urther supported 2y re>uisite technological and sta""ing support1 It is
pertinent to ponder a2out the causes o" the shi"t 5or increase; o" "ocus
towards the retail side1
11
.etail 2anking in India is not a new phenomenon has1 It always 2een
prevalent in India in various "orms1 For the last "ew years it has 2ecome
synonymous with mainstream 2anking "or many 2anks1
%he typical products o""ered in the Indian retail92anking segment are
housing loans, Consumption loans "or purchase o" dura2les, auto loans,
credit cards and educational loans1 %he loans are marketed under attractive
2rand names to di""erentiate the products o""ered 2y di""erent 2anks1 .etail
lending has turned out to 2e a key pro"it driver "or 2anks within the retail
segment4 the housing loans had the least gross asset impairment1 In "act,
retailing make ample 2usiness sense in the 2anking sector1
Factors contri2uting to the growth o" retail 2usiness
Th% ?o**o9!)4 ar% h% ?a8or3' 9h!8h 8o)r!67% o h% 4ro9h o? R%a!*
673!)%33
,. Th% %8o)o(!8 $ro3$%r!" a)& h% 8o)3%B7%) !)8r%a3% !)
$7r8ha3!)4 $o9%r ha#% 4!#%) a ?!**!$ o a 8o)37(%r 6oo(.
:. Th% 8ha)4!)4 8o)37(%r &%(o4ra$h!83 !)&!8a% #a3 $o%)!a*
For 4ro9h !) 8o)37($!o) 6oh B7a*!a!#%*" a)& B7a)!a!#%*"
16
-. Th% T%8h)o*o4!8a* !))o#a!o)3 r%*a!)4 o !)8r%a3!)4 73% o? 8r%&!
C &%6! 8ar&3' ATM3' &!r%8 &%6!3 a)& $ho)% 6a)2!)4 ha3
8o)r!67%& o h% 4ro9h o? r%a!* 6a)2!)4 !) I)&!a
0. D%8*!)% !) !)%r%3 ra%3 ha#% a*3o 8o)r!67%& o h% 4ro9h o?
r%a!* 8r%&! 6" 4%)%ra!)4 h% &%(a)& ?or 378h 8r%&!
'pportunities and challenges o" retail 2anking in India
R%a!* 6a)2!)4 ha3 !((%)3% o$$or7)!!%3 !) a 4ro9!)4 %8o)o(" *!2%
I)&!a.
Th% r!3% o? h% I)&!a) (!&&*% 8*a33 !3 a) !($ora) 8o)r!67or"
?a8or !) h!3 r%4ar&. Th% $%r8%)a4% o? (!&&*% o h!4h;!)8o(% I)&!a)
ho73%ho*&3 !3 %D$%8%& o 8o)!)7% r!3!)4. Th% "o7)4%r $o$7*a!o) )o
o)*" 9!%*&3 !)8r%a3!)4 $7r8ha3!)4 $o9%r. B7 a3 ?ar a3 a8B7!r!)4
$%r3o)a* &%6 !3 8o)8%r)%&' h%" ar% $%rha$3 (or% 8o(?ora6*% ha)
$r%#!o73 4%)%ra!o)3. I($ro#!)4 8o)37(%r $7r8ha3!)4 $o9%r' 8o7$*%&
9!h (or% *!6%ra* a!7&%3 o9ar& $%r3o)a* &%6' !3 8o)r!67!)4 o
I)&!aE3 r%a!* 6a)2!)4 3%4(%).
Th% 8o(6!)a!o) o? h% a6o#% ?a8or3 $ro(!3%3 3763a)!a* 4ro9h
!) h% r%a!* 3%8or'. So(% o? h% 2%" $o*!8" !337%3 r%*%#a) o h% r%a!*;
6a)2!)4 3%8or ar%+ ?!)a)8!a* !)8*73!o)' r%3$o)3!6*% *%)&!)4' a)& a88%33
o ?!)a)8%' *o)4;%r( 3a#!)43' ?!)a)8!a* 8a$a6!*!"' 8o)37(%r $ro%8!o)'
r%47*a!o) a)& ?!)a)8!a* 8r!(% $r%#%)!o).
18
R%a!* 6a)2!)4 !3 a 6a)2!)4 3%r#!8% ha !3 4%ar%& $r!(ar!*"
o9ar& !)&!#!&7a* 8o)37(%r3. R%a!* 6a)2!)4 !)#o*#%3 9o a3$%83 !.%.
B73!)%33 Ba)2!)4 9h%r% ra)3a8!o)3 ar% 8arr!%& o7 9!h !)&73r!%3
a)& or4a)!5a!o)3' 9h%r% a3 a UTI !)&!#!&7a* 873o(%r3 ar% h% %)&
73%r3 o 9ho( h% I)3!7!o) Loa)3 378h a3 $%r3o)a*' a7o a)& ho73!)4
*oa)3 ar% $ro#!&%&
%ypes o" .etail Banks
1; Commercial 2ank has two possi2le meaningsJ
Commercial 2ank is the term used "or a normal 2ank to
distinguish it "rom an investment 2ank1
Commercial 2ank can also re"er to a 2ank or a division o" a
2ank that mostly deals with deposits and loans "rom
corporations or large 2usinesses,
6; Community development 2ank are regulated 2anks that provide
"inancial services and credit to underserved markets or populations1
8; ?rivate Banks manage the assets o" high net worth individuals1
:; ,avings 2ank accepts savings deposits1
o ?ostal savings 2anks are savings 2anks associated with national
postal systems1
1:
INTRODUCTION OF E;BANKING
%he world is changing at a staggering rate and technology is considered to
2e the key driver "or these changes around us1 An analysis o" technology and
its uses show that it has permeated in almost every aspect o" our li"e1 -any
activities are handled electronically due to the acceptance o" in"ormation
technology at home as well as at workplace1 ,lowly 2ut steadily, the Indian
customer is moving towards the internet 2anking1 %he A%- and the et
transactions are 2ecoming popular1 But the customer is clear on one thing
that he wants net92anking to 2e simple and the 2anking sector is matching its
steps to the march o" technology1 &92anking or 'nline 2anking is a generic
term "or the delivery o" 2anking services and products through the electronic
channels such as the telephone, the internet, the cell phone etc1 %he concept
and scope o" e92anking is still evolving1 It "acilitates an e""ective payment
and accounting system there2y enhancing the speed o" delivery o" 2anking
services considera2ly1 ,everal initiatives have 2een taken 2y the
$overnment o" India as well as the .BI 5.eserve Bank o" India;4 have
"acilitated the development o" e92anking in India1 %he government o" India
enacted the I% Act, 6777, which provides legal recognition to electronic
transactions and other means o" electronic commerce1 %he .BI has 2een
preparing to upgrade itsel" as regulator and supervisor o" the technologically
dominated "inancial system1 It issued guidelines on the risks and controls in
computer and telecommunication systems to all 2anks, advising them to
evaluate the risks inherent in the systems and put in place ade>uate control
mechanisms to address these risks1
,., WHAT IS E;BANKINGF
1B
&lectronic 2anking is one o" the truly widespread avatars o" &9commerce the
world over1 Harious authors de"ine &9Banking di""erently 2ut the most
de"inition depicting the meaning and "eatures o" &9Banking are as "ollowsJ
11 Banking is a com2ination o" two, &lectronic technology and Banking1
61 &lectronic Banking is a process 2y which a customer per"orms 2anking
%ransactions electronically without visiting a 2rick9and9mortar institutions1
81 &9Banking denotes the provision o" 2anking and related service through
&xtensive use o" in"ormation technology without direct recourse to the 2ank
2y the customer1
NEED FOR E;BANKING
'ne has to approach the 2ranch in person, to withdraw cash or deposit a
che>ue or re>uest a statement o" accounts1 In true Internet 2anking, any
in>uiry or transaction is processed online without any re"erence to the
2ranch 5anywhere 2anking; at any time1 ?roviding Internet 2anking is
increasingly 2ecoming a Ineed to haveI than a Inice to haveI service1 %he
net 2anking, thus, now is more o" a norm rather than an exception in many
developed countries due to the "act that it is the cheapest way o" providing
2anking services1 Banks have traditionally 2een in the "ore"ront o"
harnessing technology to improve their products, services and e""iciency1
%hey have, over a long time, 2een using electronic and telecommunication
networks "or delivering a wide range o" value added products and services1
%he delivery channels include direct dial K up connections, private networks,
pu2lic networks etc and the devices include telephone, ?ersonal Computers
including the Automated %eller -achines, etc1 /ith the popularity o" ?Cs,
easy access to Internet and /orld /ide /e2 5///;, Internet is
1D
increasingly used 2y 2anks as a channel "or receiving instructions and
delivering their products and services to their customers1 %his "orm o"
2anking is generally re"erred to as Internet Banking, although the range o"
products and services o""ered 2y di""erent 2anks vary widely 2oth in their
content and sophistication1
HISTORY OF E; BANKING
%he precursor "or the modern home online 2anking services were the
distance 2anking services over electronic media "rom the early C@7s1 %he
term online 2ecame popular in the late C@7s and re"ers to the use o" a
terminal, key2oard and %H 5or monitor; to access the 2anking system using
a phone line1 FHome 2anking3 can also re"er to the use o" a numeric keypad
to send tones down a phone line with instructions to the 2ank1 'nline
services started in ew )ork in 1A@1 when "our o" the city3s ma#or 2anks
5Citi2ank, Chase -anhattan, Chemical and -anu"acturers Hanover; o""ered
home 2anking services using the videotex system1 Because o" the
commercial "ailure o" videotex these 2anking services never 2ecame popular
except in France where the use o" videotex 5-initel; was su2sidised 2y the
telecom provider and the +!, where the ?restel system was used1 %he +!3s
"irst home online 2anking services were set up 2y the ottingham Building
,ociety 5B,; in 1A@8 5IHistory o" the ottinghamI .etrieved on 677E9169
1:1;1 %he system used was 2ased on the +!Cs ?restel system and used a
computer, such as the BBC -icro, or key2oard 5%andata %d1:77; connected
to the telephone system and television set1 %he system 5known as
CHomelinkC; allowed on9line viewing o" statements, 2ank trans"ers and 2ill
payments1 In order to make 2ank trans"ers and 2ill payments, a written
instruction giving details o" the intended recipient had to 2e sent to the B,
1E
who set the details up on the Homelink system1 %ypical recipients were gas,
electricity and telephone companies and accounts with other 2anks1 Details
o" payments to 2e made were input into the B, system 2y the account
holder via ?restel1 A che>ue was then sent 2y B, to the payee and an
advice giving details o" the payment was sent to the account holder1 BAC,
was later used to trans"er the payment directly1 ,tan"ord Federal Credit
+nion was the "irst "inancial institution to o""er online internet 2anking
services to all o" its mem2ers in 'ct, 1AA:1
EAOLUTION OF E;BANKING
%he story o" technology in 2anking started with the use o" punched card
machines like Accounting -achines or (edger ?osting -achines1 %he use o"
technology, at that time, was limited to keeping 2ooks o" the 2ank1 It "urther
developed with the 2irth o" online real time system and vast improvement in
telecommunications during late 1AE73s and 1A@73s1it resulted in a revolution
in the "ield o" 2anking with <convenience 2anking= as a 2u00word1 %hrough
Convenience 2anking, the 2ank is carried to the doorstep o" the customer1
%he 1AA73s saw the 2irth o" distri2uted computing technologies and
.elational Data Base -anagement ,ystem1 %he 2anking industry was
simply waiting "or these technologies1 ow with distri2ution technologies,
one could con"igure dedicated machines called "ront9end machines "or
customer service and risk control while communication in the 2atch mode
without hampering the response time on the "rontend machine1
Tra&!!o)a* 6a)2!)4
$unpowder
?ersonali0ed services
%ime consuming
1@
(imited access
A!r7a* or E;6a)2!)4
uclear charged
.eal time transactions,
Integrated plat"orm,
All time access
Intense competition has "orced 2anks to rethink the way they operated their
2usiness1 %hey had to reinvent and improve their products and services to
make them more 2ene"icial and cost e""ective1 %echnology in the "orm o" &9
2anking has made it possi2le to "ind alternate 2anking practices at lower
costs1
-ore and more people are using electronic 2anking products and services
2ecause large section o" the 2anks "uture customer 2ase will 2e made up o"
computer literate customer, the 2anks must 2e a2le to o""er these customer
products and services that allow them to do their 2anking 2y electronic
means1 I" they "ail to do this will, simply, not survive1 ew products and
services are emerging that are set to change the way we look at money and
the monetary system1
,.: USAGE OF E;BANKING
%he rise in the e9commerce and the use o" internet in its "acilitation along
with the enhanced online security o" transactions and sensitive in"ormation
has 2een the core reason "or the penetration o" online 2anking in everyday
li"e1 According to the latest o""icial "igures "rom the o""ice o" ational
,tatistics 5 ', 677E; indicate that su2scriptions to the internet has grown
more than B7G "rom 6B million in 677B to :B million in 677E in India1 It has
1A
also 2een estimated that D7G o" the population in India use internet in their
daily lives1 %he "undamental shi"t towards the involvement o" the customer
in the "inancial service provision with the help o" the technology especially
internet has helped to reduce the costs o" "inancial institutions as well as
helped client to use the service at anytime and "rom virtually anywhere with
access to an internet connection1 %he use o" electronic 2anking has removed
personnel that "acilitate the transactions and has placed additional
responsi2ilities on the customers to transact with the service1 %he
computeri0ation o" the 2anking operations has made maximum impact onJ9
1; Internal Accounting ,ystem
6; Customer service
8; Diversi"ication o" system
INTERNET BANKING AERSUS TRADITIONAL BANKING
In spite o" so many "acilities that Internet 2anking o""ers us, we still seem to
trust our traditional method o" 2anking and is reluctant to use online
2anking1 But here are "ew cases where Internet 2anking will turn out to 2e a
2etter option in terms o" saving your money1
C,top paymentC done through Internet 2anking will not cost any extra "ees 2ut
when done through the 2ranch, the 2ank may charge you .s B7 per che>ue
plus the service tax1 %hrough Internet 2anking, you can check your
transactions at any time o" the day, and as many times as you want to1 'n the
other hand, in a traditional method, you get >uarterly statements "rom the
2ank and i" you re>uest "or a statement at your re>uired time, it may turn out
to 2e an expensive a""air1 %he 2ranch may charge you .s 6B per page, which
includes only 87 transactions1 -oreover, the 2ank 2ranch would take eight
67
days to deliver it at your doorstep1 I" the "und trans"er has to 2e made
outstation, where the 2ank does not have a 2ranch, the 2ank would demand
outstation charges1 /hereas with the help o" online 2anking, it will 2e
a2solutely "ree "or you1 As per the Internet and -o2ile Association o" IndiaCs
report on online 2anking 677D, I%here are many advantages o" online
2anking1 It is convenient it isnCt 2ound 2y operational timings, there are no
geographical 2arriers and the services can 2e o""ered at a miniscule cost1I
,.- DIAGRAM OF E;BANKING SYSTEM
E;BANKING PRODUCTS
61
A7o(a%& T%**%r Ma8h!)% >ATM;J %hese are cash dispensing machine,
which are "re>uently seen at 2anks and other locations such as shopping
centers and 2uilding societies1 %heir main purpose is to allow customer to
draw cash at any time and to provide 2anking services where it would not
have 2een via2le to open another 2ranch e1g1 on university campus1 An
a7o(a%& %**%r (a8h!)% or a7o(a!8 %**%r (a8h!)% 5ATM; is a
computeri0ed telecommunications device that provides a "inancial
institutionCs customers a method o" "inancialL transactions in a pu2lic space
without the need "or a human clerk or 2ank teller1 'n most modern A%-s,
the customer identi"ies him or hersel" 2y inserting a plastic A%- card with a
magnetic stripe or a plastic smartcard with a chip that contains his or her
card num2er and some security in"ormation, such as an expiration date or
CHC 5CHH;1 ,ecurity is provided 2y the customer entering a personal
identi"ication num2er 5?I;1+sing an A%-, customers can access their 2ank
accounts in order to make cash withdrawals 5or credit card cash advances;
and check their account 2alances1 -any A%-s also allow people to deposit
cash or checks, trans"er money 2etween their 2ank accounts, pay 2ills, or
purchase goods and services1,ome o" the advantages o" A%- to customers
areJ9
M A2ility to draw cash a"ter normal 2anking hours
M Nuicker than normal cashier service
M Complete security as only the card holder knows the ?I
M Does not #ust operate as a medium o" o2taining cash1
M Customer can sometimes use the services o" other 2ank A%-3s1
T%*% 6a)2!)4 or Pho)% Ba)2!)4+ %elephone 2anking is relatively new
&lectronic Banking ?roduct1 However it is "astly 2ecoming one o" the most
popular products1 Customer can per"orm a num2er o" transactions "rom the
66
convenience o" their own home or o""ice4 in "act "rom anywhere they have
access to phone1 Customers can do "ollowingJ9
M Check 2alances and statement in"ormation
M %rans"er "unds "rom one account to another
M ?ay certain 2ills
M 'rder statements or che>ue 2ooks
M Demand dra"t re>uest
%his "acility is availa2le with the help o" Hoice .esponse ,ystem 5H.,;1
%his system 2asically, accepts only %'& dialed input1 (ike the A%-
customer has to "ollow particular process, initially account num2er and
telephone ?I are "ed "or the process to start1 Also the H., system provides
the users within additional "acilities such as changing existing password with
the new desired, in"ormation a2out new products, current interest rates etc1
Mo6!*% Ba)2!)4+ -o2ile 2anking comes in as a part o" the 2anks initiative
to o""er multiple channels 2anking providing convenience "or its customer1 A
versatile multi"unctional, "ree service that is accessi2le and viewa2le on the
monitor o" mo2ile phone1 -o2ile phones are playing great role in Indian
2anking9 2oth directly and indirectly1 %hey are 2eing used 2oth as 2anking
and other channels1 I)%r)% Ba)2!)4+ %he advent o" the Internet and the
popularity o" personal computers presented 2oth an opportunity and a
challenge "or the 2anking industry1 For years, "inancial institutions have used
power"ul computer networks to automate million o" daily transactions4
today, o"ten the only paper record is the customer3s receipt at the point o"
sale1 ow that their customers are connected to the Internet via personal
computers, 2anks envision similar advantages 2y adopting those same
internal electronic processes to home use1 Banks view online 2anking as a
power"ul <value added= tool to attract and retain new customers while
68
helping to eliminate costly paper handling and teller interactions in an
increasingly competitive 2anking environment1 In India "irst one to move
into this area was HDFC Bank1 %hey started we2 2ased 2anking as early as
august 1AAE1
,.0 TYPES OF INTERNET BANKING OR E;BANKING
+nderstanding the various types o" Internet 2anking will help examiners
assess the risks involved1 Currently, the "ollowing three 2asic kinds o"
Internet 2anking are 2eing employed in the marketplace1
I)?or(a!o)a*; this is the 2asic level o" Internet 2anking1 %ypically, the
2ank has marketing in"ormation a2out the 2ank3s products and services on a
standalone server1 %he risk is relatively low, as in"ormational systems
typically have no path 2etween the server and the 2ank3s internal network1
%his level o" Internet 2anking can 2e provided 2y the 2anks or outsourced1
/hile the risk to a 2ank is relatively low, the server or we2 site may 2e
vulnera2le to alteration1 Appropriate controls there"ore must 2e in place to
prevent unauthori0ed alterations to the 2ank3s server or we2 site1
Co((7)!8a!#%; this type o" Internet 2anking systems and the customer1
%he interaction 2etween the 2ank3s system and the customer1 %he interaction
may 2e limited to electronic mail, account en>uiry, loan applications, or
static "ile updates 5name and address change;1 Because these servers may
have a path to the 2ank3s internal networks, the risk is higher with this
con"iguration than with in"ormational systems1 Appropriate controls need to
2e in the place to prevent, monitor, and alert management o" any
6:
unauthori0ed attempt to access the 2ank3s internal networks and computer
systems1 Hirus controls also 2ecome much more critical in this environment1
Tra)3a8!o)a*; this level o" Internet 2anking allows customers to execute
transactions1 ,ince a path typically exists 2etween the server and the 2ank or
outsourcer3s internal network, this is the highest risk architecture and must
have the strongest controls1 Customer transactions can include accessing
accounts, paying 2ills, trans"erring "unds etc1
FEATURES OF E;BANKING
Tra)3a8!o)a*+ 5e1g1 per"orming a "inancial transaction such as an account to
account trans"er, paying a 2ill or applications like applying "or a loan, new
account, etc1;
M &lectronic Bill ?resentment and ?ayment 5&B??;
M Funds trans"er 2etween customers own checking and savings accounts, or
to another customers account1
M Investment purchase or sale1
M (oan application and transactions such as repayments1
No);ra)3a8!o)a*+ 5e1g1 online statements, Check links, Chat, Co92rowsing
etc1;
Financial Institution Administration9 "eatures allowing "inancial institutions
to manage the online experience o" their end users1 A,?O Hosting
Administration K "eatures allowing the hosting company to administer the
solution across "inancial institution1
,./ ADAANTAGE & DISADAANTAGE OF E ; BANKING
6B
ADAANTAGES OF E;BANKING+;
M Co)#%)!%)8%9 +nlike your corner 2ank, online 2anking sites never close4
they3re availa2le 6: hours a day, seven days a week, and they3re only a
mouse click away1 /ith pressures on time and longer travelling periods,
more and more people "ind it tiresome waiting in >ueues1 ?eople want
"lexi2ility, and Internet 2anking o""ers #ust that1
M U6!B7!"9 I" you3re out o" state or even out o" the country when a money
pro2lem arises, you can log on instantly to your online 2ank and take care o"
2usiness, 6:LE1
M Tra)3a8!o) 3$%%&9 'nline 2ank sites generally execute and con"irm
transactions at or >uicker than A%- processing speeds1
M E??!8!%)8";)ou can access and manage all o" your 2ank accounts,
including I.A3s, CDs, even securities, "rom one secure site1
M E??%8!#%)%33; -any online 2anking sites now o""er sophisticated tools,
including account aggregation, stock >uotes, rate alert and port"olio
managing program to help you manage all o" your assets more e""ectively1
-ost are also compati2le with money managing programs such as >uicken
and -icroso"t money1
M Ch%a$%r a*%r)a!#%J 9 /ith increasing competition, it seems to 2e the cost
"actor that is driving 2anks to o""er the "acility1 %he Internet is still a very
cheap alternative to opening a physical 2ranch, and most o" the push seems
to 2e coming "rom the supply side1 %he costs o" a 2anking service through
the Internet "orm a "raction o" costs through conventional methods1
M Fro( 3)o6 #a*7% o )%8%33!"J; A couple o" years ago, there was a 2elie"
even among 2ankers that customers opening new accounts wanted the online
2anking "acility, #ust to I"eel goodI and very "ew o" them actually used the
services1 %oday, 2ankers 2elieve that the trend "rom Pnice to haveC is
6D
changing to Pneed to haveC1 %he Isno2 valueI o" 2anking with an
organisation that could o""er service on the Internet has given way to a
genuine necessity, he "eels1 IIt all depends on how 2usy a person is1I
DISADAANTAGES OF INTERNET BANKING
M Sar;7$ (a" a2% !(%9In order to register "or your 2ank3s online
program, you will pro2a2ly have to provide ID and sign a "orm at a 2ank
2ranch1 I" you and your spouse wish to view and manage their assets
together online, one o" you may have to sign a dura2le power o" attorney
2e"ore the 2ank will display all o" your holdings together1
M L%ar)!)4 87r#%39 Banking sites can 2e di""icult to navigate at "irst1 ?lan to
invest some time andLor read the tutorials in order to 2ecome com"orta2le in
your virtual lo22y1
M Ba)2 3!% 8ha)4%3; &ven the largest 2anks periodically upgrade their
online programs, adding new "eatures in un"amiliar places1 In some cases,
you may have to re9enter account in"ormation1
,.G HOW E;BANKING CAN EASE YOUR LIFE
Indian 2anks are trying to make your li"e easier1 ot #ust 2ill payment, you
can make investments, shop or 2uy tickets and plan a holiday at your
"ingertips1 In "act, sources "rom HDFC Bank tell us, I'ur Internet 2anking
2ase has 2een growing at an exponential pace over the last "ew years1
Currently around E@ per cent o" the 2ankCs customer 2ase is registered "or
Internet 2anking1I %o get started, all you need is a computer with a modem
or other dial9up device, a checking account with a 2ank that o""ers online
6E
service and the patience to complete a2out a one9page application9 which
can usually 2e done online1 )ou can avail the "ollowing services1
,. B!** $a"(%) 3%r#!8%J &ach 2ank has tie9ups with various utility
companies, service providers and insurance companies, across the country1 It
"acilitates the payment o" electricity and telephone 2ills, mo2ile phone,
credit card and insurance premium 2ills1 %o pay 2ills, a simple one9time
registration "or each 2iller is to 2e completed1 ,tanding instructions can 2e
set, online to pay recurring 2ills, automatically1 'ne9time standing
instruction will ensure that 2ill payments do not get delayed due to lack o"
time1 -ost interestingly, the 2ank does not charge customers "or online 2ill
payment1
:. F7)& ra)3?%rJ Any amount can 2e trans"erred "rom one account to
another o" the same or any another 2ank1 Customers can send money
anywhere in India1 ?ayee3s account num2er, his 2ank and the 2ranch is
needed to 2e mentioned a"ter logging in the account1 %he trans"er will take
place in a day or so, whereas in a traditional method, it takes a2out three
working days1 HDFC Bank says that online 2ill payment service and "und
trans"er "acility have 2een their most popular online services1
-. Cr%&! 8ar& 873o(%r3J Credit card users have a lot in store1 /ith
Internet 2anking, customers can not only pay their credit card 2ills online
2ut also get a loan on their cards1 ot #ust this, they can also apply "or an
additional card, re>uest a credit line increase and $od "or2id i" you lose your
credit card, you can report lost card online1
0. Ra!*9a" $a33J %his is something that would interest all the aam #anta1
Indian .ailways has tied up with HDFC 2ank and you can now make your
railway pass "or local trains online1 %he pass will 2e delivered to you at your
6@
doorstep1 But the "acility is limited to -um2ai, %hane, asik, ,urat and
?une1 %he 2ank would #ust charge .s 17 Q 1616: percent o" service tax1
/. I)#%3!)4 hro74h I)%r)% 6a)2!)4J 'pening a "ixed deposit account
cannot get easier than this1 An FD can 2e opened online through "unds
trans"er1 'nline 2anking can also 2e a great "riend "or la0y investors1 ow
investors with interlinked demat account and 2ank account can easily trade
in the stock market and the amount will 2e automatically de2ited "rom their
respective 2ank accounts and the shares will 2e credited in their demat
account1 -oreover, some 2anks even give the "acility to purchase mutual
"unds directly "rom the online 2anking system1 ,o it removes the worry
a2out "illing those 2ig "orms "or mutual "unds, they will now 2e #ust a "ew
clicks away1 owadays, most leading 2anks o""er 2oth online 2anking and
demat account1 However i" the customer have there demat account with
independent share 2rokers, then need to sign a special "orm, which will link
your two accounts1
G. R%8har4!)4 "o7r $r%$a!& $ho)%J ow there is no need to rush to the
vendor to recharge the prepaid phone, every time the talk time runs out1 Rust
top9up the prepaid mo2ile cards 2y logging in to Internet 2anking1 By #ust
selecting the operatorCs name, entering the mo2ile num2er and the amount
"or recharge, the phone is again 2ack in action within "ew minutes1
1. Sho$$!)4 a "o7r ?!)4%r!$3J (eading 2anks have tie ups with various
shopping we2sites1 /ith a range o" all kind o" products, one can shop online
and the payment is also made conveniently through the account1 'ne can
also 2uy railway and air tickets through Internet 2anking1
6A
CHANGING TECHNOLOGIES
ELECTRONIC BANKING; HDFC BANK
%he technologies areJ9
%elephone 2anking
-o2ile 2anking
IH.
A%-
&F%
AF%
TELEPHONE BANKING
/hen 2anking and "inancial services are delivered to the
customer o" a 2ank through the medium o" telephone is called
as telephone1
It uses AH.5automated voice response;
In this technology a customer uses the tone9phone to send
digiti0ed data messages to the system in order to activate a
particular service1 the system contains so"tware to recogni0e
the toneOword1
MOBILE BANKING
It re"ers to the 2anking activity that are carried out on mo2ile
phone1
Current -o2ile Banking ApplicationsJ
o ,-, Banking
o /A? Banking
o ,%! 5,im %oolkit; Banking
87
IAR
Interactive Hoice .esponse 5IH.; is a so"tware application that
accepts a com2ination o" voice telephone input and touch9tone
keypad selection and provides appropriate responses in the
"orm o" voice
IH. has come into our li"e at the 2eginnings o" A73s1
First step in %elephone Banking
?eak transaction volume in salary payment days "or 2alance
in>uiry
Integrated with A%- system
ATM>AUTOMATED TELLER MACHINE@
'n most modern A%-s, the customer is identi"ied 2y
inserting a plastic A%- card with a magnetic stripe or a
plastic smart card with a chip, that contains a uni>ue card
num2er and some security in"ormation such as an expiration
date or CHHC 5CHH;1 Authentication is provided 2y the
customer entering a personal identi"ication num2er 5?I;1
+sing an A%-, customers can access their 2ank accounts in
order to make cash withdrawals, credit card cash advances, and
check their account 2alances as well as purchase prepaid
cellphone credit1
ELECTRONIC FUND TRANSFER
&lectronic Funds %rans"er 5&F%; is a system o" trans"erring
money "rom one 2ank account directly to another without any
paper money changing hands1 'ne o" the most widely9used
81
&F% programs is Direct Deposit, in which payroll is deposited
straight into an employeeCs 2ank account1
&F% is sa"e, secure, e""icient, and less expensive than paper
check payments and collections1
AUTOMATED FUND TRANSFER
%he automatic "unds trans"er is a "inancial transaction that
ensures "unds are sent and received on schedule without the
need "or human intervention1
SECURITY MEASURES
%here exist two di""erent security methods "or online 2anking1
11 %he ?IO%A system where the ?I represents a password, used
"or the login and %As representing one9time passwords to
authenticate transactions1 %As can 2e distri2uted in di""erent ways,
a1 the most popular one is to send a list o" %As to the online
2anking user 2y postal letter1 %he most secure way o" using %As is
to generate them 2y need using a security token1 %hese token
generated %As depend on the time and a uni>ue secret, stored in
the security token 5this is called two9"actor authentication or 6FA;1
+sually online 2anking with ?IO%A is done via a we2 2rowser
using ,,( secured connections, so that there is no additional
encryption needed1
21 Another way to provide %As to an online 2anking user, is
to send the %A o" the current 2ank transaction to the userCs 5$,-;
mo2ile phone via ,-,1 %he ,-, text usually >uotes the transaction
amount and details, the %A is only valid "or a short period o" time1
86
&specially in $ermany and Austria, many 2anks have adapted this
I,-, %AI service as it is considered as very secure1
61 ,ignature 2ased online 2anking where all transactions are signed
and encrypted digitally1 %he !eys "or the signature generation and
encryption can 2e stored on smartcards or any memory medium,
depending on the concrete implementation1
COUNTER MEASURES
%here exist several countermeasures which try to avoid attacks1
11 D!4!a* 8%r!?!8a%3 are used against phishing and pharming,
the use o" class98 card readers is a measure to avoid
manipulation o" transactions 2y the so"tware in signature
2ased online 2anking variants1
61 %o protect their systems against %ro#an horses, users should
use #!r73 38a))%r3 and 2e care"ul with downloaded so"tware
or e9mail attachments
88
ARCHITECTURE
In the internet architecture there is a /&B
,&.H&.1 %o the we2 server the BA! ,&.H&. is
connected1 Banks access the customer data2ase and then get
connected to the we2 server "or the transactions1 %he we2
8:
server is connected to the internet1 Firewalls are used "or the
protection1
MAIN CONCERNS IN INTERNET BANKING
In a survey conducted 2y the 'nline Banking Association,
mem2er institutions rated security as the most important issue o"
online 2anking1 %here is a dual re>uirement to protect customersC
privacy and protect against "raud1 Banking ,ecurelyJ 'nline
Banking via the /orld /ide /e2 provides an overview o"
Internet commerce and how one company handles secure 2anking
"or its "inancial institution clients and their customers1 ,ome 2asic
in"ormation on the transmission o" con"idential data is presented
in ,ecurity and &ncryption on the /e21 ?C -aga0ine 'nline also
o""ers a primerJ How &ncryption /orks1 A multi9layered security
architecture comprising "irewalls, "iltering routers, encryption and
digital certi"ication ensures that your account in"ormation is
protected "rom unauthorised accessJ
Firewalls and "iltering routers ensure that only the legitimate
Internet users are allowed to access the system1
&ncryption techni>ues used 2y the 2ank 5including the
sophisticated pu2lic key encryption; would ensure that
privacy o" data "lowing 2etween the 2rowser and the In"inity
system is protected1
Digital certi"ication procedures provide the assurance that the
data you receive is "rom the In"inity system1
8B
ADAANTAGES OF INTERNET BANKING
11B&&FI%, F'. BA!,
(arge customer coverage
(ower cast o" operation
International promotion o" products and services
Increasing customer satis"action and providing
personali0ed relationship with customers1
61 B&&FI%, F'. ,-A(( %' -&DI+- B+,I&,,
to run its operations more e""ectively
lower cost than traditional "inancial management
mechanisms1
81 B&&FI%, F'. C+,%'-&.,
Convenience96: hrs a day and E days a week
Cost9 reducing trans"er "ees
,peed9 "aster circulation o" assets
Competitiveness9"ostering competition in "inancial
market1
Communication9 communicate easily
8D
&nvironmental9a2olishing the uses o" paper
DISADAANTAGES OF INTERNET BANKING
8E
I)%r)% 6a)2!)4 3%r#!8%3 $ro#!&% a )7(6%r o? 6%)%?!3 o
8o)37(%r3. D%3$!% h% 4ro9!)4 $o$7*ar!" o? !)%r)% 6a)2!)4'
! 8a))o 6% &%)!%& ha 3o(% $%o$*% 3!** r%(a!) h%3!a) &o!)4
ra)3a8!o)3 o)*!)% %3$%8!a**" 9h%r% (o)%" !3 8o)8%r)%&. So(%
o? h% &!3a&#a)a4%3 ar% +;
,. I($%r3o)a*.; Do!)4 ra)3a8!o)3 o) h% !)%r)% 8a) 6% #%r"
!($%r3o)a*. I) oh%r 9or&3' "o7 o)*" &o 673!)%33 9!h h% 73% o?
a 8o($7%r. No !)&!#!&7a* o r%8%!#% a)& 8h%82 "o7r (o)%" or
8orr%8 3o(% 9ro)4 !)?or(a!o) ha "o7 (!4h ha#% 9r!%) o)
a 8%ra!) ?or(. A)& 3o ?or $%o$*% 8o(?ora6*% &%a*!)4 9!h r%a*
$%o$*% 9ho $ro#!&% $%r3o)a*!5%& 3%r#!8%3 a)& 73!)4 $a$%r a)&
(o)%"' !)%r)% 6a)2!)4 !3 )o !&%a*.
:. La82 o? r73; Ma)" $%o$*% 3!** &o)E r73 h% !)%r)%. For
h% )%9 73%r3 9ho ha#% $%r?or(%& ?!)a)8!a* ra)3a8!o)3 ?or
o)*" a ?%9 !(%3' h%" (a" 3!** ha#% h!3 &o76 9h%h%r or )o
h%" &!& h% r!4h h!)4 378h a3 8*!82%& h% r!4h 67o) a)& 3o
o). Th%" 8a) o)*" 6% 8o(?ora6*% o)8% h%" $r!) h% ra)3a8!o)
r%8%!$ a)& h% ra)3a8!o) a$$%ar%& o) h% 6a)2 3a%(%).
-. D!??!87* ?or ?!r3 !(%r3; For a ?!r3 !(% 73%r' )a#!4a!)4
hro74h a 9%63!% o? a) !)%r)% 6a)2 (a" 6% har& a)& (a"
a2% 3o(% !(%. O$%)!)4 a) a88o7) 8o7*& a*3o a2% !(% a3
3o(% 3!%3 a32 ?or )7(%ro73 $%r3o)a* &%a!*3 !)8*7&!)4 a $hoo
!&%)!?!8a!o) 9h!8h 8a) !)8o)#%)!%)8% h% $o%)!a* 873o(%r.
B%8a73% o? h!3 8o($*%D!"' h%" (a" 6% &!38o7ra4%& o 73% h!3
!)%r)% 6a)2!)4 3%r#!8%. T7or!a*3 a)& *!#% 873o(%r 37$$or
(a" 6% $ro#!&%&' ho74h' o h%*$ h% 8*!%) !) h!3 or h%r )%%&%&
a323 3o !E3 6%3 o a2% h% !(% o 2)o9 h% #!r7a*
8@
%)#!ro)(%).
0. S%87r!" ?ra7&.; Ma)" $%o$*% 3h" a9a" ?ro( !)%r)% 6a)2!)4
6%8a73% o? h% 3%87r!" hr%a. Th%" 8a)E h%*$ 67 9orr" a6o7
h!3 a3$%8 9ha 9!h )%93 o) ?ra7&7*%) 6a)2 ra)3a8!o)3 ha
$o$ 7$ %#%r" )o9 a)& h%). Ho9%#%r' h!3 3ho7*& )o 6% a
$ro6*%( a3 6a)23 ha $ro#!&% !)%r)% 6a)2!)4 3%r#!8%3
$r!or!!5% 3%87r!" a6o#% a)"h!)4 %*3%. S!)8% h%" #a*7% h%!r
873o(%r3' h%" a*9a"3 73% h% (o3 a&#a)8%& 3%87r!"
%8h)o*o4" !) $ro%8!)4 h%!r 9%63!%3.
/. Ba)2 3!% 8ha)4%3; Mo3 6a)23 7$4ra&% h%!r o)*!)%
$ro4ra(3 o) a $%r!o&!8 6a3!3 3o(%!(%3 a&&!)4 )%9 ?%a7r%3
a)& $ro&783. Wh%) h!3 ha$$%)3' h% 6a)2 (a" a32 873o(%r3
o r%;%)%r a88o7) !)?or(a!o) 9h!8h 8a) 6% a 8a73% o? 9orr".
G. A88%33!6!*!"9 I" the Internet goes down in your area or the area o"
the 2anking o""ice, you will 2e una2le to access your accounts1 %his
includes 2eing una2le to withdraw money "rom A%-s or to use your
de2it card1
TIPS TO AAOID INTERNET BANKING FRAUDS
Th% #ar!o73 9a"3 o a#o!& !)%r6a)2!)4 ?ra7&3 ar%+;
,. Ph!3h!)4
A personCs personal details are o2tained 2y "raudsters posing
as 2ankers, who "loat a site similar to that o" the personCs
2ank1 %hey are asked to provide all personal in"ormation
a2out themselves and their account to the 2ank on the pretext
o" data2ase upgradation1 %he num2er and password are then
8A
used to carry out transactions on their 2ehal" without their
knowledge1
:. Ha82!)4
Here, personal data is stolen through hacking1 %he "raudster
needs to 2e an adept cy2er criminal who can steal in"ormation
stored or transacted in any computer1 ,ometimes, a spyware is
installed in computer to gain access to all "iles1
-. S%87r!)4 "o7r a88o7)
Here are some simple tips to prevent you "rom "alling into the
trap o" cy2er criminals1 .emem2er, a simple ignorance or
oversight can make a huge dent in your hard9earned savings1
Avoid online 2anking on unsecured wi"i systems and operate
only "rom ?Cs at home1 ever reveal password to anyone1 Do
not even write it on a piece o" paper on diary1 Rust memorise
it1 It should 2e alphanemeric and change it "re>uently1 ever
reply to >ueries "rom 2ank online a2out account or personal
details1 %he personal in"ormation should not 2e kept in a
pu2lic computer or in emails1
0. Ch%82 3!%3 Ur*
Always check the +.( o" your 2ankCs we2 site1 Fraudsters
can lure you to enter your user ID and password at a "ake
we2site that resem2les your 2ank1 I" you see anything other
than the 2ankCs genuine +.(, it has to 2e "ake1 ever enter
your user ID or password or such sensitive in"ormation
without ascertaining that you are on the right we2site1 Always
type the /e2 address o" your 2ank into the 2rowser address
space1 ever click on the link in the email1
:7
/. F7**;$roo? $a339or&
Change your online 2anking password at regular intervals1
Also, avoid easy9to9guess passwords, like "irst names,
2irthdays, kidCs or spouseCs name and telephone num2ers1 %ry
to have an alpha9numeric password, one that com2ines
alpha2ets and num2ers1 I" you have several 2ank accounts,
never use the same online 2anking password "or all1 ever
select the option on 2rowser that stores or retains user name
and password1 As it can easily 2e cracked 2y cy2er criminals1
Also, never paste your password, always type it in1 %his little
amount o" P"inger exerciseC will go a long way in sa"ety1
G. A*9a"3 8h%82 E*a3 *o44%&E
-ost 2anks have a Clast logged inC panel on their we2sites1 I"
your 2ank has it, check the panel whenever you log in1 I" you
notice irregularities 5like you are logging in a"ter two days,
2ut the panel says you logged in that morningS;, report the
matter immediately to your 2ank and change your password
right away1 Always log out when you exit the online 2anking
portal1 Close the 2rowser to ensure that your secure session is
terminated1 ever exit simply 2y closing the 2rowser1
1. K%%$ "o7r 3"3%( 7$ o &a%
.egularly check "or security updates "or your computer
operating system1 -ost security updates are aimed at reducing
risks to your computer, these may 2e data9related or
otherwise1 -ake sure that your operating system and 2rowser
have the latest security patches installed1 And, always install
these only "rom trusted we2sites1 Install a personal "irewall to
:1
prevent hackers "rom gaining unauthorised access to your
computer, especially i" you connect to the Internet through a
ca2le or a D,( modem1
H. P76*!8 a88%33 8a) 6% !)j7r!o73
DonCt leave the ?C unattended a"ter keying in in"ormation
while transacting on the we2site1 Avoid accessing your 2ank
online at cy2er ca"es or on a share or pu2lic computer1 Also,
avoid locations that o""er online connections through wireless
networks 5/i9Fi;, where privacy and security are minimal1
I. P76*!8 PC3
Also, using et 2anking services at cy2er ca"es leaves one
vulnera2le to data thieves1 Another modus operandi adopted
2y cheats these days is stealing data "rom pu2lic computers or
shared ?Cs1 %he "raud here takes advantage o" unsecured
cy2er ca"es1 A police o""ice says, I,ometimes, the ca"e owners
are hand9in9glove with the thugs1I
:6
COMPANY PROFILE
AB'+% %H& '.$AITA%I'J
%he Housing Development Finance Corporation (imited 5HDFC; was
amongst the "irst to receive an Fin principle3 approval "rom the .eserve Bank
o" India 5.BI; to set up a 2ank in the private sector, as part o" .BI3s
li2eralisation o" the Indian Banking Industry in 1AA:1 %he 2ank was
incorporated in August 1AA: in the name o" FHDFC Bank (imited3, with its
registered o""ice in -um2ai, India1 HDFC Bank commenced operations as a
,cheduled Commercial Bank in Ranuary 1AAB1
?.'-'%'.,
HDFC is IndiaCs premier housing "inance company and en#oys an
impecca2le track record in India as well as in international markets1 ,ince its
inception in 1AEE, the Corporation has maintained a consistent and healthy
growth in its operations to remain the market leader in mortgages1 Its
outstanding loan port"olio covers well over a million dwelling units1 HDFC
has developed signi"icant expertise in retail mortgage loans to di""erent
market segments and also has a large corporate client 2ase "or its housing
related credit "acilities1 /ith its experience in the "inancial markets, strong
market reputation, large shareholder 2ase and uni>ue consumer "ranchise,
HDFC was ideally positioned to promote a 2ank in the Indian environment1
:8
BRANCH NETWORK
Currently HDFC Bank has 1:1D 2ranches, 88@6 A%-s, in BB7 cities in
India, and all2ranches o" the 2ank are linked on an online real9time 2asis1
%he 2ank o""ers many innovative products * services to individuals,
corporate, trusts, governments, partnerships, "inancial institutions, mutual
"unds, insurance companies1 It is a path 2reaker in the Indian 2anking sector1
In 677E HDFC Bank ac>uired Centurion Bank o" ?un#a2 taking its total
2ranches to more than 1,7771 %hough, the o""icial license was given to
Centurion Bank o" ?un#a2 2ranches, to continue working as HDFC Bank
2ranches, on -ay 68, 677@1
BUSINESS FOCUS
HDFC BankCs (!33!o) is to 2e a /orld9Class Indian Bank1 %he BankCs aim
is to 2uild sound customer "ranchises across distinct 2usinesses so as to 2e
the pre"erred provider o" 2anking services in the segments that the 2ank
operates in and to achieve healthy growth in pro"ita2ility, consistent with the
2ankCs risk appetite1 %he 2ank is committed to maintain the highest level o"
ethical standards, pro"essional integrity and regulatory compliance1 HDFC
BankCs 2usiness philosophy is 2ased on "our core valuesJ 'perational
&xcellence, Customer Focus, ?roduct (eadership and ?eople1
::
HDFC BANK SERAICES
a. NET BANKING+ et Banking is HDFC BankCs Internet Banking service1
?roviding up9to9the9second account in"ormation, et Banking lets you
manage your account "rom the com"ort o" your mouse 9 anytime, anywhere1
6. HDFC Ba)2 N% Ba)2!)4 S%87r% A88%33
HDFC Bank has implemented a new security solution "or its customers K
,ecure Access 1As your security is our top priority, we have initiated the
,ecure Access solution to protect you "rom "raudsters and hackers 9 who are
looking to "ind a way to access your account1 Currently "ollowing
transactions are covered under ,ecure Access
M %rans"er "rom one HDFC Bank account to other HDFC Bank account
holders 5under distinct customer ID;
M %rans"er "rom HDFC Bank account to any other BankCs account 5also
known as .%$, * &F%;
M Hisa -oney %rans"er
M %hird ?arty Demand Dra"t through et Banking
8. Th!r& Par" Tra)3?%r
%hird9?arty %rans"er is a et Banking "eature "or which you will need your
uni>ue Customer ID and I?I 5password;1 (ogin to et Banking to con"irm
that your ID is active in our records1
FEATURES & BENEFITS
o need to individually log on to internet 2anking o" every account1 Rust log
on to 'ne Hiew and manage upto FIH& accounts in di""erent 2anks1
M .emem2er only '& password1
:B
M o charges whatsoever
HOW SECURE IS ONEAIEWF
'ne Hiew gives you the world class 2anking security and technology
sophistication youCd expect o" HDFC Bank, with "eatures such asJ
M .o2ust "irewall protection makes it nearly impossi2le to 2reak through1
M All in"ormation is transmitted using advanced 16@ 2it ,ecure ,ocket (ayer
5,,(; encryption technology1
M Automatic time9outs ensure that your account details are not viewed 2y
others1
M )ou can only view your accounts and cannot transact, so your money is
a2solutely sa"e1
MOBILE BANKING+ )our -o2ile is now your 2ankS ow access your
2ank account and conduct a host o" 2anking transactions through your
mo2ile, with our uni>ue -o2ile Banking service1 )ou can check your
account level in"ormation such as 2alance details, mini statement, and
che>ue status as well as carry out "inancial transactions such as Funds
%rans"er using HDFC Bank -o2ile Banking service1
FEATURES OF MOBILE BANKING
+sing our -o2ile Banking service, you can avail o" a host o" "eatures at
your "inger tips
M ?er"orm "unds trans"ers
M $et your 2alance details
M '2tain your last 8 transaction details
M .e>uest a che>ue 2ook
:D
M ,top a che>ue payment
M &n>uire che>ue status
M .e>uest an account statement
M $et Fixed Deposit details
M .e>uest "or I9?I generation
M .e>uest a che>ue 2ook
AUTOMATED TELLER MACHINE+ /ith wide spread network o" :,777
A%-s across India, en#oy the "ollowing 2ene"its at your convenience1
M :0;ho7r a88%33 o Ca3h 9 /ithdraw up to .s117, 777O9 per day on your
A%- Card and up to .s1 1B,777 on your De2it Card1
M P%r3o)a*!5%& Ca3h W!h&ra9a*3 K ,ave time on your cash withdrawal
transactions 2y pre9setting your pre"erred language O account O amount1
M A!%9 A88o7) Ba*a)8%3 & M!)!;3a%(%)3 9 $et details o" the last A
transactions on your account with the mini9statement, along with your
account 2alance1
M Cha)4% ATM PIN 9 Change your A%- ?I at any given point in time1
M Or&%r a Ch%B7% Boo2 C A88o7) Sa%(%)
M HDFC Ba)2 Cr%&! Car& Pa"(%) 9 -ake payment o" your HDFC Bank
Credit Card dues using the A%-1 %he primary account o" your De2it O A%-
card will 2e de2ited1
M D%$o3! Ca3h or Ch%B7%3 9 Deposit Cash or Che>ues into your account
without visiting the Branch1 Availa2le at on9Branch HDFC Bank A%-s
M Tra)3?%r F7)&3 6%9%%) a88o7)3 K %rans"er money 2etween your
accounts1 Both accounts must 2e linked to your A%- O De2it Card1
-aximum o" 1D AOCs 5,avings O Current; can 2e linked to a card1
:E
REFILL YOUR PREPAID MOBILE K .e"ill your prepaid mo2ile using
?repaid -o2ile .e"ill service instantly1 HDFC Bank o""ers K ?repaid -o2ile
.e"ill, which allows you to recharge your prepaid mo2ile phone anytime
"rom anywhere and pay directly "rom your Bank account1 Avoid hassles o"
withdrawing cash or searching "or a retailer "or 2uying the recharge card1
M )ou can avail o" this service in two convenient waysJ
?repaid -o2ile .e"ill on Internet
?repaid -o2ile .e"ill on A%-
PHONE BANKING+ )our phone is now your 2ank1 /hen you dial in to
?hone Banking, a voice prompt will guide you through the various
transactions1 )ou may also talk to a ?hone Banker, who will provide you
with the re>uired assistance1 Avail o" the "ollowing services via ?hone
BankingJ
a. Ch%82 "o7r a88o7) 6a*a)8% ; $et up9to9the9second details o" your
,avings or Current Accounts and your Fixed Deposits1 )ou can also get the
details o" the last B transactions on your account, or have a mini statement o"
last A transactions "axed across to you1
6. E)B7!r% o) h% 8h%B7% 3a73 ; )ou can use ?hone Banking to check on
the status o" che>ues issued or deposited "rom anywhere in India1
8. Or&%r a Ch%B7% Boo2 C A88o7) Sa%(%) ; Rust call ?hone Banking
and get your Che>ue Book or latest Account ,tatement delivered at your
doorstep1
&. So$ Pa"(%) ; ,top payment o" a single che>ue or a series o" che>ues,
6: hours a day1 Loa) R%*a%& B7%r!%3 ; $et details o" the outstanding loan
amount, en>uire a2out your loan account, re>uest "or an interest certi"icate
:@
and repayment schedule, etc1 Rust call ?hone Banking in your city and dial :
to speak to our ?hone Banker
%. O$%) a F!D%& &%$o3! or E)B7!r% o) "o7r F!D%& &%$o3!3 C TDSJK ;
%alk to our ?hone Banker to easily open a Fixed Deposit over the phone, 2y
simply authori0ing a trans"er o" "unds "rom your ,avings Account1
?. Tra)3?%r F7)&3 6%9%%) a88o7)3JK ; )ou can also trans"er money "rom
one o" your accounts to another1 Both accounts must 2e linked to your
Customer ID1 )ou can trans"er amounts upto .s 1 (ac in a single day1
4. Pa" "o7r 6!**3 ; ?ay your cellular, telephone, electricity and HDFC Bank
Credit Card 2ills through ?hone Banking using Bill ?ay, a comprehensive
2ill payments solution1
h. R%$or *o33 o? "o7r ATM C D%6! Car& C For%D P*73 Car& ; I" your
A%- O De2it O Forex plus Card are lost, call any ?hone Banking num2er to
deactivate your card5s;1
!. L%ar) a6o7 a** o7r oh%r $ro&783 ; $et details on HDFC Bank
products * services 2y talking to our ?hone Banker1
j. E)B7!r% a6o7 *a%3 I)%r%3 C ED8ha)4% ra%3 ; $et latest Interest rates
on Deposits and Foreign &xchange rates 2y talking to our ?hone Banker1
2. R%B7%3 a D%(a)& Dra? C Ma)a4%rE3 Ch%B7% KJJ ; Call ?hone
Banking and get a Demand Dra"t O -anagerCs Che>ue delivered to your
doorstep1
*. D%(a R%*a%& Q7%r!%3 ; $et the Account holding details, %ransaction
details, I,I um2er o" a scrip, ,tatus o" Depository ,lips, details o" Client
-aster list 5Dividend account, Charges De2it account, ?A etc1; * others1
Call ?hone Banking in your city * dial B to speak to our ?hone Banker1
:A
Products
P%r3o)a* 6a)2!)4
+nder ?ersonal Banking, HDFC o""ersJ
Accounts * Deposits
(oans
Cards
Demat
Investments
Insurance
Forex
?remium Banking
?rivate Banking
NRI 6a)2!)4
+nder .I Banking, HDFC o""ersJ
Accounts * Deposits
-oney %rans"er
Investments * Insurance
.esearch .eports
?ayment ,ervices
SME 6a)2!)4
+nder ,-& Banking, HDFC o""ersJ
U1EV
B7
Accounts * Deposits
Business Financing
%rade ,ervices
?ayments * Collections
Cards
Who*%3a*% 6a)2!)4
HDFC o""ers /holesale Banking "or Corporates and Financial Institutions *
%rusts1 %he Bank also provides services such as Investment Banking and
other services in the $overnment sector1
Services
Who*%3a*% 6a)2!)4 3%r#!8%3
HDFC Bank provides a range o" commercial and transactional 2anking
services, including working capital "inance, trade services, transactional
services, cash management, etc1 to large, small and mid9si0ed corporates and
agriculture92ased 2usinesses in India1 %he 2ank is also a leading provider o"
these services to its corporate customers, mutual "unds, stock exchange
mem2ers and 2anks1
R%a!* 6a)2!)4 3%r#!8%3
HDFC Bank was the "irst 2ank in India to launch an International De2it
Card in association with HI,A 5Hisa &lectron;1 %he 2ank also issues
the -asterCard -aestro de2it card1 %he Bank launched its credit
card 2usiness in late 67711 By the end o" Rune 6718, it had a credit card 2ase
o" B1A: million1 By -arch 6716, the 2ank had a total card 2ase 5de2it and
credit cards; o" over 1A1E million1 %he Bank is also one o" the leading
B1
players in the Imerchant ac>uiringI 2usiness with over 6:7,777 point9o"9sale
5?',; terminals "or de2it O credit cards acceptance at merchant
esta2lishments1 %he Bank is positioned in various net 2ased B6C
opportunities including a wide range o" Internet 2anking services "or Fixed
Deposits, (oans, Bill ?ayments, etc
B6
RESEARCH METHODOLOGY
I)ro&78!o)
%he two wheeler industry in India collectively produces 67 (akh vehicles a year1
,ome players have managed to cut through consumer resistance with innovation, pricing
and aggressive marketing1 %he competition level in the two wheeler industry is very high
now1 -any 2rands are "ighting in the market "or maximum share1 %hey have to 2ring out
a lot o" di""erentiation among them1 %he ma#or duty o" the marketer is to know the
reasons "or pre"erring particular motor 2ike 2y the consumers1
RESEARCH DESIGN
P7r$o3% o? L!%ra7r% R%#!%9
(iterature review is one o" the prime parts o" every pro#ect1 %he very 2asic purpose o" the
literature review is to gain insight on the theoretical 2ackground o" the research pro2lem1
It helps the researcher to gain strong theoretical 2asis o" the pro2lem under study and also
help to explore whether any one has done research on the related issue1 %hat3s why
literature review helps one to "ind out the path o" pro2lem solving1 In this regards the
very 2asic purpose o" the literature review in this dissertation is same as mentioned
M%ho&o*o4"
%he research will 2e done through survey method1 %he collection o" data will 2e done
through >uestionnaire, interview and related we2sites
%he sample si0e taken "or this research is 177 customers those who having HDFC Bank1
%he area o" this survey consist o" (ucknow city
%he collection o" data will 2e done with the help o" a structured >uestionnaire1 %he
designing o" >uestionnaire needs precision and classi"ication o" the su2#ect, so that the
respondents can easily understand the >uestion and can answer it sincerely and correctly1
So7r8%3 o? Daa
B8
Pr!(ar" &aa
?rimary data consists o" original in"ormation "or the speci"ic purpose at hand1 It is
"irst hand in"ormation "or the direct users o" respondents1 %he tools used to collect the
data may vary and can 2e collected through various methods like >uestionnaire, personal
interview
S%8o)&ar" &aa
,econdary data is the data which is already 2een collected and assem2led1 %his
data is availa2le with the companies or "irms and it can 2e collected "rom newspapers,
periodicals, maga0ines, we2sites etc1
Sa($*% D%3!4)
%he sample si0e taken "or this research is 177 customers having HDFC Bank1
Sa($*!)4 T%8h)!B7%
Convenient ,ampling techni>ue is used "or this pro#ect1
Daa Co**%8!o) Too*
Nuestionnaires as the primary "orm o" collecting data1
Sa!3!8a* %8h)!B7%3
11 Bar Diagrams
61 ?ie9Chart
Sa!3!8a* oo*3
,tatistical so"tware like -icroso"t &xcel
B:
NEED OF THE STUDY
M %o determining growth direction o" online 2anking service1
M ?romoting &92anking services in 2anking industry1
M Customer perception will 2e taken into consideration a2out the internet
2anking1
OBJECTIAES
%o study a2out the "actors that a""ects the customer perception
towards e2anking o" HDFC 2ank1
%o analy0e Customer Awareness towards HDFC BA!1
%o "ind out the ma#or pro2lems "aced 2y the customers while using e9
2anking services1
%o know a2out the current and "uture prospects o" &9Banking to the
customers1
%o get "eed 2ack on what consumer expects "rom HDFC BA!1
%o analy0e Customer Awareness towards electronic services o""ered
2y HDFC BA! and per"ormance o" the 2anks
Develop skills in report writing through data collection, data analysis,
data extraction, and presentation1
BB
DATA ANALYSIS AND ITS FINDINGS
ANALYSIS OF DATA COLLECTED
Cha)4!)4 %8h)o*o4" a)& C73o(%r A9ar%)%33 o9ar&3 HDFC BANK
!) L782)o9 C!"
Sa%(%) o? Pro6*%(
,tepping down o" HDFC Bank position "orm a market leader to an ordinary market
survivor has posed and alarming condition 2e"ore the company1 %he present study would
like to have an insight o" consumer3s perception a2out the criteria o" selecting the 2ikes1
&specially to "igure out whether it is 2rand driven or >uality driven
BD

CHAPTER L 0+ DATA ANALYSIS & INTERPETATION
InterpretationJ %he result shows that ma#ority o" respondents i1e1 EDG are
males who are using the &92anking services and 6:G are the "emale who are
using &92anking services1 Female are not using this service 2ecause they
have less knowledge a2out the internet and they trust "ace to "ace interaction
more1 ,o it shows that &92anking is more "amous among male1
BE
InterpretationJ %he result shows that ma#ority o" respondents i1e1 6EG "alls
under the category o" 61987 years and 68G "alls under 2elow 67years it
shows that &92anking is mainly "amous among youngsters as they are the
ma#or users o" &92anking and least comes under a2ove B7years1
B@
InterpretationJ %he result shows that ma#ority o" respondents that are using
&2anking are Businessman i1e1 86G they are using &92anking services
2ecause it results in time saving1 And 6EG respondents are working in
private sector and 6:G respondents are working in government
organi0ations and 1EG are others which include students and housewives
they are using &92anking 2ecause it saves time and students they have
complete knowledge o" internet1
BA
InterpretationJ %he result o" this study shows that 86G o" the respondents
who are using &92anking "all under the income category o" 17,77796B,777
and 87G "alls under the income category o" 6B,777 to B7,777 and 68G G
"alls under the income category o" more than B7,777 and 1BG G "alls under
the income category o" 2elow 17,7771
D7
N6; /hile opening up the account, were you aware o" &92anking services
provided 2y HDFC 2ankW
InterpretationJ According to this survey ma#ority o" respondents i1e1E8G
were aware a2out &92anking services provided 2y their 2ank and 6EG o"
respondents were not aware a2out the &92anking services provided 2y their
2ank at the time o" opening up o" their account 2ecause o" lack o" awareness
and some are using 2anking services "rom last so many years at that time
2ank was not o""ering &92anking service so they were not aware at that time
2ut now they are aware1
D1
N8; I" answer to >uestion no16 is )&,, which o" the "ollowing &92anking
services is you aware o"W
D6
InterpretationJ According to this study almost every customer is using more
one &2anking service and De2it Card is used 2y almost ABG o" respondents
and mo2ile 2anking is used 2ut @AG o" respondents and D1G respondents
are using phone 2anking and only 1G are using one line 2anking this shows
the trend that how customers are using &92anking and among all the &9
2anking products de2it cards are mostly used 2y respondents 2ecause they
are easy to use and do not re>uire technical or computer knowledge1
N:; Are you availing &92anking servicesW
D8
D:
ND; i" answer to >uestion no1: is yes, how "re>uently do you use each o" the
"ollowing servicesW
InterpretationJ %he results shows ma#ority o" the respondents use internet
2anking, as1 BB respondents are like to use internet 2anking 2ecause
according to them it3s easy to use and easily accessi2le1 %hey can use this
any time anywhere1 ,o it3s good "or them to use this "acility o" &9 2anking
they are satis"ied with this "acility o" & 2anking1
DB
InterpretationJ %he results shows ma#ority o" the respondents use mo2ile
2anking, as1 :B respondents are like to use mo2ile 2anking 2ecause
according to them it3s easy to use and easily accessi2le1 %hey can use this
any time anywhere1 ,o it3s good "or them to use this "acility o" &9 2anking
they are satis"ied with this "acility o" &2anking1 %hey also have the same
reasons 2ecause its saves their time period 2ut the usage o" mo2ile 2anking
is less as compare to internet 2anking1 Because in the time o" technology the
most respondents are like to use the "acility o" internet instead o" using any
other1
DD
InterpretationJ %he results shows ma#ority o" the respondents use phone
2anking, as1 :: respondents are like to use phone 2anking 2ecause according
to them it3s easy to use and easily accessi2le1 %hey can use this any time
anywhere1 ,o it3s good "or them to use this "acility o" &9 2anking they are
satis"ied with this "acility o" &92anking1 As phone 2anking is also used 2y
less people as compare to other respondents who are using internet 2anking
as phone 2anking is also same as mo2ile 2anking so the respondents are
mainly used this as mo2ile 2anking1
DE
InterpretationJ %he results shows ma#ority o" the respondents use one line
2anking, as1 81 respondents are like to use one line 2anking 2ut one line
2anking is used 2y very less respondents 2ecause they are not "ully aware
a2out this "acility provided 2y 2anks so the main "ocus is on internet
2anking, mo2ile 2anking, phone 2anking etc1 ,o they don3t have any
knowledge a2out the one line 2anking1
InterpretationJ %he results shows ma#ority o" the respondents use de2it card,
as1 B1respondents are like to use de2it card 2ecause according to them it3s
easy to use and easily accessi2le1 %hey can use this any time anywhere1 -ost
o" the respondents are used this "acility a"ter the internet 2anking 2ecause
it3s the main "acility which is used 2y the customers and they really like this
"acility1
D@
NE; %ick the "eature which you like while considering HDFC 2ankW
Interpretation net 2ankingJ As per the survey, 16 respondents liked the et
Banking services provided 2y HDFC 2ank1
DA
N@; /hich o" the "ollowing "actors in"luence you the most to use &92anking
servicesW
Interpretation o" All time availa2ilityJ %he result shows that according to
B7G respondents all time availa2ility strongly in"luence them to use &9
2anking and according to 6AG respondents all time availa2ility in"luence
E7
them more than average to use &92anking and according to EG respondents
all time availa2ility in"luence them less than average to use &92anking the
reason o" variation in views o" respondents is the 2ecause o" their
pre"erences and perception1
Interpretation o" &asy o" +seJ %he results shows that according to :BG
respondents ease o" use strongly in"luence them to use &92anking and
according to 6BG respondents ease o" use in"luence them more than average
to use &92anking and according to BG respondents ease o" use in"luence
them not at all to use &92anking1
E1
Interpretation o" earnessJ According to :1G respondents nearness strongly
in"luence them to use &92anking and according to 68G respondents nearness
in"luence them average to use &92anking and according to :G respondents
nearness in"luence them less than average to use &92anking1
Interpretation securityJ According to 8AG respondents security strongly
in"luence them to use &92anking and according to 68G respondents security
in"luence them more than average to use &92anking and according to 18G
respondents security in"luence them less than average to use &92anking1
E6
Interpretation Direct AccessJ %he result shows that according to :BG
respondents direct access strongly in"luence them to use &92anking and
according to 6@G respondents direct access in"luence them more than
average to use &92anking and according to EG respondents direct access
in"luence them less than average to use &92anking1
E8
Interpretation Friends and relativesJ %he result shows that according to :EG
respondents their "riendsOrelatives strongly in"luence them to use &92anking
and according to 6BG respondents their "riendsOrelatives in"luence them
more than average to use &92anking and according to AG respondents their
"riendsOrelatives in"luence them less than average to use &92anking1
E:
Interpretation status sym2olJ %he result shows that according to B6G
respondent3s status sym2ol strongly in"luence them to use &92anking
2ecause now a days a person who is using &92anking services is considered
as a high pro"ile person and according to 6@G respondents status sym2ol
in"luence them more than average to use &92anking services1
NA; %o what extent are you satis"ied with your Banks3 &92anking servicesW
EB
InterpretationJ %he most o" the customers are really liked the "acilities
provided 2y 2anks as they strongly agree that the "acilities are good "or them
so they like to avail the &92anking services provided 2y the di""erent 2anks
and the result shows that :@G respondents are highly satis"ied with the e9
2anking services provided 2y their 2ank and 6@G respondents are satis"ied
with the e92anking services provided 2y their 2ank and 1:G respondents are
dissatis"ied with the e92anking services provided 2y their 2ank1
HDFC
ED
InterpretationJ From this we can analysis that most o" the respondents that is
1A respondents are satis"ied with the services provided 2y the 2ank1 %hat
they like the 2anking
services provided 2y the 2y HDFC 2ank and the 2ank also easily satis"ied
their customers1
EE
N17; /hich o" the "ollowing 2ene"its accrue to you, while +sing e92anking
servicesW
InterpretationJ -ost o" the respondents think that the ma#or 2ene"it "rom &9
2anking services is time saving "acility1 Because the ma#or pro2lem which
the respondents "aced is time pro2lem so &92anking eases their lives and
save their time so they like this "acility 2ecause o" this "acility1
E@
HDFC
InterpretationJ /e can analysis that the customers o" HDFC really satis"ied
with the time saving "acility o" &92anking1 %hey thought that it3s a good "or
them to use the &2anking services 2ecause it3s save their time and they can
easily access the service1
EA
N11; !indly rate the "ollowing reasons enlisted "or not using the &92anking
servicesW
InterpretationJ From the non users, an attempt was made to elicit the reasons
"or its non usage1 As shown in the ta2le, satis"action with traditional 2anking
was considered as prime de9motivating "actor, "ollowed closely 2y the "ear
@7
o" insecurity, then Fhidden cost3 "actor, which suggested their resistance to
change, which to some extent can 2e countered 2y aggressive advertisement
and utili0ing other modes o" awareness dissemination as well1
@1
16;.ate the "ollowing statements with regards to potential pro2lems
identi"ied in &92anking servicesW
Factors Highly
considered
-a#or Average -inor Ignora2le
A %ime consuming 1@ 1: A 8B 88
B ,ecurity Issue @ 67 6A 87 66
C A%- out o" order A 1@ 1: 88 8B
D Internet
Connectivity Issue
1@ 6B 18 6A 6:
& ?assword
"orgotten
66 8B A 1@ 6B
F Card
misplacedO-isuse
6@ 1D 8B 61 A
$ Di""iculty in
Claiming False
8B 8B 61 1A @
InterpretationJ According to this result 86G respondent3s time as a minor
identi"ied potential pro2lems in &92anking services and 87G respondents
consider time as a ignora2le identi"ied potential pro2lems in &92anking
@6
services 2ut 1EG respondents highly consider time as a identi"ied potential
pro2lems in &92anking services1
InterpretationJ %he result shows 6@G respondents highly consider security
issue as in or identi"ied potential pro2lems in &92anking services and 1@G
respondents consider security issue as ma#or identi"ied potential pro2lems in
&92anking services
InterpretationJ %he result shows that 86G respondents consider A%- out o"
order as a ignora2le identi"ied potential pro2lems in &92anking services and
@8
87G respondents consider A%- out o" order as a minor identi"ied potential
pro2lems in &2anking services and @G respondents consider A%- out o"
order as a highly considered identi"ied potential pro2lems in &92anking
services1
InterpretationJ %he result shows that 6EG respondents consider internet
connectivity as minor identi"ied potential pro2lems in &92anking services
and 1EG respondents consider internet connectivity as highly considered
identi"ied potential pro2lems in &2anking service1
@:
InterpretationJ %he result shows that 86G respondents consider password
"orgotten as a ma#or identi"ied potential pro2lems in &92anking services and
@G respondents consider password "orgotten as an average identi"ied
potential pro2lems in &92anking services1
InterpretationJ %he result shows that 6EG respondents consider di""iculty in
claiming "alse statement as an average identi"ied potential pro2lems in &9
@B
2anking services and 1BG respondents consider di""iculty in claiming "alse
statement as a minor identi"ied potential pro2lems in &92anking services1
N18; I" you use, rate your online 2anking "acility on the "ollowing criteria
using a scale o" 1 to B 5where 1 is very dissatis"ied and B is very satis"ied;
@D
InterpretationJ From a2ove its clear that ma#ority o" our respondents were
satis"ied and very satis"ied with the >uality o" in"ormation provided at online
2anking1 %his result show that the customers are satis"ied with the
in"ormation >uality provided 2y the 2ank, >uality o" in"ormation play very
important role i" the customer understand what is provided then he can
demand it more otherwise not1

@E
InterpretationJ From a2ove its clear that ma#ority o" our respondents get
average and satis"ied with the >uality and >uantity o" content provided at
online 2anking1 Nuantity o" in"ormation also play vital role in online
2anking 2ecause the customer o" 2ank want simple in"ormation and as per
their re>uirement only then he get satis"ied1
@@
InterpretationJ From a2ove its clear that ma#ority o" our respondents were
very satis"ied and satis"ied with the security o" personal in"ormation
provided at online 2anking1 %his result shows that the 2ank customers
2elieve that their personal in"ormation is secure while using online 2anking
"acility provided 2y the 2anks1
@A
N1:; I" answer to >uestion no16 is ', even i" you are not aware a2out &
Banking services then would you like to have in"ormation a2out this or
would you like to get in"ormation "rom the 2ank itsel"W
InterpretationJ %he result shows B:G respondents will like to get
in"ormation "rom the 2ank itsel" and :DG respondents will not like to get
in"ormation "rom the 2ank itsel" as &92anking services is provided 2y every
2ank so ma#ority o" respondents wants to get in"ormation a2out &92anking1
A7
N1B; /ould you like to use e 2anking services a"ter $etting the re>uired
knowledge a2out the services '""ered 2y the HDFC 2anksW
InterpretationJ %he result shows that BAG respondents would like to use &
Banking services a"ter getting the re>uired knowledge a2out the services
o""ered 2ecause now a days &92anking services considered very important
and everyone use these services daily to do work easily and >uickly 2ut :1G
respondents would not like to use & Banking services a"ter getting the
re>uired knowledge a2out the services o""ered 2y the 2anks1
A1
CONCLUSION
HDFC BA!is one o" leading two wheeler producer in the world and a ma#or
player in the Indian -arket1 %hey were the producer o" largest selling 2anks o"
the world that is HDFC BA!,plendor it has its own importance still in the
market1 But "rom the past two or three years HDFC BA!su""ered a slight loss
in its market share and Ba#a# 2ecame a 2ig competitor to HDFC BA!1
Customer Awareness and changing technology towards HDFC BA! is very
good1 It has created a very good 2rand image "or it sel" 2y providing low
maintenance, "uel e""icient, sleek looking models along with e""icient a"ter sales
service1 It has attracted every class o" customers1
In today3s competitive 2usiness environment, it is only due to the positive
perception o" the consumer that the company is 2eing a2le to compete in the
market with its other competitors1
A6
RECOMMENDATONS AND
SUGGESTIONS
%he customers should 2e provided with enough in"ormation
regarding e""ective maintenance o" the 2ike so that the consumers get the
2est "rom the 2ike1
HDFC BA!has to identi"y those dealers who are "acing the
pro2lem with sales and take ade>uate measures to keep up the so "ar
created 2rand image1
HDFC BA!has o""ered #ust one model 5HDFC
BA!?(&A,+.&; "or women whereas its competitors are o""ering more
then two so they should concentrate on that aspect1
A8
LIMITATIONS OF THE STUDY
11 In this study it is not possi2le to collect the opinion o" all the customers owing to
personal constraints1 ,o the assumptions are drawn on the 2asis o" the in"ormation given
2y the respondents1
61 %he study needs to 2e completed within a speci"ied time o" one month and in certain
restricted areas1 ,o the "indings cannot 2e generali0ed "or the company as a whole1
81 %his study covers only a HDFC BA! sector1 ,o this study will not 2e applica2le "or
those areas1
A:
BIBLIOGRAPHY
BIB(I'$.A?H)
BooksJ
1; aresh !1 -alhotra 5677:; <-arketing .esearch=, B
th
edition, ?earson
?rentice Hall ?u2lications1
6; Cooper Donald .1 and ,chindler ?amela ,1 56778; <Business
.esearch -ethod=, @
th
&dition, %ata -c$raw Hill ?u2lications, ?age
um2erJ 18E 91D11
/e2sitesJ
httpJOO2anking9online9internat12logspot1comOsearchOla2elOBanking
httpJOOen1wikipedia1orgOwikiOonlineX2anking
httpJOOwww12anknetindia1comO2ankingOi2kg1htm
httpJOOwww1icici2ank1comO
httpJOOwww1hd"c2ank1com
AB
ANNEMURE
Nuestionnaire
D%ar R%3$o)&%)'
/e are conducting a research study on e92anking1 /e will appreciate your
cooperation in this regard 2y "illing up the >uestionnaire care"ully1 I assure
you that the in"ormation provided 2y you will 2e kept con"idential and will
2e used "or academic purpose only1
?lease put a tick 5X; in appropriate 2rackets1
ameJ XXXXXXXXXXXXXXXXXXXXXXXXXXXXX
$enderJ -ale Female
AgeJ Below 67 67987 819:7 :19B7 A2ove B7
'ccupationJ $overnment ?rivate Business
Housewi"e ,tudent 'ther
-onthly
IncomeJ Below 17,777 17,777 K 6B777 6B7779B7777 -ore
than B7777
Q:@ Wh!*% o$%)!)4 7$ h% a88o7)' 9%r% "o7 a9ar% o? E;6a)2!)4
3%r#!8%3 $ro#!&%& 6" HDFC 6a)2F
)es o
5I? No' a)39%r B7%3!o) )o. ,, &!r%8*";1
Q-@ !? a)39%r o B7%3!o) )o.: !3 YES' 9h!8h o? h% ?o**o9!)4 E;6a)2!)4
3%r#!8%3 !3 "o7 a9ar% o?F
Internet Banking -o2ile Banking ?hone
Bank
AD
'ne (ine Banking De2it Card
Q0@ Ar% "o7 a#a!*!)4 E;6a)2!)4 3%r#!8%3F
)es o
Q/@ Ho9 8o)#%)!%) "o7 ?!)& a88%33!)4 "o7r 6a)2 o)*!)%F
&asy ormal
Di""icult
QG@ !? a)39%r o B7%3!o) )o.0 !3 "%3' ho9 ?r%B7%)*" &o "o7 73% %a8h o?
h% ?o**o9!)4 3%r#!8%3F
Factors 'nce in
a day
'nce in
a week
'nce in
a
'nce in
a month
In"re>uently
A Internet
Banking
B -o2ile
Banking
C ?hone
Banking
D 'ne (ine
Banking
& De2it Card
Q1@ T!82 h% ?%a7r% 9h!8h "o7 *!2% 9h!*% 8o)3!&%r!)4 HDFC 6a)2F
Features HDFC
A et Banking
B Credit Card 'nline
D Instant Alerts
& -o2ile Banking
F A%-
$ ?hone 2anking
AE
H I -o2ile
I %H Banking
QH@ Wh!8h o? h% ?o**o9!)4 ?a8or3 !)?*7%)8% "o7 h% (o3 o 73% E;
6a)2!)4 3%r#!8%3F
Factors ,trongly -ore
than
Average (ess
than
ot at
all
A All time
availa2ility
B &ase o" use
C earness
D ,ecurity
& Direct access
F FriendsO
.elatives
$ ,tatus sym2ol
QI@ To 9ha %D%) ar% "o7 3a!3?!%& 9!h "o7r Ba)23N E;6a)2!)4
3%r#!8%3F
Highly ,atis"ied
,atis"ied eutral
Dissatis"ied Highly Dissatis"ied
Q,.@ Which of the following benefts accrue to you,
while Using e-banking services?
Time Saving Inexpensive
Easy Processing Easy Fund
Transfer
Any Other________________
A@
Q,,@ K!)&*" ra% h% ?o**o9!)4 r%a3o)3 %)*!3%& ?or )o 73!)4 3h% E;
6a)2!)4 3%r#!8%3F
Factors Hi
ghl
-ore
than
Average (ess
than
(east
importan
A o need5 ,atis"ied with
traditional 2anking;
B It seems like a
2otheration
C Insecurity
D o access to
internetOmo2ile
& (ack o" operational
knowledge F Hidden costs
Any other, please
speci"yXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Q,:@ Ra% h% ?o**o9!)4 3a%(%)3 9!h r%4ar&3 o $o%)!a* $ro6*%(3
!&%)!?!%& !) E;6a)2!)4 3%r#!8%3F
Factors Highly
considered
-a#or Average -inor Ignora2le
A %ime consuming
B ,ecurity Issue
C A%- out o" order
D Amount de2ited
2ut not withdrawn
& Internet
Connectivity Issue
F ?assword
"orgotten
$ Card
misplacedO-isuse
H Di""iculty in
Claiming False
AA
Q,-@ I? "o7 73%' ra% "o7r o)*!)% 6a)2!)4 ?a8!*!" o) h% ?o**o9!)4
8r!%r!a 73!)4 a 38a*% o? , o / >9h%r% , !3 #%r" &!33a!3?!%& a)& / !3 #%r"
3a!3?!%&@
Factors 1 6 8 : B
A Nuality o" in"ormation
B Nuality and Nuantity
o"
content
C ,ecurity o" personal
in"ormation
Q,0@ If answer to question no.2 is N, even if you are
not aware about ! "anking services then woul# you
like to have infor$ation about this or woul# you like
to get infor$ation fro$ the bank itself?
)&, '
%&'( Wo7*& "o7 *!2% o 73% E;Ba)2!)4 3%r#!8%3 a?%r 4%!)4 h%
r%B7!r%& 2)o9*%&4% a6o7 h% 3%r#!8%3 o??%r%& 6" h% 6a)23F
)&, '
177