A

Synopsis Report
On

Proposed Project Topic

Customer Satisfaction on Internet Banking in
State Bank of India
Indira Gandhi National Open
University Subject - M5-100-Finance

Name- Mrs. Abha Soni Instructor

Enrollment – 136451983 Dr. Archi Dubey

Study Center Number-1510

Pt. Ravishankar Shukla University Raipur
Indira Gandhi National Open University, New
Delhi
1. Introduction to Company

The chapter describes the Company profile of State Bank Of India which was taken

for the study of project.

State bank of India is the nation‟s largest and oldest bank. Tracing its roots back some

200 years to the British East India Company (and initially established as the Bank of

Calcutta in 1806), the bank operates more than 15,000 branches within India, where it

also owns majority stakes in six associate banks. State Bank of India (SBI) has more

than 80 offices in nearly 35 other countries, including multiple locations in the US,

Canada, and Nigeria. The bank has other units devoted to capital markets, fund

management, factoring and commercial services, credit cards, and brokerage services.

The Reserve Bank of India owns about 60% of State bank of India.

Some facts and figures

SBIShare
SBI ShareininDeposits
Deposits&&Advances
Advances

SBI
SBI
18%
18%
 SBI Share in Foreign Exchange

SBI Share in Foreign Exchange

SBI
35%
SBI
35%

SBI Share in Government Transactions

SBI Share in Government Transactions
(Receipts and payments on behalf of Government of
(Receipts and payments on behalf of Government of
India and other provincial Governments )
India and other provincial Governments )

SBI
SBI
60%
60%
 Key Dates:
1806: The Bank of Calcutta is established as the first Western-type bank.

1809: The bank receives a charter from the imperial government and changes its

name to Bank of Bengal.

1840: A sister bank, Bank of Bombay, is formed.

1843: Another sister bank is formed: Bank of Madras, which, together with Bank of

Bengal and Bank of Bombay become known as the presidency banks, which had the

right to issue currency in their regions.

1861: The Presidency Banks Act takes away currency issuing privileges but offers

incentives to begin rapid expansion, and the three banks open nearly 50 branches

among them by the mid-1870s.

1876: The creation of Central Treasuries ends the expansion phase of the presidency

banks.

1921: The presidency banks are merged to form a single entity, Imperial Bank of

India.

1955: The nationalization of Imperial Bank of India results in the formation of the

State Bank of India, which then becomes a primary factor behind the country's

industrial, agricultural, and rural development.

1969: The Indian government establishes a monopoly over the banking sector.

1972: SBI begins offering merchant banking services.

1986: SBI Capital Markets is created.

 1995: SBI Commercial and International Bank Ltd. are launched as part of SBI's

stepped-up international banking operations.

1998: SBI launches credit cards in partnership with GE Capital.

2002: SBI networks 3,000 branches in a massive technology implementation.

2004: A networking effort reaches 4,000 branches.

2. Brief Introduction to project

Graduated in BBA as the background, and as a student of Fourth Semester MBA with

specialization in Finance and Marketing, I was searching for a project area which

should go along with my career in Finance division of banking industry and utilizes

most of my Finance skills and knowledge. So it was narrowed down to the study of

Internet Banking of State Bank Of India.

Internet:-

There is a sea change in the media world. While most consumers see the news papers,

the same magazines and listen to the same radio programs, behind this bland public

exterior there is a seething world of innovation, acquisition, global partnership and

divorces, births and deaths… all of it most readily interpreted as the inevitable result of

the technological revolution that is in the process of merging telephones, computers,

televisions in to a single all singing, all dancing magic kit that will, very possible,

change all of our lives more than we can imagine some day
There are 2 ways you can respond to this 1 is to panic, which may mean simply

curling up in a corner and wishing that it would all go away. The other is to embrace

the new religion with messianic fervor and go out to proclaim the millennium. I

welcome you to the new emerging world of the Info-High-Way, destined to redefine

the world of communications:

What Is Internet Banking

Internet Banking System is a system that has been developed in order to help clients

with the daily day-to-day transactions. Internet banking systems means that clients

can now do banking at the leisure of their homes.

Also known as online banking, the system allows both transactional and non-

transactional features.

Online banking or internet banking allows customers to conduct financial transactions

on a secure website operated by the retail or virtual bank

History

The term online banking was first started in 80‟s. The term online became popular in

the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to

access the banking system using a phone line. „Home banking‟ can also refer to the

use of a numeric keypad to send tones down a phone line with instructions to the

bank. Online services started in New York in 1981 when four of the city‟s major

banks (Citibank, Chase Manhattan, Che mical and Manufacturers Hanover)

offered home banking services using the videotext system. Because of the

commercial failure of videotex these banking services never became popular except
in France where the use of videotex (Minitel) was subsidized by the telecom provider

and the UK, where the Prestel system was used.

The UK‟s first home online banking services was set up by the Nottingham Building

Society (NBS) in 1983 .The system used was based on the UK's Prestel system and

used a computer, such as the BBC Micro, or keyboard (Tandata Td1400) connected to

the telephone system and television set. The system (known as 'Home link') allowed

on-line viewing of statements, bank transfers and bill payments. In order to make

bank transfers and bill payments, a written instruction giving details of the intended

recipient had to be sent to the NBS who set the details up on the Home link system.

Typical recipients were gas, electricity and telephone companies and accounts with

other banks. Details of payments to be made were input into the NBS system by the

account holder via Prestel. A cheque was then sent by NBS to the payee and an

advice giving details of the payment was sent to the account holder. BACS was later

used to transfer the payment directly.

Stanford Federal Credit Union was the first financial institution to offer online internet

banking services to all of its members in Oct, 1994. Later on it was adopted by

worldwide banks
3. Design of Solution

CBS - Core Banking System Components

CBS - Core Banking

System
Branche
s Components Datacenter

Application Developers

Desktops,
Branch Core-Banking
Servers Application

WAN, OS, Database

Interne
Alternative
t Internet-Banking
Channels

ATM

Branch User/Adm System Adm inistrators

ins Network Adm
inistrators

ELITEX-2008 8
Chapter deals with the information related to various services an products of SBI internet

banking

Online SBI (www.onlinesbi.com)

State Bank of India is India‟s largest bank with a branch network of over 11000

branches and 6 associate banks located even in the remotest parts of India. State

Bank of India (SBI) offers a wide range of banking products and services to corporate

and retail customers.

OnlineSBI is the Internet banking portal for State Bank of India. The portal provides

anywhere, anytime, online access to accounts for State Bank‟s Retail and Corporate

customers. The application is developed using the latest cutting edge technology and

tools. The infrastructure supports unified, secure access to banking services for

accounts in over 11,000 branches across India.

RETAIL BANKING

The Retail banking application is an integration of several functional areas, and enables

customers to:

 Issue Demand Drafts online

 Transfer funds to own and third party accounts

 Credit beneficiary accounts using the VISA Money Transfer,

RTGS/NEFT feature
  Generate account statements

 Setup Standing Instructions

 Configure profile settings

 Use eTax for online tax payment

 Use ePay for automatic bill payments

 Interface with merchants for railway and airline reservations

 Avail DEMAT and IPO services

CORPORATE BANKING

The OnlineSBI corporate banking application provides features to administer and manage

corporate accounts online. The corporate module provides roles such as

Regulator, Admin, Uploader, Transaction Maker, Authorizer, and Auditor. These

roles have access to the following functions:

 Manage users, define rights and transaction rules on corporate accounts

 Access accounts in several branches with a single sign-on mechanism

 Upload files to make bulk transactions to third parties, supplier, vendor

and tax collection authorities.

 Use online transactional features such as fund transfer to own accounts,

third party payments, and draft issues

 Make bill payments over the Internet.

 Authorize, modify, reschedule and cancel transactions, based on

rights assigned to the user

 Generate account statement

 Enquire on transaction details or current balance

Value added services

 Tax payments to central and state governments through site to site integration.

 Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)

 Direct Debit Facility

 E Collection Facilities for:

 Core Banking Transactions

  Internet Bank transactions for incoming RTGS/NEFT Transactions

 Internet banking transactions for SBI and associate banks

 Debit facility where suppliers can directly debit their customer‟s

account through internet banking

4.Methodology planning of work

Objectives

The main objectives of the study are:

 To understand the concept of Internet banking and importance, to bank

as well as customers.

 To get aware of various aspects of net banking

 To build up SWOC analysis of Internet banking of SBI

 To build up various solutions for drawbacks in net banking

 Scope of study

The study is made taking consideration of whole State Bank of India. With reference

to experience availed at Amravati camp branch.

Need of the Study

This study is needed to find out the working of Internet Banking of SBI and its

importance to customer as well as to bank.

Data Collection

The data is to be collected from Personal Development Manager of SBI, and by the

official website of State Bank Of India and Reserve Bank of India.

The project is divided into various chapters dealing with various issues in the project.

There are in total seven chapters.

Future scope

The study of this topic will help to get the knowledge about process of internet

banking and usefulness to banking industry. As the study contains the 360 degree

information regarding SBI and its internet banking, Hence the study will lead to new

ways to tackle the problems and the SWOT of SBI in respect of internet banking.

This was all about how the project will go ahead and the findings from it. The next

chapter deals with the Company Profiles

 5.Facilities provide for the proposed

 E-Ticket ing

 SBI E-Tax

 Bill Payment

 RTGS/NEFT

 E-Payment

 Fund Transfer

 Third Party Transfer

 Demand Draft

 Cheque Book Request

 Account Opening Request

 Account Statement

 Transact ion Enquiry

 Demat Account Statement

 Donation
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