DHARANIDHAR UNIVERSITY,

KEONJHAR

Project report on
A STUDY ON CUSTOMER’S PERCEPTION TOWARDS DIGITAL
BANKING SYSTEM IN INDIAN BANKING SECTOR

Submitted in the fulfilment of the degree of Bachelor of Commerce (B.com)

Session- 2022-2023

UNDER MSCBD UNIVERSITY, BARIPADA

Guided by: Dr. Nabaghan Mallik (Asst. Prof. in Commerce)
Presented by: Mohammad Azharuddin
+3 Final Year commerce
College Roll No: BC21- 129
University Roll No: 3121D057
Registration No: 19164/21
Signature: …………………. Signature: ………………………
Internal Examiner: …………………. External Examiner: ………………
 CERTIFICATE

This is to certify that the project report titled “A study on

customer’s perception towards digital banking system in
Indian banking sector” is a bona fide work of Mohammad
Azharuddin undertaken for the partial fulfilment of Bachelor
of Commerce (B.com) of Dharanidhar University, KEONJHAR
in year 2023-24 under my guidance. This project work is
original and has not been submitted earlier for the award of
any degree or diploma of any other University or institution.

Signature of the guide

Dr. Nabaghan Mallik

Assistant Professor
Department of Commerce
D.D. University, keonjhar
 ACKNOWLEDGEMENT

In the accomplishment of project successfully, many people

have best owned upon me their blessings and the heart
pledged support, this time I am utilizing to think all the people
who have been concerned with this project.

Primarily, I would thank God for being able to complete this

project with success. Then I would like to thank our Registrar
Prof. Narendra Kumar Sahoo, my guide Dr. Nabaghan Mallik
Assistant Professor in commerce and H.O.D of commerce Dr.
Shashikanta Jena and other faculties of Department of
Commerce, whose valuable guidance has been the ones that
helped me to patch this project and make it full proof success.
His suggestion and his instructions have served as the major
contributor towards the completion of the project.

Then I would like to think my parents and friends who have

helped me with their valuable suggestion and guidance has
been very helpful in various phase of the completion of project

Place: keonjhar Name: Mohammad Azharuddin

Date: Signature:
 DECLARATION

I am Mohammad Azharuddin son of Mohammad Raphik certify

that the project report entitled on “A study on customer’s perception
towards digital banking system in Indian banking sector” is prepared
by me and my personal and authentic work under the guidance of Dr
Nabaghan Mallick, Assistant Professor, Department of Commerce.

Date: Signature of the Student

Place: Keonjhar
Name: Mohammad Azharuddin
B. Com (3rd Year)
Roll No: BC21- 129
 ABSTRACT
The aim of this study is to assess and understand the intent of using
Internet banking, the motives for choosing internet banking,
consumer satisfaction towards E-Banking services, and to identify
customer’s problem. The date were collected via questionnaire and
customers who used internet banking facilities at the Bank using a
formal questionnaire and descriptively evaluated using percentages.
According to the finding, six services quality dimensions, namely
dependability, performance, responsiveness, fulfilment,
security/privacy, and website design, have a substantive relationship
with customer satisfaction and Internet Banking. The result of the
study have shown that touch and reliability are the must affected
variables that increase the satisfaction level of internet banking
customers. The level of satisfaction of internet banking customers in
Bhopal city has a significant relationship with convenience as an
indicator of E- Banking services. Security measurement is the most
important factor that affects the level of customers satisfaction with
these services.

Key words: Digital Banking, Internet Banking, The level of

Convenience
 TABLE OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO.

Chapter 1 INTRODUCTION 1-7

Chapter 2 LITRATURE REVIEW 8 - 15

Chapter 3 RESEARCH 16 - 20
METHODOLOGY

Chapter 4 DATA ANALYSIS & 21 - 37

INTERPRETATION

Chapter 5 RESULT, DISCUSSION, 38 - 41

SUGGESTION
&CONCLUSION
BIBLIOGRAPHY 42 - 43

ANNEXURE 44 - 47
Figure Title Page No.
No.
4.1 Gender of the Respondents 22

4.2 Age of the Respondents 23

4.3 Employment status of the 24

Respondents
4.4 Annual Income Of the 25
Respondents
4.5 Place of Residence 26

4.6 Type of Bank Account 27

4.7 E- Banking Services used by the 28

Respondents
4.8 Preference of the E-Banking 29
Services
4.9 Risk related to the E- Banking 30

4.10 Usage of E- Banking services 31

4.11 Convenience Measurement 32

4.12 Privacy Measurement 33 - 34

4.13 Cost Measurement 35

 CHAPTER: 1
INTRODUCTION

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1.1 INTRODUCTION
When every day is a race against time in our hectic lives, we look for
ways to save time as much as we can. E-Banking is one of the
technology advancements that help consumers to perform their
financial transactions on a secured platform from a retail or automated
bank, credit union, or any financial institution. E-Banking, also known
as electronic banking, is the digital distribution of new banking
services and products to customers directly through electronic,
interactive contact networks. When opposed to conventional banking,
it offers many advantages and strengths to customers. E-Banking is a
simple and convenient way to obtain 24-hour access to your bank
using a smartphone. E-Banking makes use of the internet as a
distribution mechanism for banking transfers. E-Banking services have
made bank transfers a thing of the past when it comes to everyday
errands. Since online banking is one of the most popular services
provided by banks, it is also a very stable platform. Encryption systems
are often used by banks to ensure that all customer information is
secure and that no data breaches occur. It protects you from online
fraud and account manipulation in the end.

Accessibility is not a problem.

You should rely on online banking even though it's the last day of
your bill payment and you're minutes away from being charged a
penalty. Online purchases can be made at any time of day from the
privacy of your own home. Not just that, but instead of having to be
physically there for a large number of transfers, you can safely move
funds at any moment and get them completed in a matter of
seconds.

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There are no hidden costs. Given the ease, there are no undisclosed
fees when using the internet to do business. You are only paying a
small processing fee, and the rest is handled by your bank. Assured
Convenience, while one of the many advantages of online banking is
the ease with which it can be accessed, it also makes banking very
simple. There is no longer the reason to stand in long lines at the bank.
Transfers and withdrawals have since become smoother thanks to
most banks' mobile banking options. If you're caught in a traffic jam or
at work, you can complete transactions on the go. This makes it much
easier to check your balance before making cashless payments, saving
you from humiliation if your account doesn't have enough money to
support your whole shopping list. Keep a close watch on the finances.

Finally, having E-Banking and a decent budgeting application at your

fingertips makes budgeting and handling your account even easier.
When making payments or calculating your monthly savings and
expenditures, you can keep track of real-time expenses. Online
banking allows consumers to access general information and accounts
of bank products and services through PC or other intelligent systems,
which has a significant impact on the growth of more convenient
payment mechanisms and user-friendly banking services in the
banking industry. With many of these advantages and even more to
come, it's impossible to justify not using online banking for faster
banking transfers. (yes bank, n.d.)

Customers who use E-Banking are more successful, loyal, and likely to
recommend their bank to friends and family than conventional
banking customers. Online consumers also have better balances, need
fewer customer service, and have lower retention rates than offline
customers. Customers who use online bill pay and e-bill systems are
satisfied with their banks, which turns into deeper relationships.

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The Indian Banking Sector and Information Technology
After independence, the Indian banking system has progressed
from nationalisation to liberalisation. It has seen the transformation of
a sluggish corporate institution into a highly proactive and competitive
organisation. This transition has occurred. largely as a result of
liberalisation and economic reforms that allowed banks to rather than
generating sales from traditional sources, investigate potential market
prospects. Borrowing and lending streams This financial reform, which
began in the early 1970s introduced a radically new operating
environment for banks. The banks were also selling their products and
services through a variety of creative and appealing technology-based
multichannel. The method began in the 1970s with the introduction of
computers as ledger posting machines. The use of technology has
been implemented in Banking operations have a wide range of back-
office and customer facing tasks. Early in the 1980s, The Reserve Bank
of India established two committees to speed up the modernization of
the banking system. operations in the financial industry A high level
committee were formed under the auspices of the Under the
chairmanship of Dr C. Rangarajan, a phased strategy for
computerization and automation was created. In the banking industry,
there has been a lot of automation. Banks are now using a range of
innovative and attractive technology-based multichannel to market
their goods and services. With the invention of computers as ledger
posting machines in the 1970s, the system was born. Banking
operations use automation for a variety of back-office and customer-
facing activities. The Reserve Bank of India formed two committees to
speed up the restructuring of the banking system in the early 1980s.
economic processes A high-level committee was organised under the
auspices of the and a phased plan for computerization and automation
was established under the chairmanship of Dr C. Rangarajan. Banks
that once relied solely on the branch to provide services have now
begun to sell their products and services across several creative and

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technology-based channels. Internet Banking, Automated Teller
Machines, and other platforms are examples of these. ‘ATMs,' 'Mobile
Banking,' 'Phone Banking,' 'TV Banking,' and so on. Any of these are E-
banking or online-banking is the domain of new delivery networks. In
the type of digital banking, electronic banking has been around for a
long time. Telephone transfers and automated teller machines (ATMs).
It has been more common in recent years. The internet has changed
everything – it's a digital distribution system that had enabled banking
simpler for its transactions.

1.2 ROLE OF E-BANKING IN INDIAN BANKING SECTOR

E-Banking is a relatively new phenomenon in India. The
conventional banking paradigm has been through branch banking.
Non-branch banking services were only introduced in the early 1990s.
The old manual systems that Indian banking relied on for centuries
seem to have no place today. ICICI Bank is responsible for the
introduction of internet banking in India. In 1999, Citibank and HDFC
Bank launched internet banking services. The Government of India
and the Reserve Bank of India have taken many steps to encourage the
growth of E-Banking in India. With effect from October 17, 2000, the
Government of India passed the IT Act, 2000, which offered legal
recognition.
To deal with the pressures of the rivalry, Indian commercial banks have
implemented several initiatives, one of which is E-Banking. The
competition has been internal disagreements for public sector banks,
as the newly formed private sector and foreign banks have emerged.
E-Banking provides three broad services: Convenience- Complete your
banking at your leisure in the privacy of your own house, there are no
lines at an online bank,24x7 service- Bank online transactions are
available 24 hours a day, 7 days a week, 52 weeks a year. (LAL* &
SALUJA**, 2012)
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In simpler terms, E-Banking is a banking arrangement that allows
customers to conduct multiple transactions over the internet that are
end-to-end encrypted, i.e., totally safe and stable. Paperless/cashless
transfers are encouraged by E-Banking. It also comes with a set of
protections, obligations, and payments. E-Banking programmes
include the following:
1.Internet Banking: A banking service offered to customers that allows
them to conduct a variety of monetary and non-monetary transactions
through the internet, via the bank's application or website.
2.Mobile Banking: Almost all banks have created mobile apps that
allow users to make transactions at the press of a button. This requires
four things: a tablet, internet access, a smartphone app, and mobile
banking service available in your bank account.
3.ATM: Automated Teller Machine, also known as ATM, is one of the
most popular and early services offered by E-Banking. It is more than
just a cash withdrawal machine; it also helps you to check your account
balance, pass funds, deposit funds, update your telephone number,
and change your Debit Card PIN, or Personal Identification Number.
4.Debit Card: Debit cards are used in our daily lives to make a variety
of transactions. Debit cards are attached to the customer's bank
account, meaning the customer simply has to swipe the card to make
payments at POS outlets, internet shopping, and ATM withdrawals. In
this manner, the balance is automatically withdrawn from the user's
account.
5.Credit Card: A credit card, like a debit card, is a payment card that
banks give to consumers upon their request after reviewing their
credit score and records. It allows the cardholder to borrow and pay
for funds up to the pre-approved cap. The card's cap is set by the banks
that issue the card. For the use of a credit card, the cardholder decides
to refund the balance within a defined period, subject to such
penalties.
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 6.Electronic Fund Transfer (EFT): This is the term used when money
is transferred electronically from one bank to another. Which includes
direct debit, direct deposits, wire transfers, NEFT, RTGS, IMPS, and
other methods.
7.Point of Sale (POS): A point of sale system refers to a point, in terms
of date, time, and position (retail outlet), where the customer makes
a payment for the product made or services offered, using a plastic
card (business jargons, 2021).

1.3 Justification of the topic

The study has been conducted to thoroughly analyse and investigate
the degree of satisfaction towards E-Banking services. This study aim
is to assess and understand the intent of using internet banking, the
motives for choosing internet banking, consumer satisfaction towards
E-Banking services, and to identify customer's problem. This study
helps in knowing how far the modern E-Banking services are used by
the customers. The secondary data for this study is collected using a
well-structured questionnaire.

1.4 CHAPTERISATION
This research work is organised in 5 chapter for easy understanding as
follows-
CHAPTER 1: Introduction
CHAPTER 2: Review of literature
CHAPTER 3: Research methodology
CHAPTER 4: Data analysis & Interpretation
CHAPTER 5: Result, Suggestion & Conclusion

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 CHAPTER: 2
LITRATURE REVIEW

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2.1 INTERNATIONAL REVIWES
(S. Fatemeh Sakhaei, 2014) In his research on the effect of service
quality factors of Internet Banking on customer satisfaction in Iran, has
evaluated the relationship between service quality and customer
satisfaction and examines the effects of service quality on customer
satisfaction by the use of Internet Banking services. According to the
findings, six service quality dimensions, namely dependability,
performance, responsiveness, fulfilment, security/privacy, and
website design, have a substantive relationship with customer
satisfaction and Internet Banking.
(A.P.P. Perera, 2018) the paper talks about how internet banking
services impact customer satisfaction, the information was gathered
from 285 customers who used internet banking facilities at the Bank
of Ceylon's Panadura Branch using a formal questionnaire and face-to
face interviews. The study tested seven theories about the relationship
between seven aspects of internet banking and customer satisfaction.
According to the findings, performance, device availability, and
rewards have a major and positive impact on customer satisfaction,
while fulfilment, confidentiality, and responsiveness have no
significant impact on the degree of customer satisfaction. The results
have shown that touch and reliability are the most affected variables
that increase the satisfaction level of internet banking customers. The
methodological evidence aided in understanding the relative
effectiveness of internet banking service values, which would aid
policymakers in developing quality services.
dimensions designed to boost customer satisfaction.
(Adewuyi, 2014) Have conducted a study on electronic banking
product and service in Nigeria. Their results revealed that all banks
provide at least one form of electronic services, such as E-Banking,
even though many E-Banking schemes have been adopted and

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embraced by customers, e-payment is the most commonly used E-
Banking solution.
(Hindu J. Amin P. E., 2018) According to another researcher, customer
satisfaction is the source of service efficiency. Efficiency and
satisfaction are not the same things. There is no agreement about how
to define service efficiency and customer satisfaction. Any
organisation expects service efficiency to increase customer
satisfaction.
(Jane M. Kolodinsky, 2004) This study explores the factors that
influence the adoption or plan to adopt three E-Banking technologies,
as well as changes in these factors over time. Using a data collection
commissioned by the Federal Reserve Board, the paper discovers that
relative benefit, complexity/simplicity, compatibility, observability, risk
tolerance, and product participation are all correlated with adoption.
Adoption is affected by factors such as income, assets, education,
gender, marital status, and age. Adoption has developed over time,
but the influence of other factors on adoption have not. The
consequences for the banking sector as well as public policy are
discussed.
(Emad Hashiem Abualsauod, 2020) This research aims to create a
conceptual context for OB (online banking) by understanding the
interactions of stakeholders in the banking industry, as well as to
identify OB quality gaps based on relevant literature. There were five
online banking quality gaps found, as well as three phases of customer
engagement with online banking systems. As a result, the ultimate
goal of this study is to assess the impact of such quality differences on
customers' willingness to use OB in Saudi Arabia, as well as customer
satisfaction with OB. Gaps in technology and human interaction were
discovered to have a huge impact on customers' ability to use OB.
(Khan, 2017) According to the current study, E-Banking has radically
changed the banking industry by offering enormous opportunities to

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its customers. It is a borderless arrangement that gives its customers
to bank whenever, wherever, and anywhere they want. On the other
hand, it raises the risk of using conventional banking. Because of its
many benefits, online banking transactions are now approved by the
overwhelming majority of customers. There is a strong connection
between E-Banking and customer satisfaction. Customers are
committed to using the service, and banks can maintain the majority
of their users' attention.
(Khrais, 2013) This study aims to look into the important determinants
that make it easier for customers to use E-Banking services. The survey
method is used in this study to investigate the relationship between
independent and dependent variables. Data was collected using
questionnaires that were followed by a letter explaining the intent of
the study and assuring respondents of the confidentiality of their
responses; the participants were online banking users in Poland. To
test hypotheses and accomplish goals, statistical instruments were
used; hence, the analysis is descriptive, and quantitative methods
were used.
(Hua,2009) The study deals with the acceptance of online banking in
China The study aims is to look at users' perceptions of online banking,
the ease of use of the platform, and the privacy policies offered by the
online banking website. The perceived ease of use and privacy policies,
as a result, have a huge effect on consumer adoption of online
banking. This research also considers the relative importance of
perceived ease of use, privacy, and protection. Privacy and protection
are more important than perceived ease of use. The most important
factor affecting user adoption is security. In the end, there is a
summary of the consequences of these findings as well as their
limitations.
(Jamil Hammoud, 2018) This study aimed to investigate the
relationship between the factors of E-Banking service quality and
customer satisfaction to decide which component has the greatest
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potential impact on customer satisfaction. Responses were extracted
by the use of a survey instrument, which was distributed to bank
clients in the Lebanese banking sector. The data was statistically
analysed using SPSS. According to the results, dependability,
performance, and ease of use; responsiveness and communication;
and protection and privacy all have a major effect on consumer
satisfaction, with dependability having the greatest impact.

2.1 NATIONAL REVIEWS

(Dr. S. Sangeetha, 2020) studies the customer’s satisfaction towards E-
Banking Services and its impacts on banks. Electronic Banking
technology is useful to customers as well as banks and other
organizations. and there is no significant difference between personal
factors like age, profession, annual income and category of the bank
chosen and the satisfaction level of the customers.
(Dr. Jagdeep Singh, 2018) investigates the effect of E-Banking on
service quality Likert scales with five points have been established. To
accomplish this task, the Service quality model was extended to 42
statements. A total of 42 statements were included. Respondents
were requested to score these products on a scale of 1 to 5 based on
their interactions with E-Banking services. The effect of E-banking on
service quality was examined using nine factors: connectivity,
tangibility, understanding, credibility, stability, access, responsiveness,
competence, and reliability, all of which have a major impact on
service quality. According to the findings of the study, there is a major
difference between the various factors influencing the use of E-
banking. These considerations should be addressed by E-Banking
service providers to offer high-quality banking services to their
customers.
(Rajput, 2015) explores customer satisfaction of online banking
systems and its consequences for banks. This paper aim is to assess
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consumer perceptions towards E-Banking facilities. The data was
collected via questionnaire and descriptively evaluated using
percentages and ANOVA. Customers were discovered to be using E-
Banking systems such as ATMs, home banking, including the use of
payment cards, it can be inferred that about 45 per cent of people have
a favourable view of and are satisfied with E-Banking. ATM
withdrawals, bill payments, and bank statement retrieval are all
common E-Banking services.
(Vikas Chauhan and Vipin Choudhary, 2015) discusses the problems
and opportunities associated with internet banking in the Indian
competition, the analysis concludes that the concept of online banking
is increasingly gaining momentum. Gaining recognition in the Indian
context, and efforts are being made by government departments to
increase its popularity among customers. some of the challenges such
as Security risks, Privacy concerns, distrust, and a general lack of
knowledge among consumers regarding E-Banking is serving as a
bridge in the adoption of E-Banking services. Considering the
difficulties, and the risks associated with E-Banking, the government
of India, with different government departments is working to make E-
Banking even more secure, safe, and dependable. Beginning with the
fact that the way banks used to work has changed as a result of the
incorporation of the internet into financial institutions. The launch of
the internet in Banks have been modernised as a result of the banking
organisation. Implementation Online banking has helped both banks
and customers.
(D, A Study of Consumer Awareness towards e-Banking, 2016) The
study deals with the consumer's behaviour toward the E-Banking
system According to the findings of the survey, consumers have a
positive outlook. The biggest barrier to using the E-Banking facility is a
lack of information about banking operations. Respondents also agree
that E-Banking systems are too difficult to use, and a few respondents
believe that E-Banking is dangerous. This study is based on primary

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data for analysis. According to the findings of the study, the majority
of bank customers are aware of all banking facilities. Banks must also
take the appropriate steps to inform customers about emerging
technologies and other services provided by the banks.
(Kavitha.S, 2016) According to the research, the banking sector is the
dominant sector, which is regarded as the gateway to savings for the
general public and the government, which is a source of GDP. The
research is based on secondary data. The study's tools included trend
and compound Annual Growth Rate (AGR). According to the analysis,
E-Banking is both a strength and weakness and the banking sector will
be able to solve all of the obstacles in the coming years.
(Raghavendra.B, 2016) The study focuses on selected public sector
banks and consumer opinion from a single region with a similar social
background resulting in prompt response, confidentiality, web design,
and ease of use of factors affecting customer satisfaction. Customer
satisfaction is influenced by the customer's gender, age, education,
and income level. The scope of the analysis is limited to investigating
customer satisfaction with internet banking services offered by banks
and. Furthermore, the study focuses on mobile banking, bank support
services, and private banks for exploration. Components that core
banking solutions allowed Indian banks to provide excellent customer
service. Internet developments are paving the way for more efficient
and innovative banking. ATMs have been widely adopted to avoid
customer queues, to bank more easily, and to make use of information
authentication. Nowadays, public sector banks are well-equipped with
tools and technology to meet the needs of their customers. ANOVA,
coefficient, and variance are the methods used in this analysis.
(Samsunisa. A, 2016) the study aims to identify the factors that affect
customer's adoption of Internet banking services in Chennai, as well
as to investigate the relationship between Internet banking service
adoption and demographic factors. The primary data collection
instrument was a Questionnaire designed on a 5-point Likert scale to
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collect quantitative data. The findings indicate that demographic
factors such as education, place of residence, and income all play a
positive role in the adoption of banking technology. According to the
study, with the change in the banking industry, consumers are ready
to embrace Internet Banking because it offers certain values and
benefits while saving time and effort.
(Dr. Geeta Sharma, 2014) It has been analysed that internet banking
service quality is a key issue to maintain customer satisfaction.
Website ease of use, comfort, accessibility, confidence and
responsiveness is the major integral determinants of internet banking
services quality. An understanding of the factors identified in this study
allows bank managers and policymakers to direct efforts and resources
most effectively and efficiently to increase bank business in the long
run. The research seeks to make an original contribution to knowledge
by investigating the impact of internet banking service quality on
customer satisfaction in the Indore district of Madhya Pradesh.

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 CHAPTER: 3
RESEARCH METHODOLOGY

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3.1 OBJECTIVE OF THE STUDY
1.To study the e-banking uses has increases well as expected or not.
2.To study the effect of E-Banking on quality services and customer
satisfaction.

3.2 RESEARCH HYPOTHESIS

Null Hypothesis (H0): E-baking services uses has not increases as

expected.
Alternative Hypothesis (H1): E-banking services uses has increase well
as expected.

3.3 SCOPE OF THE STUDY

The study focuses on E-Banking and the variables that impact E-
Banking users in Bhopal, as well as the level of customer satisfaction
with these services. It also allows everyone to see how many new
banking services are used by consumers. The research goes on to say
that modern facilities help to build a stronger relationship with
consumers. Customers nowadays want banking services to be
available 24 hours a day, seven days a week. Because of the extensive
use of internet technologies, the entire banking system has changed
in the current era. E-Banking has given all customers the ability to
operate across borders. E-Banking is an electronic payment system
that allows a bank or financial institution's customers to perform
financial and non-financial transactions over the internet. Customers
can use this service to access almost every banking service that was
formerly only accessible at a local branch, such as fund transfers,
withdrawals, and online bill payments. It is a system designed for
online banking that helps customers to reach them to bank account
easily and safely.
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History of Bhopal city
The study is conducted in Bhopal city which is located in the heart of
the state of Madhya Pradesh, the city of Bhopal is located between
North Latitude 23°16' and East Longitude 77°36' in India. The city of
Bhopal is situated in Madhya Pradesh's north-western zone. Bhopal is
situated in the country's central zone, as seen on a map of India.
Bhopal is bordered on two sides by two wide and magnificent lakes.
Bhopal, like a few other major cities in the world, is divided into two
parts: the old city and the new city. The northern part of the city is
known as Old Bhopal, while the southern part is known as New
Bhopal. The Upper and Lower Lakes of 24 Bhopal City are the two lakes
that make up the city. Bhopal has a population of 2,447,000 people
and over 430+ banks.

3.4 STUDY OF SECONDARY DATE

Population
Bhopal has a population of 1,798,218 people (17.98 Lakhs)
Female Population 862,050
Male Population 936,168
1,320,675 individuals are literate.

Sample
Urban and rural account holders of Bhopal city.

Sample Size
110 account holders

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Sampling Method
Convenient Random sampling method

Analysis of data
The study used the primary source to know about the preferences of
people who use E-Banking services. The study was undertaken using
an online survey method. A questionnaire is circulated among the
inhabitants of Bhopal city, which has a population of 1,798,218 people,
and their responses are collected to obtain data for the appropriate
test to be performed for the analysis. The questionnaire was circulated
through the internet, e-mail, and posting on social media and web
sites, and it was a comprehensive collection of data from consumers
of E-Banking services. The survey, which consisted of 20 multiple
choice questions, was scheduled to take no longer than two minutes
to fill the questionnaire. The researcher will verify the data right away
via email. When waiting for the optimal number of responses to
aggregate, it allows researchers to do preliminary analyses on
collected results. In comparison to other polling techniques, online
surveys have a range of advantages. Respondents will finish it
according to their own time, which saves time for analysts because the
data is automatically processed online, making interpretation simpler.
The questionnaire for this study was generated through Google Forms,
and a link to the questionnaire was sent to the participants at random,
and participation was voluntary as they were agreed to involve in the
study. The analysis of data is using descriptive statistics. (Kothari, 2004)

Secondary Data
Secondary data was gathered from books, magazines, and blogs,
allowing the researcher to get a better understanding of the issue area
from the perspectives of other authors. Studying the sources of
relevant papers to consider the broad ideas and context of that
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research was one of the most important ways we used to gather
secondary knowledge. To address and investigate another critical field
in the literature of change as a result of our study. While investigating
the idea, we uncovered several hypotheses that both endorse and
clarify it, as well as have potential solutions. Also, studying the
literature enabled us to determine what should be obtained from a
primary and secondary source of data.

3.5 LIMITATION OF THE STUDY

1. The study is limited to the bank in Bhopal.
2. Limited sample size.
3. The study is primarily focuses on digital banking services in the
Indian banking sector.
4. This study is based on secondary data.

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 CHAPTER: 4
DATA ANALYSIS & INTERPRETATION

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4.1 Data representation & Interpretation

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The total number of respondents is 110, with the majority of them (71)
are females. (which is 64.5 per cent of total respondents). 37
respondents are males (i.e., 33.6 per cent of total respondents) and 2
respondents prefer not to say (i.e., 1.8 per cent of the total
respondents).

The total number of respondents is 110, with the majority of them

(87) being under the age of 25. (which is 79.1 per cent of total
respondents).17 respondents are between the ages of 26 and 35
years old (i.e., 15.5 per cent of total respondents) The number of
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respondents between the 30 ages of 36 and 45 is 4 (i.e., 3.6 per cent
of total respondents), which is the second-lowest of all age groups,
and the number of respondents over 46 is 2 (i.e., 1.8 per cent of total
respondents), which is the lowest of all age groups.

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The total number of respondents is 110, with the majority of them (52)
being under the others category. (which is 47.3 per cent of total
respondents).23 respondents are Employed for wages that comprise
20.9 per cent of the total respondents. The number of respondents
under the category of students is 23 (i.e.,20.9 per cent of the total
respondents). 11 of them are self-employed which is 10 per cent of
the total population. and the number of respondents who are unable
to work is 1 (i.e., 0.9 per cent of the total respondents), which is the
lowest of all.

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The total number of respondents is 73, with the majority of them (35)
whose annual income is below 100000 Rs (which is 47.9 per cent of
total respondents). There are 17 respondents whose annual income is
between 100000 to 300000 Rs (i.e., 17.8 per cent of total respondents)
The number of respondents whose annual income is between 300000
to 600000 Rs is 11 (i.e., 15.1 per cent of total respondents), and the
number of respondents whose income is above 600000 Rs is 14 (i.e.,
19.2 per cent of the total respondents.

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The total number of respondents is 107, with the majority of them, 91
respondents are from urban area (which is 85 per cent of the total
respondents). 5 respondents are from a rural area that comprises 4.7
per cent of the total respondents and 11 respondents are from a semi-
urban area which is 10.3 per cent of the total respondents.

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The total number of respondents is 110, with the majority of them
(103) respondents have a saving account (which is 93.6 per cent of the
total respondents). 24 respondents are owning the current account
(which is 21.8 per cent of the total respondents). 32 owns fixed deposit
(which is 29.1 per cent of the total respondents) and 16 of them use
recurring deposit (which is 14.5 per cent of the total respondents).

The number of respondents who use different types of E-Banking

services like 93 of them uses ATM as an E-Banking service (which is
83.8% of the total respondents).87 uses Mobile 35 Banking as an

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E-Banking service (which is 78.4% of the total respondents). And 56
uses Internet Banking (which is 50.5% of the total respondents) which
is the least among all users.

The reason behind the preference of E-Banking services with the total
number of respondents being 110, with the majority of them being 79
prefer E-Banking services to pay bills online comprises 71.8 per cent of
total the respondents. 67 respondents prefer E-Banking services
because they can view their transaction status online which comprises
60.9 per cent of the total respondents. 96 respondents believe that
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online banking helps them to save their time which comprises 87.3 per
cent of the total respondents. and 82 respondents prefer E-Banking
services because it is easy to operate which comprises 74.5 per cent
of the total respondents.

The respondents were given the option that they can choose
more than one option under the head risk related to internet
banking and under 60 respondents believes that there is more
transactional risk in internet banking i.e., 54.5 per cent of the total
responses. 46 respondents believe that there is more password
risk as compare to all risks i.e., 41.8 per cent of the total
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 responses. 82 respondents believe that there are network issues
while using internet banking i.e., 74.5 per cent of the total
responses. According to 36 respondents that there is a risk of virus
attacks in using banking services through the internet i.e., 32.7
per cent of the total responses and 63 respondents believes that
there is a risk of hacking i.e.,57.3 per cent and 50 respondents
believes that there is a risk of unauthorized access while using
banking services through internet i.e., is 45.5 per cent if the total
responses.

From the total of 111 respondents, 68 respondents use ATM

(Automated Teller Machine) as E-Banking services and 43

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 respondents don’t use ATM as E-Banking services.17 respondents
use credit card like visa cards as E-Banking services and 85
respondents don’t use a credit card 38 as E-Banking services. 97
respondents use banking services through the internet and 14
respondents don’t use banking services through the internet.

According to convenience measurement, Customers find online

banking to be very convenient. Users can access their financial
transfers and bank account regardless of where they are as long
as they have access to the internet. It offers great facilities like
Viewing account balances, receiving statements, verifying recent

32 | P a g e
 expenses, exchanging money between accounts, and making
payments
View account activity, including deposits, transfers, checks, and
fees that have cleared, as well as interest that has been credited.
Customers benefit from the fact that they are not expected to visit
the bank. There is very little chance of making a mistake. It
provides excellent services such as checking accounts, retirement
accounts, money market accounts, certificates of deposit, and any
loans.
Interpretation: 25 respondents strongly agree that E-Banking
services are as per customers needs and want, 68 respondents
agree with this,16 respondents are neutral and 2 disagree with
the statement that E-Banking services are as customers needs and
requirement and 32 respondents strongly agree as convenience
measurement that E-Banking services offer great facilities to the
customers 61 agree to the statement, 15 respondents find this
statement to be neutral and 2 disagree with the statement that E-
Banking services offer great facilities to the customers.

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In terms of privacy, confidence can be described as a customer's belief
that online banking will handle his or her personal information equally.
Confidentiality, reliability, and availability are the three core
components of information management. Confidentiality ensures it is
exchanged only with those who are allowed to see it. Authentication
mechanisms that distinguish accounts, such as user IDs and
passwords, can assist in achieving the purpose of confidentiality. Other
management mechanisms, such as restricting each designated user's
access to the data system's resources, help to maintain confidentiality.
Furthermore, secrecy (as well as integrity) is important. In terms of
privacy 22 responses strongly agree that E-Banking services keep the
information confidential 59 responses agree that online banking keeps
their data confidential. 28 responses find it to be neutral and 2
disagree with the statement that it keeps information confidential. In
other head under privacy 23 responses believe that E-Banking services
provide a higher degree of privacy, 59 agree to the statement, 26
responses find it to be neutral and 3 disagree with the statement. And
the third head under privacy is client’s privacy as one of the main
features of E-Banking services 28 responses strongly agree to the
statement, 57 responses agree to the statement, 23 responses find it
to be neutral and 3 responses disagree with the statement.

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 Figure No.: 4.13
Under cost measurement of E-Banking services.22 responses strongly
agree that E-Banking services are very cheap, 48 agree to the
statement, 33 responses find it to be neutral and 7 disagree with the
statement.20 responses strongly agree that to the statement that E-
Banking services contribute to decreasing the price of the services, 46
respondents agree to the statement,32 respondents find it to be
neutral, 9 respondents disagree with the statement and 1 respondent
strongly disagree with the statement. 40 responses strongly agree that
E-Banking services save money spent in going to-and-from the bank to
get the services, 53 responses agree to the statement, 14 respondents
35 | P a g e
find it to be a neutral statement and 1 respondent disagrees with the
statement.
4.2 Hypothesis Testing
The aim of this section of the research work is to find out which of the
hypothesis should be accepted or to be rejected based on the data
analysed on the above section i.e “Data Analysis and Interpretation”.
Null Hypothesis (H0): E-baking services uses has not increases as
expected.
Alternative Hypothesis (H1): E-banking services uses has increase as
expected.
In order to test the hypothesis, the average response from the
respondents on the questionnaire has been taken to get an reliable in
the below table:-

Preference Through
Offline or card e- banking Total

Agree 68 43 111

Disagree 97 14 111

Total 165 57 222

As the level of significance has not been given, so by default the level
of significance would be taken as 5%.

Chi-square (x2) = ∑[(O-E)2/E]

Where, 0= Observe Frequency, E= Expected Variable

𝐶𝑜𝑙𝑢𝑚𝑛 𝑇𝑜𝑡𝑎𝑙 𝑋 𝑅𝑜𝑤 𝑇𝑜𝑡𝑎𝑙
To calculate E=( )
𝑊ℎ𝑜𝑙𝑒 𝑇𝑜𝑡𝑎𝑙

36 | P a g e
 O E O-E (O-E)2 (O-E)2/E
68 82.5 -14.5 210.25 2.5484
43 28.5 14.5 210.25 7.3771
97 82.5 14.5 210.25 2.5484
14 28.5 -14.5 210.25 7.5484

Total of (O-E)2/E =19.8510

Degree of Freedom = (C-1) (R-1)

Where, C = No, of Columns
R= No. of Row
Degree of Freedom = (2-1) (2-1)
= (1) (1)
=1
The table value of Chi- Square test at Degree of Freedom 1 &
Significance Level 5% is 3.841.
The general rule is that where the tabulated value of chi-square test is
greater than the calculated value of Chi-square test then the Null
Hypothesis will be accepted and the alternative Hypothesis will be
rejected but in case the calculated value of Chi-square test is greater
than the tabulated value of Chi-square test than the Null Hypothesis
will be rejected and the alternative Hypothesis will be accepted.
Hence As the calculated value of Chi-square test is greater than the
table value of Chi-square test at 5% level of significance, we can
conclude that the Null Hypothesis is rejected that means E-banking
services has increases well as expected.

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 CHAPTER: 5
RESULT, DISCUSSION, SUGGESTION & CONCLUSION

38 | P a g e
5.1 Major Findings
Customers, as well as banks and other organisations, benefit from
electronic banking technologies. E-banking will help banks improve
their performance, quality service.
1. Gender composition shows that most respondents were women
Gender-specific (64.5 per cent). Male (33.6 per cent). The study,
therefore, showed that e-banking was more popular among women
than men.
2. The age distribution of respondents revealed that the majority of
respondents (79.1 per cent) were from the age groups Less than 25
years and 26-35 years together (15.5%). it was followed by the age
groups of 36-45 years (3.6%) and Above 46 (1,8 per cent). The studies
found that e-banking services are more common among young
people than in upper age groups.
3. The place of residence of respondents shows that most of the
respondents are from urban area i.e., 85% as compared to rural area
i.e., 4.7 % which shows that the maximum users of E-Banking services
are from urban areas. E-Banking is not widely used in rural areas due
to a lack of resources.
4. results of the study indicated that ATM users are more (83.8%) as
compare to mobile banking or internet banking users. and mobile
banking service users (78.4%) is more popular as compared to
internet banking users (50.5%). which shows that internet banking is
still not prevalent among the users of banking services, as ATM or
mobile banking is popular.
5.The results indicated that the main reason behind the preference
for E-Banking services is that it saves times (87.3%) and after that, it
is easy to use (74.5%) followed by that the users can pay their bills
online (71.8%) and can view the transaction status (60.9%).

39 | P a g e
 6. The results of this study showed that the main reason behind the
risk of using internet banking is network issues.
7. The level of satisfaction of E-Banking customers in Bhopal city has
a significant relationship with convenience as an indicator of E-
Banking services.
8. Security measurement has a significant relation with the
satisfaction level of the E-Banking customers of Bhopal city.
9. Satisfaction derived from E-Banking services 18 respondents
strongly agree that they are satisfied with the E-Banking services
offered by the banks.35 respondents strongly agree that 52 they will
continue to use online services in future. this shows that people are
satisfied with the E-Banking services offered by the banks they find E-
banking to be safe, secure and convenient.
10. Electronic banking has improved the quality of services offered by
the bank maximum respondents (61) agree to the statement which
indicates that the quality of online services offered by banks has
improved.
11. The E-banking services provided by the banks offer services as
per customer’s needs many respondents agree to the statement
(55.5%) which shows that facilities are as per users’ needs and will.

5.2 Discussions & Suggestions

E-banking is not widely used in rural areas due to a lack of
understanding. Banks should take the requisite steps to educate their
customers about the different available E-Banking services, as well as
the benefits of using those services. Customers should be sent
demonstrations of E-Banking to encourage them to use it.
Banks should concentrate on cybersecurity problems including
sensitive identities that are susceptible to misuse in the cyber
environment. The cost of accessing Internet Banking services should

40 | P a g e
be reduced to maximise the number of people who use the service.
The E-Banking infrastructure should be improved to make online
inquiry and payment even more convenient.

5.3 Conclusion
1. The bank's service quality has increased as a result of electronic
banking. The majority of respondents agree with the statement,
indicating that the efficiency of online banking services has
increased.
2.E-banking services is not widely used in rural areas due to lack of
understanding.
3. The level of E-Banking customer satisfaction is strongly linked to
convenience as a predictor of E-Banking services.
4. The satisfaction levels of Bhopal city's E-Banking customers has
increased over a period of time.

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 BIBLIOGRAPHY

42 | P a g e
REFERENCES
P.V, N. (2016). “Customer Satisfaction Towards Online Banking In
Coimbatore District”. International Journal of Multidisciplinary
Research and Modern Education.
A.P.P. Perera, H. P. (2018). Impact of Internet Banking Service Quality
on Customer Satisfaction: An Empirical Investigation of Customers in
Sri Lanka. International Journal of Management, IT & Engineering, 22.
Adewuyi, I. D. (2014). Some researchers as Adeyemi, Ola and
Oyewole (2014) conducted a study on electronic banking product
and service in Nigeria. International Journal of Economic
Development Research and Investment, 25.
Adeyemi, O. A., & Ola O.S and Oyewole, F. (2014). Internet Banking
Functionality in Nigeria and Outcome of Customer Satisfaction: An
Empirical Investigation. International Journal of Academic Research in
Business and Social Sciences, pp. 195-204.
Alabar, T. (2012). Electronic banking services and customer
satisfaction in Nigerian banking industry. International Journal of
business and management tomorrow, pp. 8-10.
Areeba Toor, M. H. (2016). The Impact of E-Banking on Customer
Satisfaction: Evidence from Banking Sector of Pakistan. Journal of
Business Administration Research, 50.
Ayyar, N. P. (2020, March 13). Madhya Pradesh. Britannica.
Business jargons. (2021). e-banking. Retrieved from business jargons
website: https://businessjargons.com/e-banking.htm

43 | P a g e
ANNEXURE
Copy of Blank questionnaire
A Study on Customer’s Satisfaction Towards E-Banking Services
Demographic Information
1.Name
2. Gender- Female
Male
prefer not to say
3. Age- Below 25 years
26 - 35 years
36 - 45 years
46 and above
4. Educational Qualification- Bachelor’s degree
Master’s degree
Professional degree
Other
5. Employment Status- Employed for wages
Self-employed
Retired
Other

6. Annual Income- Below 100000

Rs100000-300000
44 | P a g e
 Rs 300000-600000
600000 & Above

7. Place of Residence- Rural

Urban
Semi-urban

8. Types of Bank account- Savings a/c

Current a/c
Fixed deposit a/c
Recurring deposit a/c

9. Which type of E-Banking services you use- ATM

Mobile Banking
Internet Banking

10. Why you Prefer E-banking services- Pay your Bills Online
View Transaction Status
Time-Saving
Ease of Access

11. Risk related to internet banking- Transactional risk

Password risk

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 Network issues
Virus attacks
Hacking
Unauthorized access

yes No
12. Usage of E-Banking service-
1- Do you permanently use ATM?
2- Do you use a Credit card like Visa Card?
3- Do you use banking services through
the internet?
E-banking Services
13. Convenience measurement

1. E-banking services are fit my needs and wills?

Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree

2. E-banking services offered great facilities?

Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree

14. Privacy measurement

1. E-banking services are confidential

Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree
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2. Using E-banking services provides privacy Strongly Agree, Agree,
Neutral, Disagree, Strongly Disagree

3. Client's privacy is one of the main features of E-banking services

Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree

15. Cost measurement

1. E-banking services are very Cheap

Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree

2. E-banking services contribute to decreasing the price of service

Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree 58

3. E-banking services save money spent in going to-and-from the

bank to get the service Strongly Agree, Agree, Neutral, Disagree,
Strongly Disagree

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