Challenges of E-Banking in India

The electronic banking has various advantages than the traditional banking system which is simple and convenient for the users. The advantages are-

The use, acceptance, adoption and application of internet technology to businesses to boast their performances are not something new. Saffu et al., (2008), states that there has been a significant increase in the use and application of e-commerce in businesses in the past decade. E-commerce has benefits such as reduction in costs, increased business opportunities, reduced lead time and providing more personalized service to the customers (Turban et al., 2008). Internet banking or e-banking is one of the many tools of e-commerce adopted by the banking industry. Tools of information technology such as internet banking have significantly improved the quality of services offered by the banking

The main objective of implementing ICT in an organization is to enable it achieve its goals. Information system is regarded costly, but the changes that have taken place in the information system over a time has greatly reduced the cost of transmitting data, the acquiring storing, and transformation of data. In the banking industry for example the introduction of ATM, e-banking and smartcard has made the distribution of banking services more efficient. Indeed, it has brought about a lot of competition in the financial institutions, the banking methods have evolved, with a lot of innovations in the banking industry.

Internet as a strong means of communication has greatly helped to boost the online banking process and making it a future demand of today’s banking industry.

Since the evolution of e-banking, banking transaction has become very convenient or easy for customers to perform. However this technology has introduced a large set of risk. The breaches of security and disruption to the electronic banking system can damage the reputation of a bank. If a bank encounters a security breach, it can cause a customer to lose confidence in a banks electronic delivery channel. The Internet has grown exponentially. The Internet helps improve the communication between the bank and customers. The adoption of e-banking poses some challenges to the banking industry such as operational challenges which are fraud, processing errors, system disruptions, or other unanticipated events resulting in the institutions inability to deliver efficient services to their customers. There are several risk associated with the use of e-banking which includes systems failures, processing

Several macroeconomic factors indicate that the basic ingredients for successful creation of a digital ecosystem are rapidly falling in place, far exceeding the supply side capabilities that support the Indian government’s agenda of financial inclusion. For instance, digital banking offers numerous advantages that work towards improving the same, largely riding on the fact that Indian consumers have shown tremendous preference for digital technologies, with

ABSTRACT ……………………………………………………………………….. iii OZ ………………………………………………………………………………….. iv ACKNOWLEDGEMENTS ………………………………………………………....vi LIST OF TABLE ………………………………………………………………..…...x LIST OF FIGURES ………………………………………...…………………..…...xi 1 AN INTRODUCTION TO INTERNET BANKING…………………………..….1 1.1 Background of the Study ………………………………………………..…...1 1.2 Definition of internet banking …………………………………………...…...2 1.3 The Aim of the Study ……………………………………………………..…5 1.4 The Scope of the Study …………………………………………………..…..5 2 LITERATURE REVIEW ………………………….…………………………..…..7 3 INTERNET

Internet/Computer Experience: 4.7% of Internet bank account holders had less than 6 months of experience using the Internet; 12.5% had 6 to 12 months experience; 39.1% had used the Internet for 1 to 3 years; 28.1% for 4 to 6 years and 15.6% used the Internet for at least 7 years. Therefore, of those with Internet bank accounts, nearly 83% had used the Internet for at least one year. However, of the respondents without Internet bank accounts, 75.8% had used the Internet for at least one year.

In this 21st century the Internet has made revolutionary impact on all aspects of human life. Out of all, banking operations have greater impact of ICT on its day-today happenings. An e-cash payment system is one of the evidence of impact of internet and information Communication technology jargons. In this process a consumer/client opens an account with the banking organization or other which could give and receive money in the digital coins form. In the case client 's account is deposited in the form of real money, as it is attached to the client 's checking account in reality.

Nowadays, most people are familiar with new technology development of electronic banking systems. Its not only provide the basic services like fund transfer and bill payments, but also doing the advance including provide the loan and card application. Electronic banking can define as the use of electronic delivery channels for banking products and services. Electronic banking services generally offered in two ways either traditional bank that is combine traditional and electronic delivery channels or virtual bank that operate entirely through electronic banking channel without having a branch network. It makes the business operational more efficient, faster and easier

In the days of virtualisation where working mothers and travelling sales-team prefer to use flexi-time and remote jobs profile; Internet is being adopted as a parallel medium of communication, transaction, and social networking. Internet banking is fast gaining momentum across the globe for its convenience and ease of conducting transactions at a speed and service levels never dreamt of, a decade ago.

To achieve the objectives of the study, the following hypotheses are formulated: H01: Ha1: H02: There is no significant difference in the present e-banking scenario of ATM, Internet banking, Mobile banking and Credit cards in India. There is a significant difference in the present e-banking scenario of ATM, Internet banking, Mobile banking and Credit cards in India. There is no significant difference in the impact of ATM, Internet banking, Mobile banking and Credit cards on customer satisfaction in PSBs, PSIBs and PSFBs in India. There is a significant difference in the impact of ATM, Internet Banking, Mobile banking and Credit Cards on customer satisfaction in PSBs, PSIBs and PSFBs in India.

This research work intends to assess the extent of electronic payment in banking activities as well as identify the various types of electronic banking.

Research Scholar, School of Management Studies, Vels University, Pallavaram Chennai, India1 Research Scholar, School of Management Studies, Vels

In 2010 the total amount of internet bank users was estimated to be 100,000,000, which is about 8.5 percent of India’s population. Recently, the speed and excellence of banking has changed by the latest technological advancements. Core banking solutions is the most important facility which improves the competency of banking services. Further, introduction of automated teller machines (ATMs) enabled customers to perform banking operations anytime. ATM is a highly accepted e-banking service among customers and works as an alternative banking channel (Hans & Kamath, 2013). Initially it was limited to the disbursal of cash but now it is used for delivery of a wide range of banking services such as accessing the account information, depositing cash, withdrawing money, generating mini-statement and online shopping, recharging online, booking tickets and many such facilities.