East African Scholars Journal of Economics, Business and Management
Abbreviated Key Title: East African Scholars J Econ Bus Manag
ISSN 2617-4464 (Print) | ISSN 2617-7269 (Online) |
Published By East African Scholars Publisher, Kenya
Volume-2 | Issue-8 | Aug-2019 |
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DOI: 10.36349/easjebm.2019.v02i08.011
Article History
Received: 18.07.2019
Accepted: 06.08.2019
Published: 20.08.2019
Published By East African Scholars Publisher, Kenya 452
Research Article
Awareness of Internet and Internet Banking in Indian Banks
Dr. Asha Singh
Assistant Professor, Department of Business Studies Princess Noora Bin Abdul Rahman University, Saudi Arabia
*Corresponding Author
Dr. Asha Singh
Abstract: The research paper describes the awareness and uses of internet and internet banking in Indian banks.
Particularly, it seeks to examine the current status of internet banking in Indian banks. Banking is a financial Institution
that handles cash, credit and other financial transactions. It is a safe place to store extra cash and credit. Various
developments have taken place in Indian banks. The biggest revolution came in Indian banks is digitization. Now day’s
new devices/technologies are providing several customer touch points. Customers touch a computer screen and
computers are providing information. Online transactions are done through internet banking. All the banks has used
internet banking services but adoption of this service is less in India. It includes customer awareness and time consuming
process. Online banking is also known as internet banking. It is an electronic payment system in which the customer
conducts transactions electronically via the internet. Internet technology will be the backbone of Indian Banking Industry
in future. Banking system can’t survive without internet technology. Day by day increasing change in technology, it leads
to e-banking services in various banks.
Keywords: Online banking, Indian banks, customer, computer, fund transfers, customers.
1. INTRODUCTION
Internet banking came in UK and USA in
1920s. It became prominently popular during 1960s
through electronic funds transfers and credit cards. The
concept of web-based banking came into existence in
Europe and USA in the beginning of 1980s. It has been
estimated that around 40 percent of banking transaction
would be done through internet. Internet banking is
very useful to those customers who have computer with
internet connection. Through online customer can get
various facilities like they can get full information about
their account, cheque book request etc.
Meaning of E-Banking:
E-Banking is the electronic bank that provides
the financial service for the individual client by means
of internet. Presently there are 30 private banks (21 old
and 9 new), 27 public sector banks and 36 foreign
banks operating in India. List of banks who are
providing internet banking such as State bank of India,
State bank of Mysore, State bank of Hyderabad, State
bank of Travancore, State bank of Bikaner and Jaipur,
Union Bank, Bank of India, Canara bank, Corporation
bank, City Union bank, Indian bank, Indian overseas
bank, HDFC bank, CITI bank, Indusind bank, Kotak
Mahindra bank, IDBI bank, Federal bank, Deutsche
bank, Yes bank, Bank of Maharashtra, Catholic Syrian
bank, Karur Vysya bank, DCB bank, Lakshmi vilas
bank, South Indian bank, Jammu and Kashmir bank,
Karnataka bank. Indian banks offer to their customers
following e-banking products and services: Automated
Teller Machine (ATMs), Internet Banking, Mobile
Banking, Telebanking, Electronic Clearing Services,
Electronic Clearing Cards, Smart Cards, Door step
Banking, Electronic Fund Transfer. According to a
recent survey conducted by the Federal Reserve, 71
percent of adults with bank accounts use online banking
services, and 38 percent access services via mobile
devices, an increase of five percent over the previous
year.
2. Literature Review
A large number of researchers have been
studied related to Internet Banking. A review of the
relevant literature has been described as under:
Asha Singh; East African Scholars J Econ Bus Manag; Vol-2, Iss-8 (Aug, 2019): 452-456
© East African Scholars Publisher, Kenya 453
England et al., (1998), Furstet al.,
(2000a,2000b,2002a and 2002b) found that banks in all
size categories offering internet banking were generally
more profitable and tended to rely less heavily on
traditional banking activities in comparison to non-
internet banks.
Prema C. (2013) examined the process of
Internet banking services and stresses that marketing
experts should emphasize these benefits and its
adoption provides and awareness can also be improved
to attract consumer’s attention to internet banking
services in her research article “Factors Influencing
Consumer Adoption of Internet Banking in India”.
Khalil and Pearson (2007) have found that
trust is the most important factor for accepting internet
banking facilities. To encourage Internet adoption,
banks need to develop strategies that improve the
customer’s trust in the underlying technology. The other
factors include quick response, customer control on
transaction (personalization), order tracking facilities
and privacy are other important in customers, making
customers feel safe in their transactions, employees who
are consistently courteous and employees who have the
knowledge to answer customer question.
Abou-Robich, Moutaz (2005) studied how to
analyse comfort levels and attitude of users towards
online banking facilities. The findings resulted that
there is a correlation between attitude towards e-
banking and feeling of security with regard to their
demographic variables.
Featherman, MauricioSanchez (2002) studied
that perceived risk inhibited consumer adoption
intentions as well as perception of the usability,
usefulness of online payment.
Statement of the problem:
Online banking provides a convenient method
of conducting bank business to customers from their
home and personal computer. Consumers can check
information regarding their account balances and
review it twenty four hours. This study is an attempt to
sketch the uses of internet and internet banking in India.
In the modern era, the activities of the Indian banks
have increased many folds and internet banking
customers have ability to perform online transactions.
Several Institutions are now providing free banking
services such as prepaid cards, pay-day loans, business
loans etc.
Objectives of the Research
To study several e-banking services adopted by
Indian banks.
To explain the different forms of online banking.
To understand the concept and uses of online
banking.
To study the importance and advantages of online
banking.
To understand the effect of online banking in the
performance of banks.
To evaluate the awareness of E-Banking among the
Indian banks.
RESEARCH METHODOLOGY:
This study has done to know the active internet
users and internet banking in India.
Data Collection Tools:
The study was based on secondary data.
Researcher has collected that data from the statista
portal and internet world stats. This was collected
during the year 2015-2018.
Analysis of Data: The collected data was made in
tabulated form and then analyzed.
In the Table 1 while China has got its internet
users to the extent of 751 million of its population.
India has its internet users to the extent of 462 million
of its population. Thus India is the 2
nd
highest user of
internet in the world.
Table1. Number of internet users in the Asia Pacific
region as of January 2018, by country
Source: Statista: The statistics Portal
Country Internet Users(million)
China 751
India 462
Indonesia 132.7
Japan 118.5
Bangladesh 81.7
Philippines 67
Vietnam 64
Thailand 57
South Korea 47.35
Pakistan 44.6
Malaysia 25.08
Australia 21.74
Taiwan 20.84
Nepal 16.19
Mynamar 18
Sri Lanka 6.71
Hong Kong 6.46
Singapore 4.83
New Zealand 4.18
Papua New Guinea 0.91
Fiji 0.5
Timor-Leste 0.41
Maldives 0.34
North Korea 0.02
Asha Singh; East African Scholars J Econ Bus Manag; Vol-2, Iss-8 (Aug, 2019): 452-456
© East African Scholars Publisher, Kenya 454
Table2. Countries with the biggest share of internet
users in Asia as of June 2018
If we look over the statistics in Table 2 while
China has got its internet users to the extent of 38.9% of
its population. India has its internet users to the extent
of 22.4%of its population of 126.7 crores (in 2016) as
on 6/2018. Thus India is the 2
nd
highest user of internet
in the world.
Now internet in India has become sources of
studying, reading but sources obtaining various
knowledge for our youth generation.
Fig.1. Percentage (%) internet users in Asia
If we see the Figure 1 China has the got the highest
internet users and India is the 2
nd
highest user of
internet in the world. The report found that 97% of
users use mobile phones as one of the devices to access
internet. 87% or 493 million Indians are regular users.
In Urban area there are approximate 293 million
internet users and 200 million in rural areas.
Table3. Number of internet users in India from 2015
to 2023
Source: Statista: The statistics Portal
From the Table 3 we see that there is a rapid
growth of internet users . It is assumed that number of
internet users in 2020 will be 564.5 million, in 2021
increase by 601 million, in 2022 increase by 634.9
million and in 2023 increse by 666.4 million.
Fig.2. No. of internet users (in Million)
The figure 2 shows that the growth of internet
users took faster turn and went on increasing with much
faster pace of like advanced countries. If we now look
over the statistics in Table 3 the number of users is
259.88 in 2015, 295.39 in 2016, 437.4 in 2017, 483 in
2018, 525.3 in 2019, 564.5 in 2020, 601 in 2021, 634.9
in 2022 and 666.4 in 2023.With such tremendous
growth, India has now become the most popular users
of internet usage.
Table4. Internet usage and Population Statistics of
India
Source: Internet World Stats (Usage and population
statistics)
Statistics contained in Table 4 indicates that
India entered into internet usage with just 0.1% of its
population in 1998. Since then the number of internet
users in India started increasing slowly although the
population remained constant up to 2004 but number of
users speeded up and took faster turn/jump from 7%in
2009, 8.5% in 2010, 11.4% in 2012, 30%in 2015 and
36.5% in 2016. Indeed the bumper jumps from 2015
onwards are broadly due to the popular contribution of
banking sector. Thereafter, the growth in number of
S. No.
Year
No. of internet
users (in millions)
1
2015 259.88
2
2016 295.39
3
2017 437.4
4
2018 483
5
2019 525.3
6
2020 564.5
7
2021 601
8
2022 634.9
9
2023 666.4
Year Users Population Percentage
1998 1,400,000 1,094,870.68 0.10%
1999 2,800,000 1,094,870.68 0.30%
2000 5,500,000 1,094,870.68 0.50%
2001 7,000,000 1,094,870.68 0.70%
2002 16,500,000 1,094,870.68 1.60%
2003 22,500,000 1,094,870.68 2.10%
2004 39,200,000 1,094,870.68 3.60%
2005 50,600,000 1,112,225,812 4.50%
2006 40,000,000 1,112,225,812 3.60%
2007 42,000,000 1,129,667,528 3.70%
2009 81,000,000 1,156,897,766 7.00%
2010 100,000,000 1,173,108,018 8.50%
2012 137,000,000 1,205,073,612 11.40%
2015 375,000,000 1,251,695,584 30.00%
2016 462,124,989 1,266,883,598 36.50%
Asha Singh; East African Scholars J Econ Bus Manag; Vol-2, Iss-8 (Aug, 2019): 452-456
© East African Scholars Publisher, Kenya 455
users took faster turn and went on increasing with much
faster pace of alike advanced countries. India has now
become the most popular users of internet usage.
Table5. Digital Population in India as of January
2018
Source: Statista: The statistics Portal
From the table 5, we see that the number of active inter
users are 462 million, Active mobile internet users are
430.3 million, active social media users are 250 million
and active mobile social media users are 230 million.
Fig.3. Numbers of users (in millions)
The Figure 3 shows that there are many
internet users in India. The percentage of number of
active internet users are 34%, active mobile internet
users are 31%, active social media users are 18% and
active mobile social media users are 17%.
Table6. Number of Face book users in India from
2015 to 2023
Source: Statista: The statistics Portal
From the table 6, we see that the number of
Face book users 135.6 in 2015, 165.57 in 2016, 248.3 in
2017, 281 in 2018, 313.6 in 2019, 346.2 in2020, 378.9
in 2021, 411.5 in 2022 and 444.2 in 2023. We see that
numbers of facebook users are also increasing day by
day.
Table7. Top Indian banks with their rating points
Source: Rating on Google Play Store
RESULTS
In the present competitive era, while the entire
world is trying to do their best and have the respectful
position in the field of info technology and India has
now become one of the largest broadcasting networks in
terms of infrastructure. The above banks have the
highest number of internet banking under their names
and are rendering excellent service in the Indian
Banking Sector. The customers have more choices in
choosing their banks. There is a competition within
Indian Banks. Indian banking is known as World’s best
banking but we can’t say which bank provides best
services because nobody will satisfy with a single bank.
According to table 7, the rating point of Axis Bank is
top in internet banking. Its rating is 4.26 out of 5.It
shows people are using more internets banking in Axis
Bank. In the present study for Indian internet banking
we have taken ten banks.
3. Facilities available under Internet banking in
India
Bill payment service: Through internet banking.
We can pay electricity bill, gas bill, water bill, LIC
policy etc.
Fund transfer: We can transfer our money from
one bank account to other account either within a
single financial institution or across multiple
institutions by using many mobile apps like pay
pal, venom, Google wallet, Square cash, Payme,
bhim etc. without the direct intervention of bank
staff.
Credit card customers: A credit card is a card,
signed by a cardholder that grants a permission to
charge their card for a limited period of time as
mentioned on card.
Railway pass and online booking: we can take out
railway pass and book railway ticket, flight ticket,
bus ticket etc. through online banking.
Investing through internet banking: Monitor
investment policy through online then invest on
mutual funds, share markets etc.
Recharging prepaid phones: Prepaid bill is the
leading website for easy mobile recharges online.
The best way to recharge your prepaid service is
through Express Recharge or My Vodafone.
Shopping at fingertips: Now a day’s life is very
busy and no one has time to go outside for
Internet Users Numbers(in millions)
Active internet users 462
Active mobile internet users 430.3
Active social media users 250
Active mobile social media
230
Year Numbers(in Million)
2015 135.6
2016 165.57
2017 248.3
2018 281
2019 313.6
2020 346.2
2021 378.9
2022 411.5
2023 444.2
Bank Name Rating Points (out of 5)
Axis Bank 4.26
Corporation Bank 4.14
Allahabad Bank 4.08
Bank of Baroda 4.07
HDFC Bank 4.06
Oriental Bank of
4.04
Central Bank of India 4.03
Indian Bank 4.03
Union Bank of India 4.02
Canara Bank 3.98
Asha Singh; East African Scholars J Econ Bus Manag; Vol-2, Iss-8 (Aug, 2019): 452-456
© East African Scholars Publisher, Kenya 456
everything so through online banking we can order
any quality product at lowest prices.
4. Merits of Internet Banking
There are many merits of internet banking given below:
It is more convenient;
Customer can do it from home;
Its charges are very nominal;
Cash back and other rewards;
It emphasis on mobile and online banking;
No age limit is needed for internet banking;
It provides customer satisfaction by exchanging the
product;
It simplifies the choice of the customer;
Money credited in account in case of any defective
product or cancellation of ticket;
It saves time.
5. Demerits of internet Banking
There are many demerits of internet banking given
below:
Chances of fraud increases;
Internet connection is must;
For deposit or cash withdrawal we have to go to
bank.
6. CONCLUSION
Banking in India has rapidly innovated to keep
up with the times. The internet banking has a great
impact on the Indian banking system. To define and co-
ordinate banking technology, RBI (Reserve bank of
India) set up a number of committees. Indian banks are
rapidly progressing due to digital transformation in
banking and it has two sides – the positive and the
negative side. The internet banking offers many
transactions and inquiries to be performed online
without visiting the branch but chances of fraud has
increased. Innovations like cash transfers, bill payment
of gas, electricity etc. through mobile phones and online
banking customers are satisfied. ATMs facility for easy
withdrawals and payments, Passbook entries has been
replaced by hassle-free e- statement. The most
important thing is that banks have been able to ensure
that all these transactions are safe and secure. Apart
from these technologies, there are many other
technologies which Indian banks will adopt in future.
Now internet banking has become the necessity of
customers.
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https://in:reuters.com
https://www.statista.com