1. ACKNOWLEDGEMENT
We feel deeply in indebted towards people who have
guided us in this project. It would have not have been possible
to make such an extensive report without the help, guidance
and inputs from them. Most of my information source has
been from professional books of banking sector
Project Guide-
Prof: GOURI KUNDU
We would firstly like to express my gratitude towards
our college”MURSHIDABAD COLLEGE OF ENGINEERING
AND TECHNOLOGY”which has given us an opportunity to do
a project on”ONLINE BANKING SYSTEM” & guide
PROF:GOURI KUNDU for having shown so much of flexibility
& guiding in such a way that we were really learning the
subject all the time. She helped us in deciding the project topic.
She showed a lot of openness in her approach and I would like
to thank her for her support in a way that has lead to proper &
effective learning.
Secondly we would like to thank Mr.Amar Mandal the
senior officer of SBI. For spending his precious time for my
project and giving me ample of good ideas about the project.
Last but not least we are grateful to all ours family
members & friends for being our side always. Without their
help and Motivation it would have been impossible to complete
this project.

2. Executive Summary
“E-banking”- The execution of financial services via internet,
reducing cost and increase in convenience for the customer to access the
transaction. e- banking is an umbrella term for the process by which a
customer may perform banking transactions electronically without visiting a
brick-and-mortar institution. The following terms all refer to one form or
another of electronic banking: personal computer (PC) banking, Internet
banking, virtual banking, online banking, home banking, remote electronic
banking, and phone banking. PC banking and Internet or online banking are
the most frequently used designations. It should be noted, however, that the
terms used to describe the various types of electronicbanking are often used
interchangeably.
The ever increasing speed of internet enabled phones & personal assistant,
made the transformation of banking application to mobile devices, this
creative a new subset of electronic banking i.e. mobile banking. In 1999 &
2000 mobile banking as an established channels, still seems to be a distant
prospect.
The internet is revolutionizing the way the financial industry conducts
business online, has created new players who offer personalize services
through the web portals. This increase to find new ways and increase
customer loyalty to add the value to this product and services.
Banks also enables customers lifestyle needs by changing and increasing
preference for speed and convenience are eroding the traditional affinity
between customer and branch offices as a new technology disinter mediates
traditional channels, delivering the value proposition hinges on owing or
earning the customer interface and bringing the customer a complete
solution which satisfies their needs. Smart card is a new trend which
provides the opportunity to build an incremental revenue stream by
providing an ideal platform for extended application and services. Banks
are well positioned to play central role unit in future M-commerce market.
Banks have strong relationships with corporate and business customers and
a wide experience in providing them with corporate banking services. Bank
provides a multimedia of small and large retailers with acquiring
functionality in credit card transactions. Customers have trusted
relationships with banks and a lower propensity to switch banking
providers.

3. Table of Content
 Introduction
 Types of E-Banking
 Project scope
 Objectives of the proposed system
 Feasibility study
 Software requirement specification (SRS)
 Entity Relationship Diagram
 Data Flow Diagram
 Database Table overview
 System Specification
 Pros N Cons
 Conclusion
 Bibliography
 Securities of E-Banking
 Conclusion
 Bibliography

4. INTRODUCTION
E-banking is the wave of the future. It provides enormous benefits to
consumers in terms of ease and cost of transactions, either through Internet,
telephone or other electronic delivery. Electronic finance (Efinance) has
become one of the most essential technological changes in the financial
industry. E-finance as the provision of financial services and markets using
electronic communication and computation. In practice, e-finance includes
e-payment, e-trading, and e-banking.
According to the definitions from the Bank for International Settlement
(BIS-EBG, 2003b), e-payment creates considerable efficiencies and is
superior to traditional paper based solution. E-trading is referred to as a wide
variety of systems that provide electronic order routing, automated trade
execution, and electronic dissemination of pre-trade and post-trade
information. With the help of the e-trading systems, the transactions can be
executed at a remote server and information can be conveyed to a remote
location. And e-banking means the provision of retail and small value
banking products and services through electronic channels and large value
electronic payments and other wholesale banking services delivered
electronically. Although clients have enjoyed great convenience of e-
banking and bankers have improved cost efficiency of banks (Lin and Lin,
2006, 2007), e-banking may lead to unstable financial environments. In
other words, e-banking could make the financial markets less manageable by
the regulators. Internet banking refers to the deployment over the Internet of

5. retail and wholesale banking services. It involves individual and corporate
clients, and includes bank transfers, payments and settlements, documentary
collections and credits, corporate and household lending, card business and
some others.Since its inception Internet banking has experienced strong and
sustained growth. According to Jupiter Media, Internet traffic for all United
States banks which grew by 77.6 per cent between July 2000 and July 2001,
compared with overall World Wide Web traffic growth of 19.8 per cent over
the same period. Another source estimated that the share of United States
households using Internet banking will increase from 20 per cent in 2001 to
33 per cent in 2005, and that by 2010 there might be 55 million users.
Internet banking operations currently represent between 5 per cent and 10
per cent of the total volumeof retail banking transactions both in the United
States and in Europe. This is less than the share of Internet securities trading,
estimated at between 20 and 25 per cent of the total, but much more than .
toverall business to-consumer (B2C) e-commerce, which represent leaa then
total 2 % of the retail trade

6. TYPES OF E-BANKING
The common assumption is that Internet banking is the only method of on-
line banking. However,this is not strictly the case, as several types of service
are currently available:
• PC Banking - The forerunner to Internet banking has been around
since the late 1980's and is still widely used today. Individual banks
provide software which is loaded on to an SME's office computer.
The SME can then access their bank account via a modem and
telephone link to the bank. Access is not necessarily via the Internet.
• Internet Banking - Using a Web browser, a user can access their
account, once the bank's application server has validated the user's
identity.
• Digital TV Banking- Using the standard digital reception equipment
(set top box and remote control), users can access their bank account.
Abbey National and HSBC services are available via Digital TV
providers. One of its main selling points is that no account details are
transmitted via the World Wide Web;

7. • Text Phone Banking - HSBC have introduced this service to allow
customers with text phones to check their balance, pay bills and
transfer money.
Internet banking can be split into two distinct groups:
• Traditional banks and building societies use the Internet as an add-on
service with which to give businesses access to their accounts.
• New Internet-only banks have no bricks and mortar presence on the
High Street. Therefore, they have lower overheads and can offer
higher rates of interest and lower charges.
PROJECT SCOPE
The project’s aim is to automate the system,pre-checking the inclusion of all
required material and automatically process the transactions used in a
banking. The criterions which include over here is to creation of an account
and its all respective perspectives. The data used by the system is stored in a
database that will be the centre of all information held about the customer
and the base for the remainder of the process after initial signing up been
made. This enables things to be simplified and considerably quickened
,making the jobs of the involved people easier. It supports the current
process but centralizes it and makes it possible for decisions to be made
earlier and easier way.

8. The main goal of the system is to automate the process carried out in the
bank with improved performance an realize the vision of paperless banking.
some of the goals of the system are listed below:-
 Manage large number of customer details with ease.
 Manage all details of the student who are registered with the bank and send
appropriate details about latest policy of the bank to each of its customer.
 Create customer account and maintain its data efficiently and effectively.
 View all the details of the customer.
 Create a statistical report to facilitate the finance department work.
 Activities like updating, modification, deletion of records should be easier.
OBJECTIVES OF THE
PROPOSED SYSTEM
The aim of the proposed system is to address the limitations of the
current system .The requirements for the system has been gathered
from the defects recorded in the past and also based on the feedback
users of the previous metrics tools.
Manual Process
 Inquires for an existing service
or some specific information
Customer
physically visits
the bank
The incharge clerk checks the
specification and answers the
query
Associated and integrates the
information as needed
Leaves
the
bank

9. 
The development of the new system contains the following activities
which try to automate the entire process keeping in view of the
database integration approach. Following are the Objectives of the
proposed system:
1. The administrators have grates accessibility in collecting the consistent
information that is very much necessary for the system to exist and coordinate.
2. The system at any point of time can give the customers information related to
their
 Accounts and accounts status
 The balance enquiry
 The fund transfer standards
Raises a request for new
checkbook by filling in the
prescribed form
Customer
physically visits
the bank
The incharge clerk accepts the
request and prepares the
cheque book with respect to
given specification
The cheque book is sent for
manages initials
Customer
makes a
counter sign
and receives
the checkbook

10.  The cheque book request
3. The system can provide information related to the different types of accounts that
are existing within the bank.
4. The system can provide the bank administration with information on the number of
customers who are existing in the system.
5. The system at any point of time can provide the information related to the executed
transactions by the customer.
6. The system with respect to the necessities can identify all the history details of the
trial participants along with their outcome of the results.
7. The system with respect to the necessities can provide the status of research and
development process that is under schedule within the organization currently.
8. With proper storage of the data in a relational environment the system can
Applegate itself to cater to the standards of providing a clear and easy path for future
research standards that may arise due to organizational policies.

11. FEASIBILITY STUDY
A significant transformation in banking system has occurred in the world.
The online system of banking and improvements has been made through
recognizing difficulties encountered by the customer and the authority.
Both qualitative and quantitative research, through parent/career surveys.
Focus groups and staff training sessions have influenced the online process.
As a result this had produced an efficient and user friendly system, that
relies on an effective online form, but on the coordination between ban and
its customer.
A comprehensive feasibility study of social, economical and technical
aspects has also been made and implemented as below:-
• Social Feasibility
 It has simplified the banking procedure.
 Customers and banking authority had a huge acceptance to the
notion.
 It had a good social impact and no objections or problems regarding
the project is found
• Economic Feasibility
 The project is economically Feasible since we are getting ample
economic support required for the project from banking authorities.
• Technical Feasibility
 Minimum requirement for execution of the project is a java
supporting operating system since the connection to the database
will be made using JSP and SERVLETS,minimum of 64 MB of
RAM, a database software, a server and a web browser with which
we were previously equipped.

12. DATABASE DRIVEN WEB
APPLICATION
A database wb application is an appliction wizard based on WWW(WORLD
WIDE WEB) and database using web browser as a client
• TRADITIONAL CLIENT-SERVER(2-tier archietechture)
A client computer handles the user interface (Access forms, Oracle forms,
reports) and a database server stores the data.The actual functionality
(business logic)of the application resides on the client and/or in the
databases.
• WEB BASED MULTI-TIER ARCHIETECHTURE
A client computer uses a browser to access information from two or more
servers(web servers, application servers, database servers) i.e. a web server
handles a web request, an application server handles the dynamic request
and a database server stores the data.

13. System Specification
SOFTWARE SPECIFICATION
 Client on Internet: Web browser(any),operating system(any)
 Client on Intranet: Client software, Web Browser, Operating
System (any)
 Web server: Apache Tomcat or Glassfish, Operating System(any)
 Database Server: MS-access, Operating System(Microsoft
Windows<any version>)
 Development End: Net beans (J2EE, Java, Servlets, JSP), MS-
Access (DB tool).
HARDWARE SPECIFICATION
CLIENT SIDE :-
PROCESSOR RAM DISK SPACE
INTERNET
EXPLORER 6.0
PENTIUM II at 500
MHz
64 MB 500 MB
SERVER SIDE :-
APACHE TOMCAT PENTIUM III at
1GHz
512 MB 1GB
MS-ACCESS PENTIUM III at
1GHz
512 MB 512 MB

14. DATABASE TABLE
OVERVIEW
The database tables which are used over here are ten in number which are
customer,administrator,account,transaction,businessloan,homeloan,
personal loan,educational loan,agricultural loan.The structures of the tables
are shown as follows:
1.customer
ATTRIBUTE NAME ATTRIBUTE TYPE ATTRIBUTE SIZE
F_NAME Text 50
L_NAME Text 50
ACC_NO Number 50
E_MAIL Text 20
BR_NAME Text 40
USER_ID Text 10
PIN Text 5
DOB Text 10
2.administrator
ATTRIBUTE NAME ATTRIBUTE TYPE ATTRIBUTE SIZE
USER_ID Text 20
PASS_WD Text 10

15. 2.account
ATTRIBUTE NAME ATTRIBUTE TYPE ATTRIBUTE SIZE
ACC_NO Number 50
OPENDATE Text 10
BALANCE Number 100
2.transaction
ATTRIBUTE NAME ATTRIBUTE TYPE ATTRIBUTE SIZE
SL_T Number
ACC_NO Number 50
DOT Text 10
DESOT Text 20
CORD Text 5
AMOUNT Number
2.businessloan
ATTRIBUTE NAME ATTRIBUTE TYPE ATTRIBUTE SIZE
TYPEOF_BUSINESS Text 100
ANN_INC Number 100
AMT_LOAN Number 100
TENURE Number 10
SECURITY_DET Text 100
PAN_NO Text 50
BR_NAME Text 20

16. F_NAME Text 50
L_NAME Text 50
ADD Text 100
ACC_NO Number 50
CON_NO Number 10
2.homeloan
ATTRIBUTE NAME ATTRIBUTE TYPE ATTRIBUTE SIZE
LOC_PRO Text 100
AR_CONS Text 100
OCC_DET Text 100
AMT_LOAN Number 100
TENURE Number 10
SECURITY_DET Text 100
PAN_NO Text 50
BR_NAME Text 20
F_NAME Text 50
L_NAME Text 50
ADD Text 100
ACC_NO Number 50

17. CON_NO Number 10
3.personalloan
ATTRIBUTE NAME ATTRIBUTE TYPE ATTRIBUTE SIZE
REASON_LOAN Text 100
OCC_DET Text 100
ANN_INC Number 100
AMT_LOAN Number 100
TENURE Number 10
SECURITY_DET Text 100
PAN_NO Text 50
BR_NAME Text 20
F_NAME Text 50
L_NAME Text 50
ADD Text 100
ACC_NO Number 50
CON_NO Number 10
4.educationalloan
ATTRIBUTE NAME ATTRIBUTE TYPE ATTRIBUTE SIZE

18. TYPEOF_COURSE Text 100
PRE_EDU_QUALIFICATION Text 100
SEC_MARKS Number 100
HIGHSEC_MARKS Number 100
GRADUATION_MARKS Number 10
ANN_INC Text 100
TENURE Number 10
PAN_NO Text 50
BR_NAME Text 20
F_NAME Text 50
L_NAME Text 50
ADD Text 100
ACC_NO Number 50
CON_NO Number 10
4.agriculturalloan
ATTRIBUTE NAME ATTRIBUTE
TYPE
ATTRIBUTE SIZE
AR_LAND Text 100
ANN_PRO Text 100
OCC_DET Number 100

19. ANN_INC Text 100
TENURE Number 10
SECURITY_DET Text 50
PAN_NO Text 50
BR_NAME Text 20
F_NAME Text 50
L_NAME Text 50
ADD Text 100
ACC_NO Number 50
CON_NO Number 10
PROS N CONS
Features of Internet banking
The features available from an on-line bank account are similar to those
which are available via 'phone banking or visiting the local branch. On-
line banking features do differ between the banks, but usually include:
 Transfer of funds between accounts;
 It brings efficiency in CRM(Customer relationship
management)
 Make Payment of bills
 Introduces new & innovative products &services.
 View balance and statements.
 Brings door to door services.

20.  Create, view and maintain Standing Orders
 Have evolutionary trend at a globle scenario.
 Customer can View Direct Debits.
Advantages of Internet Banking
 Opening & closing of accountes
 Make the payments of merchandise transaction through Debit &
Credit cards.
 It gives reliefs to their customer from carrying heavy cash.
 Enables prompt & speedy operation to clients.
 It saves lot of time to their customers &convenient to access.
Disadvantages of Internet Banking
 Customer may have to face risky transaction & fraud.
 Failure of power supply cause to break down of system.
 Loss of heavy income at times of settlement of higher magnitude.
 Cost involved in trainning staff may not be profitable specially in
times of attrition.

21.  Development of an attitude of lethargy.

22. CONCLUSION
Thus reaching to the conclusion of our project we observe that Traditional
banks offer many services to their customers, including accepting customer
money deposits, providing various banking services to customers, and
making loans to individuals and companies. Compared with traditional
channels of offering banking services through physical branches, e-banking
uses the Internet to deliver traditional banking services to their customers,
such as opening accounts, transferring funds, and electronic bill payment.
E-banking can be offered in two main ways. First, an existing bank with
physical offices can also establish an online site and offer e-banking services
to its customers in addition to the regular channel. For example, Citibank is
a leader in e-banking, offering walk-in, face-to-face banking at its branches
throughout many parts of the world as well as e-banking services through
the World Wide Web. Generally, e-banking is provided without extra cost to
customers. Customers are attracted by the convenience of e-banking through
the Internet, and in turn, banks can operate more efficiently when customers
perform transactions by themselves rather than going to a branch and dealing
with a branch representative.
E-banking services are delivered to customers through the Internet and the
web using Hypertext Markup Language (HTML). In order to use e-banking
services, customers need Internet access and web browser software.
Multimedia information in HTML format from online banks can be
displayed in web browsers. The heart of the e-banking application is the
computer system, which includes web servers, database management

23. systems, and web application programs that can generate dynamic HTML
pages.
One of the main concerns of e-banking is security. Without great confidence
in security, customers are unwilling to use a public network, such as the
Internet, to view their financial information online and conduct financial
transactions. Some of the security threats include invasion of individuals'
privacy and theft of confidential information.
On October 1, 2000, the
electronic signatures bill took effect, recognizing documents signed online
as legal. Some banks plan to begin using electronic checks as soon as they
can work out various security measures.
The range of e-banking services is likely to increase in the future. Some
banks plan to introduce electronic money and electronic checks. Electronic
money can be stored in computers or smart cards and consumers can use the
electronic money to purchase small value items over the Internet.