study & launch of online saving account of sbi in kathua

Study of launch of new tech product “online SB account”
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1. BRIEF PROFILE OF STUDENT
PersonalDetails
Name: Harvinder Singh
Father’s Name: Mr. Nirmal Singh
Date of birth: 21st June 1992
Nationality: Indian
Sex: Male
Marital Status: Single
Language known: English, Hindi, Punjabi
Permanent address: H.No. 228, Sector-2, Ajit Nagar,
Near Sher-e-Kashmir B.Ed. college, RaniBagh,
Gadigarh, Jammu (J&K)
E-mail: hsprince84@gmail.com
Contact No: (+91) 9697557778
(+91) 9622001171
Academic Details
Passed 10th class examination from JKSBSE with 81.4% marks in 2007.
Passed 12th class examination from JKSBSE with 67.4% marks in 2009.
Done BBA from Jammu University with 63.6% marks in 2012.
Pursuing MBA from The Business School, Jammu University (2012-2014).

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2. BRIEF PROFILE OF PROJECT MENTOR
PersonalDetails
Name: Yatin Sharma
Father’s Name: Mr. Rakesh Sharma
Date of birth: 7th May 1885
Nationality: Indian
Sex: Male
Marital Status: Married
Language known: English, Hindi
Permanent address: Flat No. 215, Royal Nest Apartments,
Sanik Colony, Jammu (J&K)
E-mail: yatinvs7@yahoo.co.in
Contact No: (+91)9906003257
EducationalDetails
 Done BBA from Jammu University in 2006
 Done MBA from The Business School, Jammu University (2006-2008).
Working Details
 Worked as “personal banker” in HDFC Bank Bahu Plaza for 2008-2009.
 Working as “Branch Manager” in SBI, Kali Bari, Kathua presently.

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3. BRIEF PROFILE OF ORGANIZATION.
3.1 History of SBI.
“SBI is one of India’s top banks with the largest branch network and asset base”
The evolution of State Bank of India can be traced back to the first decade of the 19th century.
It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank
was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever
joint-stock bank of the British India, established under the sponsorship of the Government of
Bengal.
Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of
Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated
the modern banking scenario in India, until when they were amalgamated to form the Imperial
Bank of India, on 27 January1921.
An important turning
point in the history of
State Bank of India is
the launch of the first
Five Year Plan of
independent India, in
1951. The Plan aimed at
serving the Indian
economy in general and
the rural sector of the
country, in particular.
Until the Plan, the commercial banks of the country, including the Imperial Bank of India,
confined their services to the urban sector.

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The origin of State
Bank of India (SBI) go
back to the early 19th
century when three
banks were
established in the
three presidency
towns of the British
East India Company –
Calcutta, Bombay and
Madras. In 1921, the
three presidency
banks were merged to
form the Imperial
Bank of India. SBI
came into being as a
successor to the
Imperial Bank of
India on Jul 1, 1955,
with the passing of the
SBI Act by
Parliament. SBI
(Subsidiary Banks)
Act was passed in
1959, enabling SBI to
take over eight former
State-associated
banks as its
subsidiaries (later
named Associates).
The GOI through RBI
is the principal
shareholder of SBI,
holding 59.7% of the
equity capital.
Moreover, they were not equipped to respond to the growing needs of the economic revival
taking shape in the rural areas of the country. Therefore, in
order to serve the economy as a whole and rural sector in
particular, the All India Rural Credit Survey Committee
recommended the formation of a state-partnered and state-
sponsored bank. The All India Rural Credit Survey
Committee proposed the takeover of the Imperial Bank of
India, and integrating with it, the former state-owned
or state-associate banks. Subsequently, an Act was passed in
the Parliament of India in May 1955. As a result, the State
Bank of India (SBI) was established on 1July 1955. This
resulted in making the State Bank of India more powerful,
because as much as a quarter of the resources of the Indian
banking system were controlled directly by the State.
Later on, the State Bank of India (Subsidiary Banks) Act was
passed in 1959. The Act enabled the State Bank of India to
make the eight former State-associated banks as its
subsidiaries. The State Bank of India emerged as a pacesetter,
with its operations carried out by the 480 offices comprising
branches, sub offices and three Local Head Offices, inherited
from the Imperial Bank. Instead of serving as mere
repositories of the community’s savings and lending
to creditworthy parties, the State Bank of India catered to the
needs of the customers, by banking purposefully.
The bank served the heterogeneous financial needs of the
planned economic development. The roots of the State Bank
of India rest in the first decade of 19th century, when the
Bank of Calcutta, later renamed the Bank of Bengal, was
established on 2 June 1806. The Bank of Bengal and two
other Presidency banks, namely, the Bank of Bombay

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(incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three
Presidency banks were incorporated as joint stock companies, and were the result of the royal
charters. These three banks received the exclusive right to issue paper currency in 1861 with the
Paper Currency Act, a right they retained until the formation of the Reserve Bank of India.
The Presidency banks amalgamated on 27 January 1921, and there organized banking entity took
as its name Imperial Bank of India. The Imperial Bank of India continued to remain a joint stock
company. Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of
India, which is India’s central bank, acquired a controlling interest in the Imperial Bank of India.
On 30 April 1955 the Imperial Bank of India became the State Bank of India.
SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout the country. The State Bank of India was
named the 29th most reputed company in the world according to Forbes 2009 rankings and was
the only bank featured in the "top 10 brands of India" list in an annual survey conducted
by Brand Finance and The Economic Times in 2010. SBI was ranked 285th in the Fortune Global
500 rankings of the world's biggest corporations for the year 2012.
3.2Logo:
The logo of the State Bank of India is a blue circle
with a small cut in the bottom that depicts perfection
and the small man the common man - being the
center of the bank's business.
3.3Slogans:
4 "PURE BANKING, NOTHING ELSE",
5 "WITH YOU - ALL THE WAY",
6 "A BANK OF THE COMMON MAN",
7 "THE BANKER TO EVERY INDIAN",
8 "THE NATION BANKS ON US".
3.4Associate banks

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SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all
use the "State Bank of" name, followed by the regional headquarters' name:
1. State Bank of Bikaner & Jaipur
2. State Bank of Hyderabad
3. State Bank of Mysore
4. State Bank of Patiala
5. State Bank of Travancore
Earlier SBI had seven associate banks, all of which had belonged to princely states until the
government nationalized them between October 1959 and May 1960. In tune with the first Five
Year Plan, which prioritized the development of rural India, the government integrated these
banks into State Bank of India system to expand its rural outreach. There has been a proposal to
merge all the associate banks into SBI to create a "mega bank" and streamline the group's
operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six.
Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds
98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the
government hold the balance of 1.77 %)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will inch very close to the 10
trillion mark (10 billion long scale). The total assets of SBI and the State Bank of Indore stood
at 9,981,190 million as of March 2009. The process of merging of State Bank of Indore was
completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26
August 2010.
3.5 Current Boardof Directors

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As on 14 January 2013, there are fifteen members in the SBI board of directors:-
 Pratip Chaudhuri (Chairman): Shri Pratip C. Chaudhuri is Executive Chairman of the
Board of State Bank of India. Prior to this
appointment, he was Deputy Managing Director
& Group Executive (International Banking). He
has experience covering International Banking,
Credit, Corporate Banking, Treasury and
Operations, besides overseas experience in
Canada. He was earlier posted as Chief General
Manager (Foreign Offices), Managing Director,
erstwhile State Bank of Saurashtra and Chief
General Manager, Chennai Circle.




Hemant G. Contractor (Managing Director)
Krishna Kumar (Managing Director) S. Visvanathan (Managing Director)
Diwakar Gupta (Managing Director)

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 S. Venkatachalam (Director)
 D. Sundaram (Director)
 Thomas Mathew (Director)
 S.K. Mukherjee (Officer Employee Director)
 Rajiv Kumar (Director)
 Jyoti Bhushan Mohapatra (Workmen Employee Director)
 Deepak Amin (Director)
 Harichandra Bahadur Singh (Director)
 D. K. Mittal (Director)

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4. RESPONSIBILITIES ASSIGNED BY THE MENTOR
1. To attend the bank customers and answer to their queries.
2. To help customers in filling different forms related to bank account, ATM cards, loans
etc.
3. To address the customers about new schemes, offers and interest rates.
4. To give online demo of “Online SB Account Opening” to all cyber cafes of Kali Bari
area of Kathua.
5. To address the respondents about online banking and the benefits provided by the SBI to
its customers.

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5. ONLINE BANKING
Let us start with the brief explanation of Online Banking or Internet Banking.
Online banking (or Internet banking or E-banking) allows customers of a financial institution to
conduct financial transactions on a secure website operated by the institution, which can be a
retail or virtual bank, credit union or building
society.
To access a financial institution's online
banking facility, a customer having personal
Internet access must register with the
institution for the service, and set up some
password (under various names) for customer
verification. The password for online banking
is normally not the same as for telephone
banking.
Financial institutions now routinely allocate customer numbers (also under various names),
whether or not customers intend to access their online banking facility. Customer numbers are
normally not the same as account numbers, because a number of accounts can be linked to the
one customer number. The customer will link to the customer number any of those accounts
which the customer controls, which may be cheque, savings, loan, credit card and other accounts.
Customer numbers will also not be the same as any debit or credit card issued by the financial
institution to the customer.
To access online banking, the customer would go to the financial institution's website, and enter
the online banking facility using the customer number and password. Some financial institutions
have set up additional security steps for access, but there is no consistency to the approach
adopted.
5.1Features ofOnline Banking
The common features fall broadly into two categories viz.

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A bank customer can perform some non-transactional tasks through online banking, including:
 viewing account balances
 viewing recent transactions
 downloading bank statements, for example in PDF format
 viewing images of paid cheques
 ordering cheque books
 download periodic account statements
 Downloading applications for M-banking, E-banking etc.
Bank customers can transact banking tasks through online banking, including -
 Funds transfers between the customer's linked accounts
 Paying third parties, including bill payments (see, e.g., BPAY) and telegraphic/wire
transfers
 Investment purchase or sale
 Loan applications and transactions, such as repayments of enrollments
 Register utility billers and make bill payments
 Financial institution administration
 Management of multiple users having varying levels of authority
 Transaction approval process
 The process of banking has become much faster
6. E-BANKING WITH STATE BANK OF INDIA
The Internet banking portal of the bank, enables its retail banking customers to operate their
accounts from anywhere anytime, removing the restrictions imposed by geography and time. It's
a platform that enables the customers to carry out their banking activities from their desktop,
aided by the power and convenience of the Internet.

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6.1Services ProvidedBy SBI
Using Internet banking services, you can do the following normal banking transactions online:
1. Funds transfer between own accounts.
2. Third party transfers to accounts maintained at any branch of SBI
3. Group Transfers to accounts in State Bank Group
4. Inter Bank Transfers to accounts with other Banks
5. Online standing instructions for periodical transfer for the above
6. Credit PPF accounts across branches
7. Request for Issue of Demand Draft
8. Request for opening of new accounts
9. Request for closure of Loan Accounts
10. Request for Issue of Cheque Book
Apart from these, the other salient value-added features available are:
1. Utility bill payments
2. Online Ticket Booking for travel by Road, Rail and Air
3. SBILIFE, LIC and other insurance premia payments
4. SBI and other Mutual funds Investments
5. SBI and other Credit Card dues payments
6. Tax Payment – Income, Service, State Govt
7. Customs Duty Payment
8. Online Share Trading (eZ-trade@SBI)
9. Online Application for IPO
10. Fee Payment to select educational institutions including IITs and NITs
Truly smart services to cover most of your banking transactions. All this and much more, from
your desktop.

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6.2 Internet Banking Security Tips Provide By SBI:
8 Golden Rules to make your Internet Banking experience safe and secure.
1. Change your Password at regular intervals
2. Help SBI in preventing frauds (phishing) by reporting such incidents to
report.phishing@sbi.co.in
3. Access portal by typing https://www.onlinesbi.com Do not
click on any shortcuts/links
4. Avoid accessing your account from public places like
cyber cafes
5. Use virtual keyboard to enter user ID and
Password
6. Avoid entering sensitive info in pop-ups
7. Track your transactions and usage history regularly
8. Use latest and genuine software on your system with secure settings
7 ONLINE PRODUCTS OF SBI
Following are the products of SBI which are easily accessed online by the customes:
1. Online Savings Bank Account(new tech product)
2. Online Education Loan Processing
3. Online Home loan Processing
4. Online Car Loan Processing
5. Online Personal Banking
6. SME Online Loan Request
7. Online Demat Account

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7.1 Online SB Account (New TechProduct)
A new service has been introduced by SBI and that is “ONLINE SB ACCOUNT” where SB
stands for savings bank. Savings bank account is a type of account which is for general
customers in which they can save their money and also can earn some interest on it. People can
now open their savings bank account in any branch of SBI in sitting their home with the use of
internet. All they have to do is to logon to www.sbi.co.in and click the “online SB Account” and
proceed further.
7.2 Online Account Application--Facility to Apply ForSavings Bank
Account Online
With the introduction of various electronic banking channels, customers are increasingly
carrying out banking transactions without actually visiting the branch.
The Bank has been offering e-TDR/e-STDR/e-RD to its Savings Bank customers. However,
there has been strong demand for a facility to apply Savings Bank Account online from Retail
clients which will help prospective customers establish the first relationship with the Bank
conveniently. On these lines, we have developed an online application system for our Savings
Bank Account. This document gives the detailed process-flow of the Online Savings Bank
Account Application (OSBAA) facility with screen-shots of the relevant screens.
7.3 Features ofthe Product:
1. This facility is available only for Regular Savings Bank Account.
2. There are two parts of the Account Opening Form (AOF):
A. Customer Information Section (CIS) and
B. Account Information Section (AIS).
3. Part A of the AOF will have to be filled in completely before proceeding to Part B.
4. Frequently Asked Questions (FAQs) are placed at Annexure II, which will enable the
applicant to know about this product.

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7.4 The process:
i. A link stating ‘Online Account Application’ will be provided on the home page of our
Corporate website viz. www.sbi.co.in for online application. A similar link will also be
available on the home page of Internet Banking Portal viz. www.onlinesbi.com
ii. This link, when clicked, will open the Account Opening web page in a new window.
iii. All the fields in the physical version of Account Opening Form will be present in the
online version and the applicant will be systematically guided through the form filling
process in such a way that none of the mandatory fields can be left blank.

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iv. After filling in the personal information the system will generate and display a
Temporary Customer Reference Number (TCRN). An SMS conveying the TRCN will be
generated and sent to the applicant’s mobile number given in the application form. Then
the applicant will be asked to give additional details and details of the KYC documents
that he will be presenting as a part of the account opening procedure. The applicant will
be given time period of 30 days to apply to any branch of his choice and present the
originals and copies of these documents at the branch, failing which the application will
be discarded by the system automatically.
v. Upon successful completion of the Customer Information Section the details of the
application will be stored in the INB server.
vi. Thereafter, the applicant will proceed to the Account Information Section where he/she
has to enter the TCRN (Annexure II, page 9). Upto three TCRNs can be entered in case
applicant(s) want to open a joint account. The system will prompt him/her to fill in
information for detail of the account (A/C type, ATM/INB/Mobile Banking detail etc).
Successful completion of the filling up process of the AIS will generate a Temporary
Account Reference Number (TARN), which will be sent through SMS to the 1st
applicant’s mobile number.
vii. The applicant(s) has the option of printing the Account Opening Form (AOF) with help
of TARN and 1st applicant’s date of birth. The print out of the Account Opening Form
has to be taken only on A 4 size white paper.
viii. The applicant(s) needs to visit any branch of his choice for completion of the remaining
formalities.
ix. When the applicant(s) visits the branch, there can be two possible scenarios :
Scenario I: The applicant(s) gives the printed AOF with the relevant KYC documents.
After verification of the documents at the branch, the applicant(s) will be asked to sign on the
print out of the application form and submit his /their passport size photographs and KYC
documents. The Branch Official will invoke Create Personal Customer (Screen No. 62001)
(Annexure III) in the CBS and enter the TCRN in the Reference No. field to fetch all the data

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from INB server to the CBS. The CIF will be set up after the branch teller checks this data,
amends it if necessary and transmits it in CBS. After creation of the CIF in CBS account will be
opened by branch in the usual manner as is being done presently.
Scenario II: The applicant(s) has not taken a print of the AOF and has the TCRN, TARN and
the relevant KYC documents.
The Branch official will go to the menu ‘Print/Save Account Opening Form’ in the Online
Account Application available in onlinesbi.com/sbi.co.in and enter the TARN given by the
applicant(s) and date of birth of the first applicant in the field provided there. The account
opening form with the details entered by the applicant(s) will display on the screen and the same
can also be downloaded in PDF format. The Branch Official will then take a print out of the
entire form on A4 size white paper only. After verification of the documents at the branch, the
applicant(s) will be asked to sign on the print out of the application form and submit his /their
passport size photographs and KYC documents. The Branch Official will invoke Create Personal
Customer (Screen No. 62001) (Annexure III) in the CBS and enter the TCRN in the Reference
No. field to fetch all the data from INB server to the CBS. The CIF will be set up after the branch
teller checks this data, amends it if necessary and transmits it in CBS. After creation of the CIF
in CBS account will be opened by branch in the usual manner as is being done presently.
x. All instructions issued by the Bank regarding opening of new account are applicable to
online account application. Hence, the AOF after opening of the account will be handled
in the usual manner.
5. Apart from being an extremely convenient mode of application for the customer, the
OSBAA will reduce the TAT for Savings Bank account opening considerably. This
feature will appeal to the tech savvy upwardly mobile segment and help the Bank acquire
new customers in this segment.

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Annexure I: FAQs
Q. 1. Who can submit information online for opening a Savings Bank account?
Ans: Any resident Indian desirous of opening a Savings Bank Account with any branch
of State Bank of India.
Q. 2. Can I open an account jointly?
Ans: Yes. You may open an account jointly, with up to three applicants.
Q. 3. Will KYC documents be required for all account holders?
Ans: Yes. KYC documents in respect of all joint account holders will be required.
Q. 4. Can the KYC documents be different for the joint account holders?
Ans: Yes, provided each submits a set of KYC documents as stipulated by the Bank.
Q. 5. Can a minor submit information online for opening a Savings Bank account?
Ans: A minor may submit information online for opening a Savings Bank account
provided he/she is more than 10 years old and can sign uniformly.
Q. 6. Can an account be opened in the names of more than three persons?
Ans: Yes, but in such cases you cannot submit the information online. Please approach
the branch for opening such accounts.
Q.7. Is there a time limit within which I must approach a branch after submitting the
information online?
Ans: Yes. You must approach a branch within 30 days of submitting the information
online. If the account is not opened within 30 days, your customer information will be
deleted from our records.
Q. 8. I will have to submit my personal information online. Is it safe?
Ans: Yes. The page you will submitting your information is VeriSign secured and the
information will be encrypted before transmission.

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Q. 9. Can I submit the documents to the branch by email?
Ans: No. Each person who wishes to be an accountholder will have to visit the branch
personally, show his KYC documents, and sign the AOF in the presence of an authorized official
of the Bank.
Q. 10. Can I submit the documents to any branch of SBI?
Ans: Yes. To locate a branch, use our Branch Locater. Once you have submitted the Account
Opening Form to one branch, you will not be able to submit the same form to another branch.
Q. 11. I have forgotten the TARN (Temporary Account Reference Number). Can I retrieve it?
Ans: When the TARN is generated, it is also sent to you by SMS. If that SMS is not available
with you, you will need to enter the information again and generate a new TARN.

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Annexure II: Online Application Form
It consists of the application form for online opening of savings bank account. The form
contains two sections viz.
1. Customer Information Section
2. Account Information Section
The first section consists of 3 forms viz.
a. Form for personal details
b. Form for additional details and
c. Form for identification details of the applicant.
In personal details form, the applicant has to fill the details regarding his name, father’s name,
mother’s name, date of birth, address etc. In the second form, the applicant has to fill the details
about religion, organization’s name, occupation, income, category etc. The third form is the
identification form for the applicant in which the applicant has to fill the information regarding
passport details, proof of identity and proof of address and details of any other bank a/c if any.

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The above form is filled for availing the primary services like issue of ATM or Debit Cards,
issue of cheque book, issue of online banking a/c etc. It’s the choice of the applicant whether he
wants these services or not. For availing such services some charge is to be deducted by the bank
annually subject to the terms and conditions of the bank. It is this form in which the applicant has
to choose the option that he wants to open a joint account or not. If he/she is willing to open a
joint account then a little bit of information related to the joint holder has to be put in the
application form with their photographs.

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The above form is the nomination form in which the applicant has to set the name of the nominee
for its account. Nominee is the person who has the authority to operate and he/she automatically
becomes the owner of the account after the death of the applicant subject to the terms and
conditions of the bank.

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8. SPECIFIC OBJECTIVES OF THE PROJECT
 To study new tech. product “online SB
account” of SBI.
 To create awareness to people about new
tech product i.e. “online SB account” of
SBI.
 To visit government as well as private
organizations and explain them the benefits of new tech product (online SB account).

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9. SCOPE OF STUDY
There is a wide scope of the study of this topic “ONLINE SB A/C” in both the areas Kathua as
well as Udhampur but at the same time it is exposed with some threats also because of the
following reasons:
 The people of Kathua are not aware of the banking services and other different products
of SBI. While talking to them, I realized that the people are ready to take the different
services but sometimes they are afraid of getting traped by the bank. So most of the time
they prefer not to indulge in any such activity. This could be solved by giving proper
awareness to them and making them believe that whatever it is not harmful for you. It
remains beneficial for you every time.
 Most of the people of Kathua district are not using the internet facility and they now want
to start using the internet. So online banking also has its feet set on this ground.
 Students are using internet largely as compared to other segment like the middle aged and
the old aged officials and thus it provides an opportunity to flourish in this segment.
 In Kathua, mostly the people prefer to go to bank to avail any service because they have
their person working on whom they believe and always in any circumstances take their
help. So people don’t want to try on themselves directly through home and don’t want to
take risk.
 Most of the middle aged and old aged people (i.e. people falling under age group 40 and
above) in Kathua district are not computer knowing and even if some are but not the
regular user of internet. So in this area the scope of the study becomes nil.

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10. LIMITATIONS OF THE STUDY
Followings are the limitations of the study on “Online Savings Bank Account” in Kathua and
Udhampur:
 The very first limitation was that people there in Kathua and Udhampur are not aware of
such type of interviews and questioning with the researchers. So they feel a kind of
shyness and embarrassment to talk to me. The people didn’t even want to hold the
questionnaire. They were feeling like I am someone who is coming to snatch their
property. This was very disappointing.
 The officials working in the department no matter government or private didn’t have time
to attend me and to fill the questionnaire. Some from them being very kind and gave me
appointment to meet and some didn’t bother about that. Hence some of the targeted
respondents were left because of this reason.
 Mostly the people of the area are not the user of internet so it becomes tough for them to
answer questions regarding online banking.
 Some of the respondents are not using any banking service and hence it becomes difficult
for them to understand the need of banking and other related services.
 Uneducated and illiterate people are not aware of the banking system and they think that
these banks will betray them if they will use their services and their belief on the banks
are lost somewhere and they are still not ready to believe on it.
 The study has to be completed during a short period of 2 months and it becomes nearly
impossible to understand all the ground procedures related to online banking services.

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11. PERIOD OF STUDY
The study covers a period of 2 months (8 weeks) from 15 May 2013 to 15 July 2013. This
seems to be a short period to understand the whole process and services of online banking and
the other products and their usability in real life. Beside this time constraint, I worked with my
full enthusiasm and got to manage my proceedings related to the marketing work as well as the
office work.
If I will ask to comment about the allotted time period, I would say, it’s a reasonable time period
to study a particular topic and the behaviour of people towards a particular product as in the case
of my topic “online savings bank account”.

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Research Design: The
research I undertook
was exploratory in
nature.
Universe: All the
people falling in the
age class of 18-30, 30-
50 and above 50 of
Kathua and Udhampur
constitutes the universe.
Sample unit: Kathua &
Udhampur
Sample size: 100
respondents (50 from
Kathua & 50 from
Udhampur)
Sampling Technique:
convenient and
purposive sampling
Tool of analysis:
simple mathematical
calculations by using
pie chart, bar graphs,
doughnut charts etc.
12. RESEARCH DESIGN
12.1 MEANING
It is a logical and systematic plan for directing a research study, the methodology and
techniques to be adopted for achieving the objectives.
A research design is the framework or a plan for study that guides the collection &
analysis of data. It is a blue–print for conducting a research or completing the research
study. It is that framework which keeps the research study relevant
to research to research problem & encourages economical
procedures in conducting research.
In the words of Prof. Bernard & S. Philip research design is “the
blue print for collection measurement & analysis of data that helps
the researcher in the allocation of limited resources”.
12.2 TYPES
1) EXPLORATORY RESEARCH DESIGN: This is also called as
informal research or investigation. This is preliminary phase & is
absolutely essential in order to get proper definition of the problem
on hand. An exploratory research focuses on the discovery of new
idea & generally based on secondary data.
2) DESCRIPTIVE RESEARCH DESIGN: Descriptive studies are
designed to describe something say the characteristics of users of a
given product, the degree of product use varies with income, age,
sex or the number who saw a specific T.V. commercial.
12.3 NATURE OF RESEARCH DESIGN
“A research design is indispensable for a research product. Unlike
the building plan, which is precise and specific, research is designed for a tentative plan
with a series of guide posts to keep one going on its right direction.”

31
Besides a research study can’t extensive and intensive, as the researchers may like it to
be it has to be geared to the availability of date and the cooperation of the informants
thus a research design represents a compromise dictated by many practical
considerations.
13. RESEARCH INSTRUMENT
13.1 Questionnaire
Collection of the information and data is done with the help of a questionnaire. A
questionnaire consists of multiple choices of questions.
Following is the questionnaire used by me to collect data.
Survey Questionnaire
We are conducting a survey on the status & effectiveness of New Tech. Products “Online Saving
Bank A/C” in Kathua and Udhampur. It is designed also to understand Internet users
perspectives on Internet banking, their experience with Internet banking. Please take a few
minutes to answer the following questions. The result of this evaluation will be used to improve
the future offerings.
RESPONDENT’s PROFILE
1. Respondent No.: __________ Name (optional): __________________________
2. Name of Organization you are related with:________________________________________
3. Gender
MALE FEMALE
4. Which community do you live in?
RURAL URBAN
5. Which district do you reside in?
KATHUA UDHAMPUR
6. Age of the person completing questionnaire.
18-30 30-50 ABOVE 50
7. What is your current occupation?

32
STUDENT SELF EMPLOYED GOVT. EMPLOYEE PVT.
EMPLOYEE NOT WORKING
1. Do you have any bank account?
Yes No
2. If yes, what type of a/c do you have?
Savings Current Both
3. In which bank you have your a/c?
SBI PNB J&K AXIS OTHER___________
4. Why had you opened your a/c in that bank (mentioned in the previous question)?
Convenient location Better facilities Trust worthiness
Referred by someone other__________________________________
5. How long have you been using the WWW (internet)?
Not used yet Less than 1 month
1 to 6 months More than 1 year
6. Do you use online banking?
Yes No
Only for respondents answered "Yes" to the previous question.
7. When will you use it?
Once in a week
Once in a month
Once in 6 months
Once in a year
8. What is the most important reason for which you opened an Internet bank account?
Convenience Curiosity Better rates
Safe and secure others______________________
9. What banking services do you use which your Internet bank offers?
Seeking product and rate information
Download personal bank transaction activity
On-line bill payments
Check balances on-line
Others _____________________________
INSTRUCTIONS FOR FILLING THE QUESTIONNAIRE
 Mark a tick in the box of your choice given at the end of option.
 Do not mark more than one option.
 Please give valuable suggestions at the end of questionnaire.

33
10. What was the single most important reason that you chose this particular bank as your
Internet bank?
I have a traditional bank account with the same bank
The brand name of the bank
The excellent service offered by this bank
Others____________________________
11. How will you rate your experience with online banking?
Poor Average Fair Good Excellent
12. Have you ever heard of SBI “online SB a/c”?
Yes No
13. If yes, have you ever used “online savings bank a/c” option of SBI?
Yes No
14. Have you ever experienced online banking of SBI(new tech. products)?
Yes No
15. If yes, do you find any difficulty in using online banking of SBI?
Yes No Not used yet
16. If yes, level of difficulty.
Very Low Low Average High Very high
These questions were askedif the respondent answered "No" to having an Internet bank
account.
17. What are the main reasons that you have not opened an Internet bank account yet?
Never heard of Internet banking
Concerned about security
Don't see any real value in having this type of account
Not available through my bank
Others_________________________
18. What is the main reason that you typically visit your bank branch?
To make the deposits
To get advice for investment options
To inquire about details of your account
To withdraw cash
Others (pls specify)_____________________
19. How likely is it that you will open an Internet bank account within the next 12 months?
Very Unlikely
Somewhat Unlikely
Neither Unlikely nor Likely

34
Somewhat Likely
Very Likely
20. In which bank you would likely to open your internet a/c?
SBI PNB J&K AXIS OTHER_____________
21. To open an internet bank a/c, which following factor is the most important for you?
Better rate and lower service charge
Convenience (24 hours service from anywhere)
Bank location (geographic)
The size of bank (in terms of asset)
Variety of features and services that are offered
14. DATA COLLECTION
Once the researcher identifies & defines the research problem & delimiting the
information needed to solve the problem, he takes the next step of getting the type &
sources of data that might yield the expected results. Data is collected through various
sources. It is human tendency & ingenuity to make use of available data if it solves his
problem; else he goes on to the data which is not readily available.
14.1 Process of Data Collection
There are two basic types of data: Secondary & Primary.
1. SECONDARY DATA: Secondary data is one which is already collected by
individuals or organizations which is either published or unpublished. In other
words, it is readily available in various forms & the researcher is to pick &
choose the extent & relevance to his needs. Thus, secondary data represent the
existing information which may be available from internal records or external
records.
Any Suggestion for new tech products and on-line banking of SBI:

35
All the information
relating the topic
collected by me was
from respondents
using personal
interview &
questionnaire. The
respondents chosen
for the interview
process consist of
people falling in 3
age groups viz. 18-
30, 30-50 & 50
above years who
are vitalizing the
services of Banks &
were ready to share
their opinions
about them.
2. PRIMARY DATA: Primary data is one which is collected details regarding his
research problem. Primary data is the first hand data collected by means of
observation & communication. In majority of
cases, researchers will have to go in for primary
data in addition to secondary data. The experts
have expected two basic methods or means of
getting the primary data namely ‘Communication
& Observation’.
a) Communication Method: Communication involves
the questioning the selected respondents to get the
detailed desired Information using a questionnaire.
 Questionnaire
 Interviews, etc.
b) Observation Method: Observation is the process of
observing the respondents about their current behavior
where no questions are asked & their observed behavior
or reaction is recorded.
14.2TOOLS OF DATA COLLECTION
It has been already pointed out that there were three basic
methods of getting the data namely survey, observation &
experiment. Data is collected through various sources.
1. SURVEY METHOD: Survey methods refer to all
methods of obtaining the needed information
through asking the questions to the respondents.
Prof. Tull D.S. & Hawkins D.I. define survey method as
“the systematic gathering of Information from the respondents for the purpose of
understanding &/or predicting some aspects of the behavior of the population of
interest”. Surveys are mostly conducted both in quantitative & qualitative

36
researches.
2. FIELD WORK: A particular & a specified place are selected for the collection of
data. In the field work method, it is easy to choose a particular group of persons
& the researcher may observe the different behavior or reactions of consumers.
3. INTERVIEWS: Interview is the process of communication where face to face
contact between the investigator & the respondent is established. I t is the
conversation arranged for the purpose of obtaining views of the respondent on
the topic of interest to the interviewer. There are three methods of conducting
interviews :-
 Personal interview
 Mail interview
 Telephone interview
15. SAMPLING
‘Sampling’ as a term is very familiar to us. Sample provides some base for our
judgments. Researchers use sample for arriving at certain conclusions, but such
sampling have stringent scientific rule to avoid errors in sampling.
According to Croxton & Cowdon,
“It may be too expensive or too time consuming to attempt either a complete or nearly a
complete coverage in research study. Thus, sample is a part of population, or a subset
from a set of units, which is provided by some process or other, usually by a deliberate
selection with the object of investigating the properties of the parent population or set.”
15.1 METHODS OF SAMPLING
The pertinent thing is to undertake the study of sampling methods which also called as
sampling designs.
1. PROBABILITY SAMPLE METHOD: The technique of sampling research is founded on the
theory of probability. Probability is a mathematical concept & indicates the likelihood or

37
the chance of happening or non-happening of a particular event. In other words,
probability is a measure of our expectation that an event will or will not happen.
2. NON-PROBABILITY SAMPLE METHOD: Non-probability sampling presents a case where
the chance of any particular unit in the population being selected is unknown. Since
randomness is not involved in the selection process, an estimate of the sampling error
can’t be made. In case of non- probability methods, the researcher has the full discretion
in selecting the sample elements. The most commonly used non-probability methods are:-
 Convenience sampling
 Snow-ball sampling
 Judgment sampling
 Quota sampling design

38
16. OBSERVATIONS
1. In both Kathua and Udhampur, SBI is dominated by J&K Bank. J&K Bank is the market
leader. People want to be customers of J&K bank because of two main reasons, first the
bank which is associated with the state govt. and second people are referred by other
people and their relatives who are working in the bank.
2. In Kathua, there are very less number of people who are internet known and thus don’t
use internet banking and in Udhampur the internet known people are quite large and
hence the users of internet banking are also more than that of Kathua.
3. Usually the private job holders use internet banking more frequently as compared to govt.
job holders. Students usually check their a/c once in a month.
4. People of both the regions are facing difficulty in getting information related to their
account and transactions on mobile through messages.
5. The toll free contact number of SBI for any kind of help for connections other than
BSNL/MTNL is not working.
6. Most of the people complaint about the pattern of password for the profile. They don’t
want to use the virtual keyboard as it is time consuming and difficult to remember.
7. There is very little awareness to the people of both Kathua and Udhampur as well about
new tech product of SBI.
8. Lot of people comes to the bank for depositing money. Load of bankers can be reduced
by installing some CDMs.
9. Most of the bank customers said that the officials/employees of the SBI possess negative
attitude towards the customers. They make customers to wait even if they are free and
doing nothing.
10. An identity card must be issued to the interns. While conducting the survey a lot of
people (say every two out of three) ask about the identity card issued by bank so that they
could believe that I am talking the information on behalf of SBI and that moment was
really embarrassing when I was unable to show them my identity.

39
17. DATA ANALYSIS OF KATHUA
During the survey, I came to know that there are 18 % people who are not using the banking
services i.e. they don’t
have bank a/c. These
people consist of students
and self-employed
individuals. Almost all the
educated people over the
age of 25 have their bank
a/c.
Mostly the persons who
are self-employed i.e. doing any kind of business have their current a/c as well as savings bank
a/c. A very famous
notion comes to my
mind by seeing this
result “business and
owner are two different
things”.
When asked from
people about the reason
for which they have
opened their a/c in that
particular bank then the
reply was unbelievable,
I analyzed that the
people usually choose

40
the bank which is convenient to
them. They don’t want to bother
about such services. Other main
reason was people usually open
their accounts when there is an
immense need i.e. in this case
most of the Pvt. Employee has
their a/c in private banks like
ICICI, HDFC etc. Only 18 % of
the people choose the bank by
considering the services
provided by the bank.
In kathua region, the market
leader is the j&k bank with the
market share of 36%. SBI stands
at rank 4th with only 10% of
market share.There are 50%
people who are known to internet.
Hence some extent, the scope of
online banking has reduced in the
area.
Out of that 50%, 82% of the
people are using the internet
banking and the remaining are not
internet known.
From the above mentioned
internet users, the highest

41
percentage is of those people
who operate their internet
account once in a month.
From the graph, I observed that
people opened their a/c for using
the banking services 24x7.other
main reason was the curiosity
factor which was seen in most of
the respondents. They wanted to
try online banking.
The main activity done by
internet banking users is the
checking and downloading of
personal bank transactions. The
other important activity
performed by the users is
checking of balance and seeking
the information regarding other
products
of SBI.

42
It has been seen that people choose internet banking with that bank which provides them the
excellent service, no matter how far is the bank location. Other main reason of opening an
internet a/c is that people take the internet banking facility of that bank in which they have their
traditional bank a/c.
Most of the people
rated the experience
as average where in
the second place,
some people rated it
as excellent. There
is no body who said
that it was a poor
experience with
online banking.

43
Most of the online bankers don’t know about the new tech product i.e. online SB A/C of SBI.
There are very less internet users of SBI. There are only one third of the users who have used
“online savings bank account” opening product.
In kathua, there are very less no.
of people who are using internet
banking of SBI. The main
reason is that the people having
their a/c in SBI are mostly govt.
employee and they are not
internet known. Also very less
number of students have their
a/c in SBI.
Some people said that there is
difficulty in using online
banking of SBI, may be in using
the website or to get the
requisite amount of information.

44
Approximately one third
of the users of online
banking of SBI rated the
level of difficulty as “low”
and remaining two third of
the respondents rated it as
“very low”.
When asked for the reason
for not opening an internet
account from the people
who don’t have their
online bank a/c, then they
said that they don’t see
any real value in having
such an account.
When I inquired of the
main reason for which
they have to visit the bank,
I came to know that
people visit there bank for
two main purposes viz. to
inquire about details of
their account and to make
the deposits. With the
introduction of ATMs there
are very less no. of people
who go to the bank for the
withdrawal of cash.

45
Forty percent of
the people said that
“variety of features
and services”
delivered by the
bank attracts them
the most. From the
graph, one can see
that convenience
doesn’t matter for
availing the
internet services of
the bank.
Since largest
market share is
occupied by J&K
bank, but when we
talk of future
opening of internet
bank a/c then SBI
grabs the
opportunity and
stood first with the
share of
approximately half
of the market of
Kathua region.

46
70%
30%
percentage of males and females
in the sample taken
male
female
18. DATA ANALYSIS OF UDHAMPUR
The sample taken for
research in Udhampur
consists of 70% of males
and 30% of females because
mostly in govt. as well as
private institutions the
number of females are less
as compared to the number
of males and even they are
very shy and do not want to
help us in interviewing them
and filling the questionnaire.
In the sample, the people
falling in the age interval of
18-30 are greatest in number
i.e. 64% and the persons
which are above the age of
50 are the less i.e. 24%
There are 84% people in
Udhampur who are using the
banking services and the
remaining 16% people
consist of students and the
self-employed people.
yes
84%
no
16%
percentage of people having
bank account

47
There are 68% of people
who have savings bank
account and 16% people
who have current account.
In Udhampur no person
from the sample taken has
both the current as well as
savings bank account.
The major share in
Udhampur region is
occupied by J&K bank and
after that the private banks
hold the position with 22%
of the market. SBI bank is
on the third place when we
talk of market share.
In J&K bank, mostly
customers are referred by
someone to open their
account and most of the state
govt. employees have their
account in J&K bank
because of their salary. The
other most important reason
is convenient location.

48
There are 16% people in
Udhampur region who are
not using the internet and
70% people have been
using the internet for
more than one year. So by
considering this I can say
that there is a wide scope
of online banking in
Udhampur region.
There are already 72% of
people who are using
internet and 28% of the
people are not using it.
Nearly half of the users of
internet banking operate
their internet account
once in a month to check
the newly launched
products and other
information.

49
The main reason for opening
of internet account or getting
internet facilities is
unidentifiable; I placed it in
other factors. However, most
of the people used internet
banking because of its 24x7
nature.
Half of the online banking
users use it for online payment
of bills. There is nobody who
uses internet banking for
downloading transaction
activity.
57% of the people said that
they opened their internet bank
account in that bank in which
they had their traditional bank
account. Some of the people
are attracted to the excellent
services offered by the bank.

50
50% people rated the
overall experience with
online banking as good
whereas about 21% people
said that the experience
was excellent.
There is very less
knowhow of the SBI new
tech product that is online
savings bank a/c. The main
reason for this is no
awareness program and not
even an ad have been made
and shared with the people
so how come they would
know about that.
I was surprised to see that
all the users of online
banking of SBI have used
this product which is a
great sign of the positive
and unimaginable future
scope of the product.

51
From the set of online
banking users there are very
less amount of SBI online
banking users. Usually the
private bank customers are
the users of online banking in
Udhampur region.
All the users of online
banking of SBI said that the
working on the website is the
child’s play and thus it is not
at all difficult for them.
A wide number of people said
that they don’t see any real
value in opening internet bank
a/c. these people consist of
mostly the govt. employees
and the students. Other main
reason for the same is that the
people are concerned about
security and they think that
working on internet is not at
all secure.

52
Around 41% people are
willing to get internet
banking services within a
year. One main reason for
this is maybe they did not
know the benefits of e-
banking and then after
talking to me and knowing
all the benefits they are
ready to avail the service.
But still a small number of
people do not want to open
an internet bank a/c in the
near future because they
never felt the need of it.
Nearly half of the people
who are willing to use online
banking within a year want
to get the online banking of
SBI. And after SBI, J&K
bank holds the position.
There are 30% people who
are attracted by the
convenience factor and after
this variety of features and
services given by the bank.

53
19. CONCLUSIONS
1. In Kathua and Udhampur, launch of new tech product “online SB account” has not
proved beneficial for the bank. There are very less no. of persons who have used this.
Most of the respondents said that this product is impractical and it does not save time of
the people. The person has to go to the bank for checking of KYC and being there at the
bank the person can directly fill the form there and what is the fun of filling form online
at home and taking the print outs if you have to go the bank afterwards.
2. For opening of a savings bank account, convenient location matters for the people and for
internet banking variety of features matters to the people.
3. In government banks, SBI holds the 3rd position in Kathua when we talk of market share.
J&K bank is at the first place whereas in Udhampur SBI holds the second place.
4. All the users of e-banking of SBI are satisfied with the online banking of SBI.

54
20. SUGGESTIONS AND RECOMMENDATIONS
1. A lot of people want to take personal loan from SBI but because of very high interest
rates they do not apply and find another source for arranging funds. Hence SBI should
lower its interest rates on personal loans.
2. People in Kathua and
Udhampur are very less
aware about the products of
SBI, whatsoever be the
product i.e. car loan, online
a/c application, education loan
etc. Thus awareness programs
must be conducted by SBI time
to time so they people could get
the information about all recent
products.
3. People don’t bother to go any other bank to avail internet banking. They use internet
banking of that bank in which they have their traditional a/c that savings a/c or current
a/c. thus the bank tries to attract customers for primary accounts.
4. Most of the people use e-banking to check about their account and to get information
related to their account. Hence new features should be added so that users can get full and
precise information they need.

55
21. BIBLIOGRAPHY
 http://www.educationobserver.com/forum/showthread.php?tid=11127
 http://www.thehindu.com/multimedia/archive/00116
 http://www.googleimages/sbi
 http://www.wikimapia.org/sbi
 http://www.sbi.co.in
 http://onlinesbi.com

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