CHANGING DEMAND OF PATTERN FOR E-

BANKING SERVICES

Introduction

E-banking has numerous names virtual banking, online banking, and

internet banking. It simply means the use of electronic and telecommunications
networks for delivering colorful banking products and services. E-banking
involves consumers using the internet to pierce their bank accounts and take over
banking deals. At the introductory position, internet banking can mean the setting
up of a web runner by a bank to give information about its products and services.
In an advanced position, it involves the provision of installations similar to
penetrating accounts, transferring finances, and buying fiscal products or services
online. E-banking is banking with the only difference being that all the deals take
place via electronic modes. With numerous inventions in terms of technology, it's
safe to say that this has made life enough accessible for people. With the help of E-
banking, one can fluently do several deals at any time of the day. E-banking covers
installations similar to – fund transfers, checking account statements, mileage bill
payments, the opening of a bank account, locating the nearest ATM, carrying
information on fiscal products and services, applying for loans, etc using a

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particular computer, smartphone, laptop, or particular digital adjunct. E-banking
services in simple terms refer to a banking arrangement, with which the client can
perform colorful deals over the internet, which is end-to-end translated, i.e., it's
fully safe and secure.

E-banking promotes paperless and cashless deals. It comes with several

rights, liabilities, and freights as well. The range of services covered under e-
banking is internet banking - banking installation handed to the guests through
which the guests can perform several financial and non-monetary deals using the
internet through the bank's website or operation. Automated Teller Machine,
popularly known as ATM is one of the most common and original services, handed
under e-banking. It isn't just a machine with which you can withdraw cash as and
when needed, but it also allows you to check your account status, transfer fund,
deposit fund, changes your mobile number, and change your disbenefit Card Leg,
i.e., particular Identification Number. E-banking has got several benefits such as
enabling digital payments which encourages translucency, allowing 24/7 access to
the bank account, sending announcements and cautions to streamline the banking
deals and changes in the rules, lowering sale costs for the banks and making it
accessible and easy for guests so they aren't needed to visit the bank branch every
time.

Review Of Literature

Fadila, Sastrawinata, Badri, Anggoroseto, Ahmad, and Ankus (2016)

conducted a conceptual study on the factors affecting customer adoption of mobile
banking services. The purpose of this study was to determine the effect of
perceived usefulness, perceived ease of use, perceived security, and trust on
customer adoption of mobile banking services. The study showed that perceived
usefulness, perceived ease of use, perceived security, and trust significantly affect
customer adoption of mobile banking services. They suggest that the banks should
build customer trust and communicate the usefulness of mobile banking to the
customer more often and banks should increase customer perception of easy to use
by communicating the way to use mobile banking, making the mobile banking
appearance simple and easier to use.

Salihu and Metin (2017) conducted a study on the impact of services,

assurance, and efficiency on customer satisfaction with electronic banking services
offered by the banking sector. The objective of this study was to look into the
effect of product improvements, reliability, and efficiency on customer satisfaction
with electronic banking services. The primary source to collect the data for their
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research. They observed that the product improvements as a variable, reliability,
and efficiency have a positive effect on customer satisfaction but most of the
customers find it difficult to trust the e-banking services because of security and
safety issues. The results of this study suggest that even though customer
satisfaction and efficiency are highly concerning e-banking, most people do not
believe in the speed of e-banking services and find it risky.

Wang, Cho, and Denton (2017) conducted a conceptual study on the impact
of personalization and compatibility with experience on e-banking. This study
aimed to examine the impact of service personalization on customer reaction to e-
banking services. It also examines one contingent factor which is compatibility
with previous experience with e-banking and the interaction effect of
personalization and technology compatibility on customer e-banking service usage.
The study indicates that personalization leads to increased performance expectancy
and decreased effort expectancy, which in turn leads to increasing intention to
continue using e-banking services.

Charkha and Lanjekar (2018) conducted a study on the performance of

online banking in comparison with traditional banking and its impact on traditional
banking. This study aimed to understand the awareness of e-banking among
college students, to know whether students use e-banking services provided by
banks and whether students believe in the e-banking system. They used both
primary and secondary sources to collect the data for their research. They found
out that internet banking is important for customers as it is convenient and easy to
use when compared to traditional banking which is a time-consuming process.
They also observed that customers consider using new technology over traditional
ones as it makes banking easy and offers better and faster services. They suggested
that even though e-banking has provided numerous facilities to its users, customers
still worry about the security system for which banks must install supporting
software systems like firewalls and increase the ability to control and manage the
risks associated with e-transaction activities.

Sandhu and Arora (2018) conducted a study on usage based upon reasons:
the case of electronic banking services in India. This study aimed to determine the
factors influencing customers' usage of electronic banking services. The scholars
used primary sources to collect the data required to conduct this research. They
observed that e-banking usage is found to be higher among women, more
educated, younger, and middle-income customers. They also found out that among
the eleven perceptual variables studied, only six variables namely: information,
performance, self-interest, service quality, satisfaction, and experience were found
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to be significantly and positively associated with e-banking usage. They suggest
that even though the e-banking services provided by banks may result in higher
customer satisfaction and higher efficiency, several people still find it difficult to
access these services and find these services risky.

Shankar and Jebarajakirthy (2019) conducted a study on the influence of

e-banking service quality on customer loyalty: A moderated mediation approach.
The objective of this study was to empirically investigate a comprehensive
moderated mediated mechanism for enhancing customer loyalty toward e-banking
platforms via e-banking service quality (EBSQ) practices. The data was collected
through a structured questionnaire. The study showed that of the EBSQ
dimensions, reliability along with privacy and security enhanced customer loyalty
to e-banking, and the initial trust in e-banking mediates the effects of EBSQ
dimensions on customer loyalty except for website design. The mediation effects
of initial trust varied between high and low-involved consumers.

Gandhi and Gupta (2020) conducted a descriptive study on e-banking vs

traditional banking in India. The objective of this study was to understand the
various e-banking products and to identify the challenges faced by the e-banking
system. They observed that traditional banks did not grant enough facilities to their
customers as compared to those obtained from online banking services. A
maximum number of users are inclined towards using e-banking because of the
convenience and ease to use it. They suggest that most customers will adopt e-
banking because of its positive impact.

Sandhu and Arora (2020) conducted a conceptual study on customers'

usage behavior of e-banking services: Interplay of electronic banking and
traditional banking. The objective of this study was to investigate customers' usage
of electronic banking services in a multi-channel context as e-banking usage is
found still low, banks have scope for further propagation of technology and
reaping its benefits. They observed that with the inclusion of technology, banks
should not ignore the importance of employees as manual and electronic banking
are found complementary to each other. They suggested that there is still a need to
make electronic banking simpler and more secure as these are the major inhibitors
of complete reliance on electronic media.

Ahmed and Sur (2021) conducted a study on the change in the use pattern
of digital banking services by Indian rural MSMEs during demonetization and
Covid-19 pandemic-related restrictions. The purpose of this study was to find out
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the factors influencing customers' adoption process of digital banking services and
to find out the role of demonetization and pandemic-related restrictions in adopting
DBS by rural MSMEs.

They used primary sources to collect data for their study. They found out that
covid-19 had a major effect on the decision-making process of the owners towards
the use of DBS for their business. The study also points out that the rural MSME
owners understand the benefits of using DBS but are concerned about two
important factors which are: the cost involved to incorporate it and the trust
involved with the use of it, before implementing them in their business. They
suggest that with the boom in e-commerce, this study can help bankers,
government or academicians formulate better strategies to cater to the demands of
businesses, especially rural MSMEs.

Meher, Hawalder, Mohapatra, Spulbar, R. Birau, and Rebegea (2021)

conducted a conceptual study on the impact of digital banking on the growth of
MSMEs in India. The purpose of this study was to formulate multiple regression
models by considering those factors which are positively affecting the growth of
micro, small and medium enterprises in India. This study suggests various
favorable factors of digital banking with significant coefficients which are a level
of easiness in accepting and making payments, level of easiness in managing the
expenditure of business, level of time-saving and level of check on
misappropriation or theft of cash are contributed towards the growth of MSMEs in
India.

We all were interested in studying the economy of India and other countries.
We discussed various topics such as demonetization, G6etc., but then
understanding the importance of banks in the lifeline of Indian economy we chose
E-banking as our topic for futurology project. When we came across various
factors affecting physical as well as E-banking, we decided to finalize our topic.
First we listed various factors related to our topic and segregated them based on
various categories such as Age, Educational qualification etc. After studying about
it ,we understood various factors affecting the E-banking in India and we chose the
topics we would like to work on.

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Overall Structure of the Project

As mentioned earlier we choose 7 main categories to segregate our data. Those

factors were,

1) Mode of transactions for e.g..Cash, Cards, Internet banking etc.

In our subject mode of transactions plays a vital role and for the same reason
we have considered this factor. We have mainly bifurcated this factor into 4 parts

 Cash transactions
 Transactions by Cheque
 Transactions with the use of Plastic Money (i.e. Credit cards, Debit cards, Smart
card)
 Online transactions

2) Services offered in E-banking

This factor is mainly divided into 2 parts

1}Services offered by government like Jan Dhan Yojana
2}Services offered by private companies like PAYTM,Paypal etc.
This factor highly affects the number of E-banking users and for the same reason
we have considered this factor

3) Awareness about E-banking

Many people are not well aware about E-banking and do not know much
about it.Due to ineffective implementation of Govt.policies and some other reasons
E-banking has not reached all the places and hence people are not using it on
greater extent

4) Government policies

As mentioned earlier Gov. Is trying to initiate various schemes like Jan

DhanYojana which is going to make E-banking sector even to the poorest sections
of the society and for the same reason we have chosen this factor.

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5) Technology

Today the Modi government is trying to implement more and more schemes as
well as policies which will help in making Indian economy the Cashless economy.
For these new technological advancements such as Biometric system, eye scanner
etc. This is going to affect the development of E-banking sector on a greater extent.
Therefore we have chosen this as an important factor

6) Volume of transactions-

For studying this topic one of the most important factor to be taken in the
consideration is volume of transactions. Under this factor we have studied number
of transactions as well as amount of transactions (in millions).We wanted to know
how the people are transacting throughout the India and how the number of
transactions will be affected by the wild card decision of Demonetization and for
the same reason we have taken this factor into consideration.

7) Number of users-

As mentioned before the number and amount of transactions is ultimately

dependent upon the number of users. If there are no users of a particular system
that system will not able to sustain for a long time. Thinking similarly about E-
banking sector we have chosen this as an important factor

SURVEY INTRODUCTION

• For case study a survey was conducted from November2016 to December2016

for the project .This survey was done on the basis of 500 respondents from various
sectors.
• Mainly the objective of the research is to understand online banking user’s
behaviors, opinions, preferences and expectations
• Duration of survey- 1-11-16 to 15-12-16

• Target population- Local people of Pune city and surroundings

• Survey method- Direct interview and form filling

• Total no. of respondents- 500

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System Web

Survey Questionnaire E-Banking survey

*name not required*

{E-banking includes ATM, debit or credit cards, online payments, online
transactions, online shopping, paytm and other digital wallets also }
*Please tick on appropriate answer*
1) Do you use e-banking?-Yes /No
(If you are not using e-banking then answer only question no.1, 2, 3, 6, 7
&8)Reason of using e banking instead of normal banking is (1 or 2 lines)-

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SURVEY- DATA ANALYSIS

1) NUMBER OF PEOPLE USING E-BANKING

Here we can observe that according to survey around 68% of the total people
who answered the survey are using e-banking. Today in India (according to RBI
statistics) around 35 % of the population is using E-Banking for daily transactions.
In the near future this number will increase by 50-60%.

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 According to the data the frequency is for 0-3 transactions per week. Out of
every 100 persons nearly 50% do less than 3 online transactions per week. As we
all know DEMONITIZATION is going to change this situation completely. Here
we can see that nearly 12% people are doing on an average 9 and more transactions
per week. According to our prediction in the near future this percentage will
increase by two- folds

3) PREFERENCE FOR USE OF VARIOUS SERVICES

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 The graph clearly tells us that the service used mostly by the people is
Online Payment. People prefer to pay online rather than visiting the place
physically to pay. Nearly 32% people use the service of online payment mostly.
The second most used service is Fund Transfer accounting to about 26%. The third
most used service is ATM Banking accounting to about 22%. There are various
modes by which the funds can be transferred between two accounts, but if we look
at the % of people doing fund transfer by various means like cash , ,Cheque
,Online etc. we can see that from these 22% around 21% do transactions by cash,
38% transact by Cheque and 41% do transactions online.

4) SERVICES TO BE IMPROVED

Here we can clearly observe that the highest percentage of people , that is
33% people want Internet security services to be improved.This clearly indicates
the fact that Official Govt. sites are highly insecure and there is risk of Hacking
and Misuse of confidential data. Today it is surprising to see that our online bank
account, credit card number etc. can be hacked only in 6 seconds. There is an
urgent need to improve these services.
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 Further 18% people want ATM services to be improved. Today more than
30% financial frauds are done by using ATM cards. The ATM card pin can take
few seconds to be hacked. On the other hand only 5% people want Fund transfer
service to be improved. Based on this we can conclude that , according to the
survey , today the most secure service offered in E-banking sector is Fund transfer.

5) REASONS FOR NOT USING E-BANKING

Here are some of the important reasons for which the people are not using
E-banking. We can observe that most percentage of the people are not using E-
banking because they are Not Well Informed about E-banking. Around 30%
people are not aware about, some very basic questions like how to do banking
transactions online? What things we need to do online transactions and many more
basic questions about E-banking

This clearly indicates that there is an urgent need to organize awareness and
information campaigns on E-banking. Secondly around 27% of the people are not
using E-banking because of the inactivated online account. At last we can observe
that around 26% of the people are not using E-banking because of misconceptions
and security reasons. This clearly indicates that there is a need for organizing
information and awareness campaigns on E-banking.
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6) PREFERENCE TO MODES OF TRANSACTIONS

This graph shows the modes of transactions preferred by people. 27%

people have given the first preference to the Online mode of transaction. This is the
highest percentage among other modes but still we can observe that it is very less.
There can be variety of reasons for such a small percentage of people using Online
mode of transaction. Some of these reasons we can see in graph no.5.
Further 25% of people prefer Cheque as a mode of transactions. This is also a
secure mode of transaction. Compared to other modes of transactions online modes
provides us with variety of services.

SWOT ANALYSIS

STRENGTHS

 Transparency and Disclosure practices are available almost everywhere

 E-banking is Facilitating the offering of more services
 Onlineservices and E-banking are Increasing customer satisfaction and loyalty
 Competitive advantage for banks

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As the competition will increase banks will try launching more and more
schemes reaching to the wider public section.
 Reduces the time, cost and effort in the interaction

We will be able to do transactions by sitting at home within a few seconds

which will reduce the time consumed. Infrastructure required for the setup of
online services will be less leading to the effective reduction in cost and efforts
 E-banking provides Permanent access to the bank
 It is a Safe and secure method regarding security issues
 Discounts and offers on Online services are attracting more customers

WEAKNESSES

 Delayed statements of transactions are consuming a little bit of more time and
thus people are thinking it to be more time consuming
 Less awareness about e-banking
 Misconceptions about security reasons are making people use E-banking on a
very small scale
 Low Internet connectivity in rural and some urban areas is preventing people
from accessing online bank websites
 Lack of trust in people. People are not well aware about E-banking and think of
it as a risky method.
 Insufficient penetration of Mobile banking in rural areas
 Infrastructural issues such as building banks and ATM machines in rural areas.
 E-banking services are costly .so, it is not affordable for poor people

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OPPORTUNITIES

 Demonetization-Promoting CASHLESS transactions-demonetization is positive

booster for e-banking. People don’t have any money in hand so; people have no
other option other than online banking. So, people will move towards E-banking
 Promotion of inter-connectivity between banks and customers-Today, BJP
government is promoting e-banking .so, people are getting more information about
E-banking and as a result e-literacy is increasing.
 Increased quality of online services
 Supporting Government policies
 Increasing investment in E-banking sector
 Increased competition among companies in E-banking sector-

This may led to increase in qualities and decreased cost of services provided
in E-banking

THREATS

 Security problems-today ,there are many security threats in online transactions

like- Because of above threats people are not using E-banking because there is fear
in minds of people about online transactions
 Misuse of lost cards-if people don’t deactivate their cards after getting lost, then
other people may misuse it.
 Misuse of confidential data –many times confidential data like phone no.
,password of email address and many other things may leak while performing
online transactions
 Development in E-banking will led to decrease in employment of people in
banking sector .so, it may create a big problem of unemployed people

PREDICTED FUTURE

DEMONITIZATION a wild card decision taken by the Modi Government

proved to an important decision for E-banking sector in India. This introduced us
to the concept of ‘CASHLESS Society', which is mostly based on the concept of E-

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Banking and cashless transactions. In this section we have mainly focused on
predicted future for Credit and Debit cards, Mobile transactions, and NEFT
transactions. We got our required data from official RBI site and tried to predict its
future by figuring out the possible rates at which the usage of this technology will
increase.

Note -

1]All data till January 2016 is collected from official website of Reserve Bank of
India - www.rbi.in

2] The future is predicted by analyzing the graph and rate of change in slope and
also from results of the survey.

3] the term POS means ‘point of sale purchase.’

DATA ANALYSIS AND FUTURE PREDICTION

1) MOBILE TRANSACTIONS-

This graph shows the number of mobile transactions from Dec.11 to Jan.16.
Here during jan.15 to dec.15 we can observe the drastic increase in number of
transactions mainly due to the government change. Modi govt. initiated various
policies and schemes which are helping to boost the number of online transactions.
That is the main reason, according to our predictions this will keep increasing at
the steady rate over next 5 years.

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2)CREDIT CARDS-

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In this graph we can observe 3 lines,

1) The curve line represents how the total number of existing credit cards will
increase exponentially in the near future that is in the next 5 years till January 2021
2) Black dotted line represents the linear growth of the total number of existing
credit cards in the near future that is in the next 5 years till January 2021
3) Similarly red dotted line represents the linear growth that is going to take place
in the number of existing credit cards as a result of ‘demonetization’ in the near
future that is in the next 5 years till January 2021 as a result of ‘demonetization’ in
the near future that is in the next 5 years till January 2021 Here as represented if
we observe the graph carefully, we can observe that the black line is clearly
indicating the linear growth in the total number of existing credit cards in the
upcoming 5 years, with respect to the data from December 2011 to January 2016,
but in reality this is not going to happen due to the wild card decision of
DEMONITIZATION.

Demonetization is promoting the idea of cashless society, which is going to

affect this trend of E-banking on a greater extent. According to black dotted line
the total number of existing credit cards is going to increase 4% per annum but
because of demonetization this can become two fold and according to our
predicted future this will increase by average 6% to 8% per annum.

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In this graph also we can observe 3 lines,

1) The curve line represents how the total number of transactions done by credit
cards at ATM will increase exponentially in the near future that is in the next 5
years till January 2021
2) Black dotted line represents the linear growth of the total number of transactions
done by credit cards at ATM in the near future that is in the next 5 years till
January 2021
3) Similarly red dotted line represents the linear growth that is going to take place
in the total number of transactions done by credit cards at ATM as a result of
DEMONITIZATION in the near future that is in the next 5 years till January 2021

As mentioned above total number of existing credit cards is going to

increase by 6% to 8% per annum, as predicted,from the graph above we can
conclude that according to the black dotted line average annual growth in no of
transactions done by credit cards at ATM is increasing at an average rate of 3.5%
per annum, similar to the situation above due to the wild card decision of
DEMONITIZATION, this increase will be 6% to 7% per annum according to our
prediction. Such a large % increase in total number of credit card transactions is
seen because, according to the RBI data and our survey data, more than 50%
population per 100 persons transact on an average 0 to 3 times per week , but in the
upcoming 2 to 3 years number of these transactions will be more than 9
transactions per week according to our predictions. This is the main reason for why
we are going to witness such a large increase in number of transactions by credit
cards in the near future

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In this graph also we can observe 3 lines,

1) The curve line represents how the total number of transactions done by credit
cards at POS will increase exponentially in the near future that is in the next 5
years till January 2021
2) Black dotted line represents the linear growth of the total number of transactions
done by credit cards at POS in the near future that is in the next 5 years till January
2021
3) Similarly red dotted line represents the linear growth that is going to take place
in the total number of transactions done by credit cards at POS as a result of
DEMONITIZATION in the near future that is in the next 5 years till January 2021

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4) As mentioned above total number of existing credit cards is going to increase by
6% to 8% per annum, as predicted,from the graph above we can conclude that
according to the black dotted line average annual growth in no of transactions done
by credit cards is increasing at an average rate of 10% per annum, similar to the
situation above due to the wild card decision of DEMONITIZATION, this increase
will be 16% to 17% per annum according to our prediction. Such a large %
increase in total number of credit card transactions is seen because, according to
the RBI data and our survey data, more than 50% population per 100 persons
transact on an average 0 to 3 times per week , but in the upcoming 2 to 3 years
number of these transactions will be more than 9 transactions per week according
to our predictions. This is the main reason for why we are going to witness such a
large increase in number of transactions by credit cards at POS in the near future

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In this graph also we can observe 3 lines,

1) The curve line represents how the total amount of transactions done by credit
cards at ATM will increase exponentially in the near future that is in the next 5
years till January 2021
2) Black dotted line represents the linear growth of the total amount of transactions
done by credit cards at ATM in the near future that is in the next 5 years till
January 2021
3) Similarly red dotted line represents the linear growth that is going to take place
in the total amount of transactions done by credit cards at ATM as a result of
DEMONITIZATION in the near future that is in the next 5 years till January 2021

Comparing among the credit and debit cards it is clear that amount of transactions
using Debit card [ATM] is going to be clearly higher than that of the Credit cards
.In this graph at present i.e. January 2016 we can observe that total amount of
transactions is around 800 crores which is going to reach around 1300 crores by
December 2021. This is the drastic increase in amount of transactions by credit
cards is mainly due to the wild card decision of Demonetization. As said earlier the
increase in amount of transactions is going to increase at even higher rates, the
main reason being the less charges applied on debit cards than the credit card.

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In this graph also we can observe 3 lines,

1) The curve line represents how the total amount of transactions done by credit
cards at POS will increase exponentially in the near future that is in the next 5
years till January 2021
2) Black dotted line represents the linear growth of the total amount of transactions
done by credit cards at POS in the near future that is in the next 5 years till January
2021
3) Similarly red dotted line represents the linear growth that is going to take place
in the total amount of transactions done by credit cards at POS as a result of
DEMONITIZATION in the near future that is in the next 5 years till January 2021

Comparing among the credit and debit cards it is clear that amount of transactions
using Debit card [ATM] is going to be clearly higher than that of the Credit cards
.In this graph at present i.e. January 2016 we can observe that total amount of
transactions is around 100 crores which is going to reach around 500 crores by
December 2021.This is the drastic increase in amount of transactions by credit
cards is mainly due to the wild card decision of Demonetization. As said earlier the
increase in amount of transactions is going to increase at even higher rates, the
main reason being the less charges applied on debit cards than the credit card.

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3)DEBIT CARDS-

In this graph we can observe 3 lines,

1) The curve line represents how the total number of existing debit cards will
increase exponentially in the near future that is in the next 5 years till January 2021
2) Black dotted line represents the linear growth of the total number of existing
debit cards in the near future that is in the next 5 years till January 2021

3) Similarly red dotted line represents the linear growth that is going to take place
in the number of existing debit cards as a result of DEMONITIZATION in the near
future that is in the next 5 years till January 2021
Here as represented if we observe the graph carefully, we can observe that the
black line is clearly indicating the linear growth in the total number of existing
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debit cards in the upcoming 5 years, with respect to the data from December 2011
to January 2016, but in reality this is not going to happen due to the wild card
decision of DEMONITIZATION. Demonetization is promoting the idea of
cashless society, which is going to affect this trend of E-banking on a greater
extent. According to black dotted line the total number of existing debit cards is
going to increase 4% per annum but because of demonetization this can become
two fold and according to our predicted future this will increase by average 8% to
9% per annum.

In this graph also we can observe 3 lines,

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1) The curve line represents how the total number of transactions done by debit
cards at ATM will increase exponentially in the near future that is in the next 5
years till January 2021
2) Black dotted line represents the linear growth of the total number of transactions
done by debit cards at ATM in the near future that is in the next 5 years till January
2021
3) Similarly red dotted line represents the linear growth that is going to take place
in the total number of transactions done by debit cards at ATM as a result of
DEMONITIZATION in the near future that is in the next 5 years till January 2021

As mentioned above total number of existing debit cards is going to increase by

6% to 8% per annum, as predicted, from the graph above we can conclude that
according to the black dotted line average annual growth in no of transactions done
by credit cards at ATM is increasing at an average rate of 3.5% per annum, similar
to the situation above due to the wild card decision of DEMONITIZATION, this
increase will be 6% to 7% per annum according to our prediction. Such a large %
increase in total number of debit card transactions is seen because, according to the
RBI data and our survey data, more than 50% population per 100 persons transact
on an average 0 to 3 times per week , but in the upcoming 2 to 3 years number of
these transactions will be more than 9 transactions per week according to our
predictions. This is the main reason for why we are going to witness such a large
increase in number of transactions by debit cards in the near future.

26
In this graph also we can observe 3 lines,

1) The curve line represents how the total number of transactions done by debit
cards at POS will increase exponentially in the near future that is in the next 5
years till January 2021
2) Black dotted line represents the linear growth of the total number of transactions
done by debit cards at POS in the near future that is in the next 5 years till January
2021
3) Similarly red dotted line represents the linear growth that is going to take place
in the total number of transactions done by debit cards at POS as a result of
DEMONITIZATION in the near future that is in the next 5 years till January 2021

As mentioned above total number of existing debit cards is going to increase by

6% to 8% per annum, as predicted, from the graph above we can conclude that
according to the black dotted line average annual growth in no of transactions done
by debit cards is increasing at an average rate of 10% per annum, similar to the
situation above due to the wild card decision of DEMONITIZATION, this increase
will be 16% to 17% per annum according to our prediction. Such a large %
increase in total number of debit card transactions is seen because, according to the
RBI data and our survey data, more than 60% population per 100 persons transact
on an average 0 to 3 times per week, but in the upcoming 2 to 3 years number of
these transactions will be more than 9 transactions per week according to our
predictions. This is the main reason for why we are going to witness such a large
increase in number of transactions by debit cards at POS in the near future.

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In this graph also we can observe 3 lines,

1) The curve line represents how the total amount of transactions done by debit
cards at ATM will increase exponentially in the near future that is in the next 5
years till January 2021
2) Black dotted line represents the linear growth of the total amount of transactions
done by debit cards at ATM in the near future that is in the next 5 years till January
2021
3) Similarly red dotted line represents the linear growth that is going to take place
in the total amount of transactions done by debit cards at ATM as a result of
DEMONITIZATION in the near future that is in the next 5 years till January 2021

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Comparing among the credit and debit cards it is clear that amount of transactions
using Debit card [ATM] is going to be clearly higher than that of the debit cards .In
this graph at present i.e. January 2016 we can observe that total amount of
transactions is around 210 crores which is going to reach around 450 crores by
December 2021.This is the drastic increase in amount of transactions by debit
cards is mainly due to the wild card decision of Demonetization. As said earlier the
increase in amount of transactions of debit cards is going to increase at even higher
rates, the main reason being the less charges applied on debit cards than the credit
card.

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In this graph also we can observe 3 lines,

1) The curve line represents how the total amount of transactions done by debit
cards at POS will increase exponentially in the near future that is in the next 5
years till January 2021
2) Black dotted line represents the linear growth of the total amount of transactions
done by debit cards at POS in the near future that is in the next 5 years till January
2021

3) Similarly red dotted line represents the linear growth that is going to take place
in the total amount of transactions done by debit cards at POS as a result of
DEMONITIZATION in the near future that is in the next 5 years till January 2021
Comparing among the credit and debit cards it is clear that amount of transactions
using Debit card [ATM] is going to be clearly higher than that of the Credit cards
.In this graph at present i.e. January 2016 we can observe that total amount of
transactions is around 150 crores which is going to reach around 570 crores by
December 2021.This is the drastic increase in amount of transactions by debit
cards is mainly due to the wild card decision of Demonetization. As said earlier the
increase in amount of transactions is going to increase at even higher rates, the
main reason being the less charges applied on debit cards than the credit card.

30
 This graph shows the total number of transactions at the national level where
the money was deposited by the people in their bank account. The duration of this
graph is from Jan.09 to Jan.21. We can observe the gradual increase in the number
as well amount of transactions during the last 12 years At present i.e. Jan.16 total
amount of is 100 crores and is gradually going to increase to more than from
350crores.While the number of transactions is going to increase from 20 crores to
70 crores

31
 This graph shows the total number of transactions at the national level
where the money was deposited by the people from withdrawal their bank account.
The duration of this graph is from Jan.09 to Jan.21. We can observe the gradual
increase in the number as well amount of transactions during the last 12 years at
present i.e. Jan.16 total amount of is 40 crores and is gradually going to increase to
more than 90 crores. While the number of transactions is going to increase from
125 crores to around 670 crores.

PREDICTED FUTURE

This is the future which we think will happen in India with current economic
growth and infrastructure development.

Phase-I (2016-2021)

1)By 2021 around 50% people will be using E-banking

2)Around 60% of the hotels, street shops and other institutions will be installed
with various payment methods like virtual,online,plastic money, biometric system
etc.

3)New services like Paytm, Bhim app etc will be introduced in the near future i.e.
in 2018-2019

4)Looking on a broad basis more than 55% of the people in Maharashtra will be
Digitally Literate

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5)Popular and the most used modes of transactions in the upcoming 5 years will be
• Online
• Cheque
• Plastic money

6)Government policies and schemes will start reaching the rural areas

7)SHGs will help people in villages in being digitally literate and will promote the
concept of CASHLESS SOCIETY in that village

8)More ATMs and swipe machines will be installed in most of the villages

Phase-II(2021-2026)

1) More than 65% of the population will be using E-banking and Online mode of
transactions and this percentage will keep growing steadily. By 2030 more than
70% of the population will be using E-banking
2) People will be doing more than 80% of the transactions through mobile banking
or net banking
3) Government will mainly focus on making India a cashless country and thus
Government will keep launching various schemes and policies will even reach to
smallest villages
4) Plastic money users i.e. Credit card users, Debit card users, Smart card users
will keep growing at a steady rate of 4%-5% per annum
5) The mobile banking penetration in India, currently being around 50%, will
increase to 60%-65%

6) New ways of transactions such as transacting by biometric or eye scanning, will

be commonly used everywhere. This will also reach to the poorest sections of the
society and will help in making them Digitally Literate

DESIRABLE FUTURE

This is the ideal future which we think is essential to make India a superpower till
2030. But , for this ideal future , we need stable government , people’s support and
good implementation of government policies till the root levels of India.

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Phase 1-2016-2021

Infrastructure Development
• Everyone will be connected through bank accounts through various governmental
schemes.so; everyone will be a part of formal banking system. This will help
government to spread awareness about E-banking among people
• Services of online banking will be provided everywhere and anytime .This will
help people to overcome their problems related E-banking.
• Internet connectivity all over India at reasonable rate. This will help to increase
efficiency of E-banking.
• Sufficient energy resources will be available for electricity generation and supply.
Electricity is one of the most important resource required for E-banking .so, if
there is 24/7 supply of electricity ,then there will be no problem in performing
online transactions Services and awareness
• User- Friendly Services will be available on monthly/annual basis.
• All services will be available everywhere, anytime and quick.
• With the help of self-help groups, NGOs and government officers the awareness
will be spread all over India ,included rural and remote areas
• Digital literacy in India will be 85-90%

Uses

 85% people will be Dependent On E-Banking

 All services(included both government and private) will be available online.
 Following services and many more services will available online-

 Payment of school fees

 Recharge of internet, set top box and phone
 All taxes
 Shopping
 salaries
 All government payments will be paid online

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Cash payments-limitation of 3000 RS There will be limitations on cash
payments so that you are not allowed to pay more than 3000 RS with cash per
month
 Most preferable mode of transfer will be-

1)online
2)UPI and BHIM
3)plastic money

Phase 2-2021-2026

We have proposed new mode of transaction which will work as an ideal mode
of transaction for Indian economy-B.V.M.T.

B.V.M.T.- Biometric verification and money transfer

What will you need to use this system?

• You need only aadhar card so that government will create biometric password for
each person.
• You need nothing other than aadhar card and bank account in any bank in this
system.

How will it works?

Suppose, you went to the restaurant and you have to pay 1435 RS, Only thing
you need to do is-Just scan your finger on biometric scanner. Money will be
transferred from your account to hotel manager’s account immediately, within few
seconds, payment will be done. No need to carry any cash and cards, No need of
internet. Because your thumb will be your bank.

How it will overcomes security threats of other mode of transactions?

1) Misuse of lost cards and money-

In B.V.M.T., there will be no need of anything to carry, because your thumb will
be your bank.

2) Hacking of online account-

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B.V.M.T is completely offline mode of transfer and all servers of this network will
be under govt. control so, there will be least probability of hacking.

3) Copying of finger print and misuse of it –

There will be system in which scanner will sense your sweat on your finger tip
which is non-identical for everyone so, even if someone copied your finger print
,then also he can’t misuse it.
Other advantages

1) Eco-friendly mode-no use of paper .so, totally pollution free mode of

transactions. This will help in the conservation of trees and will provide other
environmental benefits also.

2) This system will be under government's control so, all profit will be of
government, and As a result wealth drain will stop. FDIs in India along with the
wealth generation at the local level will help the government for providing better
facilities.

Desirable future

• Internet access –everywhere almost free. Everyone will be able to access the bank
websites and get the required information
• All services will be quick ,user-friendly and efficient
• Cards or cash: B.V.M.T. Plastic money and cash transactions will be almost
negligible and will gradually decrease to 0%.People will prefer using B.V.M.T
instead of cash transactions as it will be easier and accessible to all including rural
areas.
• 99% of transactions will be done by using E-banking. Cash transactions will be
almost negligible
• From pan shop to hospital, everywhere transactions B.V.M.T will be available
• Internet Servers will more efficient and can operate at very high speeds without
any interruptions which will ultimately help in reducing time consumption and
human labour.
• Transactions more than 1lakh will done with triple security-password ,onetime
code ,B.V.M.T

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• Transactions more than 10000 will done with Double security-B.V.M.T and
onetime code

ACTION PLANS

These are the actions which people of India and Government should take to
achieve the goal of desirable future,
Infrastructure development

• Deepening of banking system- with the help of self-help groups (SHGs) and
NGOs, Everyone should be connected to formal Indian banking system.
Every person in rural India will be connected to formal Indian banking system.
This will help to promote e-banking in remote areas.

• Having bank account must be compulsory for everyone.

• Swipe machines should be installed in all remote and rural areas.
• Every person in India will get e-banking facilities anywhere, anytime allover
India.
• Setting internet towers and providing internet facilities all over India .This will
help to increase efficiency of online money transactions. This will decrease
interruptions and problems while performing online transactions.
• Self-sustainable energy source should be created and provided 24/7.sufficient
electricity supply will help to improve quality of services offered.
• Better implementation of government schemes.

Services and awareness

• Quick and more user friendly services should introduce and developed by the
Indian Government and private companies.
• This will led to increased customer satisfaction and decrease customer problems.
• The government should try to improve economic relations of India with other
countries in order to promote and provide new technological services. This will
help to increase quality of services offered.
• Digital literacy campaigns should be promoted and organizes in the rural areas.
This will led to increase in no. of e-banking users.

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• This will reduce misconceptions in minds of people
USE
• Government should focus on promoting cashless transactions and restricting cash
transactions
• Government payments like taxes should be made online
• We should try to promote the concept of Cashless Society in the nearby areas

Need of Study

This research will be helpful to the banks and policymakers to encourage

digital banking in urban as well as rural areas by stressing the significance and the
favorable factors that support the secure and timely transfer of funds as well as
real-time tracking of these transactions. The study could give new insight into the
extent of the contribution of digital banking towards the growth of MSMEs in rural
and semi-urban areas.

Objectives

 To study the impact of e-banking over traditional banking.

 Tostudy the usage and convenience of e-banking.
 To study the needs of customers and ultimate customer satisfaction.
 To study the growth of micro, small and medium enterprises (MSMEs) after the
implementation of digital banking.
 To study the feasibility of the digital banking system.

Conceptual explanation

Science has made the world more dynamic and progressive. It has brought
changes in frugality, politics, culture, society, and people. In the finance and
banking sector, this change is considered more tremendous because the use of
computers in banking assured fine delicacy and promptitude. It has made banking
deals more speedy, easy, and comfortable. moment, the client doesn't have to carry
a checkbook or cash, rather it's enough for him to just carry a plastic card. But the
spread of electronic banking in our country is veritably limited. Generally
speaking, electronic banking systems are electronic systems where the deals and
connections between the bank and guests grow through electronic bias rather than

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paper documents. In other words, e-banking is a kind of banking in which the bank
uses electronic satellite-grounded motorized bias for icing promptitude and
delicacy in banking deals. E-banking makes it easy and doable for banks and their
customers to:
 Deposit and withdraw money automatically;
 To transfer money electronically from one bank to another promptly;

There are colorful services piecemeal from the ones listed that e-banking can
give to their customers. These services are divided into two main types – retail
electronic banking and non-commercial electronic banking. Retail electronic
banking is particular banking that provides financial services to individuals and can
include similar services as ATMs, credit, and disbenefit card operations, point of
trade, check deals, retail automated clearinghouses, and others. Non-commercial
electronic banking services are handed to large clients like banks, pots, fiscal
institutions, and others. With non-commercial banking, these associations can
manage their cash, perform line transfers, fulfill commercial automated
clearinghouses, and others.

Conclusion

Online banking is a convenient technology that works for both – banks and
their customers. While banks can keep their customer flow at the level of pre-
pandemic times, bank clients get convenient access to all the banking services
without the need to visit brick-and-mortar facilities. Electronic banking is changing
the way in which people carry out their banking activities. Now, having their
business app with online banking functionality is already a must for banks and
financial institutions and we expect that its popularity will only grow in the future.
However, there exist numerous factors that influence the intention of an individual
to agree on technology.

Among these factors, the most important are security and trust. E-banking
offers a higher level of convenience for managing one’s finances. However, it
continues to present challenges to financial security and personal privacy. Many
people have had their account details compromised, as a result of online banking.
Thus, if one is going to use it for financial transactions, he should be aware of the
risks involved. Awareness of the risks and problems enables him to take
precautions for a more secure online banking experience. The e-banking system is
not only popular nationally, but also internationally, where a person can transfer

39
money from any part of the world. The e-banking system is useful for bankers as
well as customers of banks.

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