RIT, Rajaramnagar (An Autonomous Institute affiliated to SUK)

SUMMER INTERNSHIP PROJECT (SIP)

A Project Report
On
“STUDY OF ROLE OF IT IN BANKING
SERVICE”
Special Reference to

HDFC Bank
For the award of Impartial Fulfilment Degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted By
Miss. Snehal Amrutrao Inamdar
(Enrolment No. – 1940025)

Under the guidance of

Dr. Mrs. Seema S.
Desai (MBA; PhD)

Submitted to

Department of Management Studies (MBA)

Rajarambapu Institute of Technology
(An Autonomous Institute affiliated to Shivaji University, Kolhapur)

Academic Year
2020 – 2021

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CERTIFICATE

This is to certify that the project report entitled

“STUDY OF ROLE OF IT IN BANKING SERVICE”

Special Reference to
“HDFC Bank”
Submitted By
Miss. Snehal Amrutrao Inamdar
(Enrolment No. – 1940025)

In the partial fulfillment of Post-Graduation Degree of

MASTER OF BUSINESS ADMINISTRATION
Under Guidance of

Dr. Mrs. Seema S. Desai

(MBA; PhD)
This project is submitted through the Director, Rajarambapu Institute of Technology,
Rajaramnagar during the academic year 2020 - 2021.
Through,

Director
Rajarambapu Institute of Technology,
Rajaramnagar, (Sakharale), Dist. – Sangli

Date: -: / /
Place: -

H.O.D Director
Dept. of Mgt. Studies (MBA) Rajarambapu Institute of Technology

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GUIDE CERTIFICATE

This is to certify that the internship under Summer Internship & Project (SIP)
completed Internshala Course is the bona fide work submitted by the following
student, to the Rajarambapu Institute of Technology, Rajaramnagar during the
academic year 2020 - 2021, in partial fulfillment for the award of the degree of
Master in Business Administration under our supervision. This project is carried
out under my guidance & supervision. To the best of my knowledge and belief,
the contents of this report, in full or in parts, have not been submitted to any other
Institution or University for the award of any degree.

Name of Student Roll Number

Miss. Snehal Amrutrao Inamdar 1940025

Date: - : / /
Place: -

Dr. Mrs. Seema S. Desai

(MBA; PhD)
(Project Guide)

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CERTIFICATE

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DECLARATION

I declare that this report reflects my thoughts about the subject in my own words. I have sufficiently
cited and referenced the original sources, referred or considered in this work. I have not submitted the
same work for the award of any other degree. I also declare that, I have adhered to all principles of
academic honesty and integrity and have not misrepresented or fabricated or falsified any idea / data /
fact / source in my submission. I understand that any violation of the above will be cause for
disciplinary action by the Institute.

Sr. No Student Name Roll No Signature

Miss. Snehal Amrutrao

1. 1940025
Inamdar

Date:
Place: RIT, Rajaramnagar

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ACKNOWLEDGEMENT

I would like to take this opportunity to express my sincere gratitude and deep regards to my mentor Dr.
Mrs. S.S. Desai, for her guidance during my market research on “Study of Role of IT in banking
Services” With Special Reference to HDFC Bank Her constant guidance, valuable feedback and
morale boosting throughout this project, made it successful. Her suggestions have added immense
value to this research and has been the guiding points for the entire duration of this research work. To
be able to work under the exemplary guidance of Mrs. S. S. Desai has been a wonderful &
knowledgeable experience to my learning.
I would also like to express my heartfelt gratitude towards my friends, family, faculties and the
respondents for their support. Each and every one, has made a significant contribution without which,
this research work would be incomplete.

Date: / /

Place

Inamdar Snehal Amrutrao

( 1940025 )

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INDEX

Chapter Page
Name of The Chapter
No. No.

First Pages
 Title Page
 Authorization Certificate from Institute
  Certificate from Company / Organization
 Authorization Certificate from Guides
 Declaration by the Student
 Acknowledgements

Introduction of the Study

1.1 Introduction
1.2 Company Profile
1.3 Objectives of the Study
I
1.4 Importance and Significance of the Study
1.5 Scope of Study
1.6 Hypothesis
1.7 Conceptual framework

II Literature Review
2.1 Literature Review

Research Design
3.1 Research Design
III 3.2 Sources of data collection
3.3 Sampling Design, Sampling Technique / Procedure
3.4 Method of processing the data collected

Data Presentation, Analysis and Interpretation

4.1 Data Presentation and Analysis
IV 4.2 Hypothesis Testing

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Findings, Suggestions and Conclusion

5.1 Observations & Findings
V 5.2 Suggestions
5.3 Conclusion

- References / Bibliography

- Approved & Signed copy of the Synopsis

Appendices & Annexures

 Questionnaire
-
 Weekly report
 Plagiarism Report (First 5 & Last 5 pages)

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CHAPTER NO. – I. INTRODUCTION

1.1 INTRODUCTION TO THE STUDY: -

The project was undertaken in “HDFC Bank , Branch- Vita” . The study was made to know “Role of
IT” at HDFC Bank, Branch-Vita.

The Indian Banking Sector with the progress in Technology is facing the biggest challenged of rapidly
changing customer expectation against the backdrop of LPG. The Private and MNC banks brought
new technologies .Banks are continuously encouraging investment in information technology. There
were a series of technological innovations and up-gradation, e.g., ATM s, Internet Banking, Credit
Card and Online Banking .
The purpose of this study is to examine the relationship between new technology implementation in
banking and customers. How they are aware about the technologies and how they use it. Banking
environment has become highly competitive today. To be able to survive and grow in the changing
market environment banks are going for the latest technologies.
Technology is helping the Banks to cater to customer needs in a much more efficient manner
continuous and error free services to customers. With help of computerization and the use of modern
software, which can be called the gift of technology. Information technology has basically been used
under different avenues in banking.
Information technology has changed the contours of 3 major functions being performed by the banks
i,e. access to liquidity, transformation of asset and then monitoring of risks. Information technology
and communication networking system have a vital bearing on the efficiency of money, capital and
foreign exchange markets.
In other words electronic banking has modified the traditional risks and benefits associated with
banking. Risks in general can be characterized as strategic, operational, legal and reputational, so it is
to be said that it has increased the overall risk profile of banks.
When private and MNC banks initiated the world class service to their customers and started snatching
customers from Public Sector Banks, Public sectors banks were bound to follow the path of Private
Banks. The PSU banks felt the heat and realized their mistake. They also followed the Private Banks
in their technology initiatives and services.
The Indian Banking Sector with the progress in Technology is facing the biggest challenged of rapidly
changing customer expectations against the backdrop of LPG (Localization, Privatization and
Globalization). Retail banking clients today demand more care and extra facilities. They want more
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mobility of investments, interactive accounts, and better segmentation of banking products to cater to
different segmental needs, convenience and untimely hour services.
Technology is helping the Indian Banks to cater to customer needs in a much more efficient manner
continuous and error free services to customers. With the help of computerization and the use of
modem software, which can be called the gift of technology, the banks have been able to provide
single window system to their customers. In a single window system, all the needs of the customers
are taken care at a single counter. It is like a multipurpose counter where one can deposit cheque,
receive payments and deposit cash etc.

1.2 COMPANY PROFILE

HDFC Bank provides a wide range of best-in-class banking services from saving accounts. Loans,
credit cards to insurance, mutual funds and investment services. We are Indias No.1 Bank. We operate
across India, in 2,672 cities/towns. Our network is constantly growing, and currently has 4,734
branches and 12,333 ATMs. We are the only Indian bank whose market capitalisation is over Rs 5
trillion rupees. HDFC bank has been named India s most valuable brand for 4 consecutive years with
an estimated brand value of $17.9 billion, nearly doubling form $9.4 billion.

Vision: To become the market leader in Housing Development Finance in Srilanka

Mission: To our customers, our mission is to provide a caring service by anticipating their
requirements and innovatively satisfying them beyond their expectations. To our shareholders, our
mission is to optimize returns.

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PRODUCTS OF THE BANK

HDFC bank caters to the banking requirements of every individual by offering a host of products and
services. The following products and services are offered by the bank under its retail banking solutions:

ACCOUNTS AND DEPOSITS

HDFC bank offers a range of accounts and deposit accounts to meet its customer requirements. All
types of accounts are available with the HDFC bank, be it a simple saving account or a current account,
a fixed deposit account or a recurring deposit account.

LOANS

HDFC bank is the leading player in the home loan sector and also offers various needs of the
individuals. The following types of loans are available with the bank: Personal loan, Auto loan, Gold
loan ,Business loan, Loan against asset, Home loan, Education loan, Consumer durable loan, Car
loans, Two wheeler loans, Loan for professionals Loan against security, Rural loans, Loan on credit
cards

CREDIT CARD

The bank has a wide range of credit cards for customers which promise special offers and privileges
on dining, movies, lounge, access of airport, etc. The card also offers reward points on every spending
made by the cardholder which can be redeemed for attractive offers. The various credit cards which
the bank has in for its customers are: Money Back, Jet Privilege HDFC bank signature, Platinum
Times Card, Diners club black .Credit cards offer a host of benefits and are extremely handy. They are
universally accepted and facilitate cashless transactions across millions of merchant location across the
world. The customer can use the credit card for e-shopping and making online bill payments.

DEBIT CARD

The bank offers a Debit card with every saving account to its customers which are safer than carrying
cash because they require a PIN every time they are used, provide great discount and cash back on fuel,
shopping, dining, entertainment, etc. and are used across almost all outlets for payments. Various
Debit cards which the bank offers at present are: Times Point Debit Card, Easy Shop Platinum Debit
Card, JetPrivilege HDFC Bank Signature Debit Card, HDFC Bank Rewards Debit Card, Easyshop
Titanium Debit Card
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FOREX CARD

HDFC Bank prepaid ForexPlus Cards offer a safe, easy, and cashless way to carry foreign currency
when its customers travel abroad – ensuring that you are not inconvenienced on foreign shores. They
are safer than cash, easier to use than traveller’s cheques, and cheaper to use than credit or debit
cards.Various FOREX Cards offered by the Bank are: Multicurrency Forex Plus Card, Hajj Umrah
Card, ISIC student Forex Plus Card, Regalia Forex Plus Card.

1.3 OBJECTIVES OF THE STUDY:-

1 To study the role of Information technology in banking services.

2 To study about the preference of electronic payment system.

3 To study the effect of information technology on the operation of banks.

1.4 IMPORTANCE AND SIGNIFICANCE OF THE STUDY:-

1. The study covers the services offered by banks to the customers by the use of technology.

2. This study helpful to understand how technology used in banks.

3. This study helpful to analysis of banking innovation after computerisation of banks.

4. This study helpful to identify the challenges in the implementation of I.T.

1.5 SCOPE OF THE STUDY

1. This study is concerned with the role of information technology In HDFC bank.

2. This work aims at finding out various usages and impact of computer technology or IT in banking
services.

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3. The study covers the services offered by banks to the customers by the use of technology. More
specifically latest technological delivery channels, namely ATM/debit card, credit card, Internet
Banking, Mobile Banking.

1.6 HYPOTHESIS:-

Null hypothesis (H0): The use of information technology does not have significant effect on the
operation of banks.

Alternative hypothesis (H1): The use of information technology has significant effect on the
operation of banks

1.6.1 Hypothesis Testing: -

Sr. No Factors No.of Respondents Percentage

1 Decrease the work 38 70.4%

2 Better service 46 85.2%

3 More Advanced 49 90.6%

In the above this table we can observed that IT in banks to some extend the reduces the work of
employees. So majority of people says that I.T. in banks much more advanced than traditional
banking.Hence we can say that the bank is making its presence felt due to its quick services. So get
final conclusion the Alternative Hypothesis are correct of this research

1.7 CONCEPTUAL FRAMEWORK

Banking services No doubt that today’s banking business environment has become dynamic and has
undergone rapid changes because of the introduction and up gradation of technological tools.

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Concept of ICT

ICT is a combination of computer technology and telecommunication technology. 21st Century is

directly controlled by multiple communication channels like verbal communication, writing, audio-
visual and electronic media. Communication and technology are widely used in all aspects of life and
increasingly applied to all the sectors of the economy

E-Payment Services in Banks

I. Real Time Gross Settlement

RTGS helps customers to transfer their funds from one Bank to another Bank. It is operated and
managed by the Reserve Bank of India. With this E-Channel a Bank can transfer funds fast and reach
the beneficiary within two hours. The only core banking solution enables Banks to go to these
facilities. It is an online system for quick transactions settlement in the Banking field

II. National Electronic Fund Transfer

NEFT facilitates individuals, firms and comparators to transfer funds electronically from any branch
to another account. RBI has introduced NEFT in 2005. There is no minimum or maximum limit on
transferring funds before sending money. Customers should give accurate and essential details of the
receiver’s name, account, number, branch etc.

III. Electronic Clearing Service ECS helps to transfer funds from one Bank to another.

This service facilitates credit and debit transactions directly linked to customer's account. Through
ECS customers can pay electronically, such as Bills like mobile bills, telephone bills and other utility
bills. It helps customers to avoid late payments and multiple cheques.

IV. Magnetic Ink Character Recognition

MICR facilitates the faster process of cheque clearing. Traditional way of cheque clearing method was
delaying the cheque clearing transactions. With MICR method cheque collection and clearing can be
done at a faster rate. MICR cheque leaves have (8x3 2/3) standardized size. Bank branch code and
account type are printed on this. Magnetic Ink character recognition is used on cheques and deposit
slips. It detects those characters and converts them into digital data.

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ATM service

ATM is also noted as Automated Teller Machine or Automatic Teller Machine and it is also simply
said in commoners’ language as any time money. It is an electronic communication device installed in
the premises of a particular or established outside the area of the Bank to help customers to do their
transactions without the need of Bank staff. Customers have to insert card with magnetic strip which
contains their Bank’s information and enter the PIN code to perform financial transactions.

II. Email, Voicemail and SMS alerts

The customers are provided with E-mail option. Banks send mails regarding passbook statements and
E-Banking services. Customers can also contact managers when they face security and transaction
related aspects. Customers with a touch tone phone can directly call concerned department. The
automatic Voice recorder is used for queries if the call is not answered. Customers can leave a
message to them. This is called Voice mail service.

III. Mobile Banking

RBI issued guidelines for Banks to start mobile Banking transaction in 2008. Mobile Banking
technology is a system that allows customers who have smart phones to perform their Banking
transaction. It includes

a. Checking Bank statements

b. Monitoring term deposits

c. Accessing to mutual fund and Equity statements

d. Accessing to loan statements

e. Transferring funds

f. Paying bills, etc.

IV. Internet Banking

Internet Banking is a convenient E-Banking service provided by the Banks to their customers. With
this service, customers can do Banking transaction anywhere or at home or office. Internet Banking
service provides the following services

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To check account information

To open fixed deposits

To recharge prepaid mobile or DTH

CHAPTER NO. II: REVIEW OF LITERATURE

1. A study of role of technology in banking sector By : Aswin Raj, Mr. Bala

Nageshwara Rao Published Date: Oct 2018

The study covers the services offered by banks to the customer by the use of technology. More
specifically latest technological delivery channels, namely ATM/debit card, Credit card, internet
banking mobile banking etc. Technology today has become integral to the business of banking it is
difficult to envision one without the other. To achieve this difficult task of satisfying the customers,
the banks area unit turning towards the technology for the assistance. Technology has been one among
the foremost necessary factors for the event of human beings. Arora (2003) created an effort to prove
that technology had a definitive role in facilitating transactions within the banking sector

2. The Role of Information Technology on the Banking Industry By: Chiţiga

Georgiana, Scientific researcher Published Date: January 2011

According to Roger W. Ferguson, Vice Chairman, the Federal Reserve Board, there are three reasons
why financial institutions have been and still are heavily investing in technology. First, financial
institutions anticipate a reduction in operating costs through such efficiencies such as streamlining
back-office processing and the elimination of error-prone manual input of data. Second, institutions
find ways to serve their current customers and attract new customers by offering new products and
services and at the same time enhancing the convenience and value of existing products and services.

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3. Impact of Information Technology on Indian Banking Services Prof.

H.K.Singh:

The study by Awasthi & Sharma shows that advances in technology are set to change the face of the
banking business. Technology has transformed the delivery channels by banks in retail banking. Janki
analyzed that how technology is affecting the employee’s productivity. There is no doubt technology
has changed the operating efficiency and customer services. The focus on technology will increase
new products, strengthen risk management etc. The study concluded that Technology is the only tool
to achieve their goals. The review of literature cconcludes that transformation is taking place and IT is
playing vital role in bringing this transformation.

4. Role of Information Technology in the development of Banking Sector in India

Megha Jain ,Prof. (Dr.) G.S. Popli

This paper talks about the role of banking sector in the development of Indian Economy. So banks
need to optionally leverage technology to increase penetration, improve their productivity and
efficiency, deliver cost-effective products and services, provide faster. Efficient and convenient
customer service and thereby, contribute to overall growth and development of the country. It
highlights that technology allows transactions to take place faster and offer unparalleled convenience
through various delivery channels. This paper also talks about various technologies like MICR,
Cheque transaction system, RTGS, NEFT etc.

5. Information technology in the banking sector By: Nadire Cavus August 2015

This paper has concluded that the banking sector is now using new technologies to provide better
services to customers. The banking sector realizes that customers’ needs have changed with the
advancements in technology and their own needs. IT has allowed for improved banking products,
competitive markets, implementation of consistent methods for control of threats and has aided
mobile banking services to reach geographic distance and varied markets. Extensive work needs to be
done in the acceptance of IT in the banking sector so that the risks are eradicated. Customers need to
be informed on suitable precautionary measures for safety.

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6. KPMG, “Technology enabled transformation in Banking”, The Economic

Times Banking Technology , Conclave 2011:

The article has concluded that Information technology in banking is fast evolving. From enabling
banking services to driving transformation in the industry, Information technology holds a promise to
change the face of banking in the next few years. New entrants are looking to leverage their existing
strengths in the Indian banking arena. The opportunity available to these entrants through leveraging
their understanding of technologies and markets they operate in, promises innovative business models
with a focus on delivering customer value.

7. IT plays a vital role in banking sector: future Banking Services. By :pappu

Rajan, D. Allen Rose Shamini November 2018

This article explained about hoe internet banking very useful and become popular. The paper explored
the internet banking usability and various internet applications used by people through perceptional
survey. The implementation of the internet in banking sector has modernized the banks services.
Implementing the internet banking approach has benefited the both that is consumers as well as banks.
Considering this benefits the bank all over the globe have implementing the internet banking and
banking organizations in India are no exception. Bank should provide services to the customers by
several distribution channels through online. The study conclude that all banking service delivery
channels are almost known by customers and in use among the people in India.

8. Role of Information & Communication Technology in Developing the Banking

Sector of India. By: Smt Paramita Chatterjee Feb 2018

Information Technology facilitates wide speedy services to banking sectors. Private and Foreign banks
use more Information Technology related banking services then public sector banks. Reliable infra-
structure of technology is the constraint in implementing Information Technology in banks. Impact of
technology on efficient low cost data communications is same across all banks. There is a strong
association between More IT related services and customer preferring a bank. Security concerns are
the basic hindrance in using Technology related to banking services.

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9. Internet Banking By: Mugdha.Y.Keskar & Neeraj Pande, 29 May 2018

This paper presents an exhaustive review of literature on the current developments in internet banking.
It provides an overview of the changes as well as the ongoing research on internet banking. To
identify relevant works, research databases were searched using 11 keywords. The selected articles
were further refined on the basis of country of origin, journal type, and research methods used for data
analysis. Finally, 51 papers were selected on the basis of specific inclusion criteria for further analysis.
These papers were grouped by research themes, and customer satisfaction with internet banking was
identified as the most common theme.

10. Influence of technology on the performance of indian banking sector.

By:Mihail Nikolaevich Dudin Published Date: 2017

Banking system plays a very important role in the Indian economy. It is like a central nerve to a
nation’s economy as it caters to the financial needs of credit in all the domains of the society. The
growth and advancements in technology has led to a paradigm shift in the entire banking operations
and systems. Further the development of e-banking created a massive change in terms of fulfilling
customers’ divergent needs. The two fold objectives of current budget, namely, demonetization and
GST, purely depend on digital banking. The present study explores the influence of technology in
banking sector among customers by reviewing the relevant literature from the earlier studies.

CHAPTER NO. III: RESEARCH DESIGN

A research design is a arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure. In fact, the research
design is the conceptual structure within which research is conducted. This research was descriptive in
nature.

RESARCH METHODOLOGY:-

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1) Primary Data:-

Primary data is the data which is collected for the first time from the source and never have been used
earlier. In this project, an appropriate questionnaire was designed which was answered by the
employees and customers of HDFC bank to know role of IT in the bank

2) Secondary Data:-

The secondary data collected from different journals, Magazines, websites and published data from different
public sector banks. Various studies on this subject have also been referred in this study.

Sample Design:-

A sample of minimum respondents was selected from various areas of vita city. An effort was made to
select respondent evenly. The survey was carried out on 54 respondents. out of 100

Sample Technique: Simple Random Sampling

Sample unit

In this project sampling unit consisted of the various individuals who had their bank account with
HDFC bank i,e customers and employees of the bank in Vita City

Tools for the study

The analysis of the data collected through research been done systematically. simple percentage, pie
chart and tables where used to represent variety of data that falls into various categories. the analysis
has been done systematically and accurately.

CHAPTER NO. IV: DATA PRESENTATION, ANALYSIS AND

INTERPRETATION.

The survey is conducted in vita city and sample size is 54 respondents data collected by
Questionnair

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4.1 Why do you choose HDFC as your digital banking option?

Digital Banking Option No. of Respondents Percentage of Respondents

Faster Service 24 45.3%

User Friendly 17 32.1%
Brand Name 9 15.1%
Period of Attachment 4 7.5%
Total 54 100%

Graphical Representation:

Interpretation:

From the above graph and table it is observed that 45.3% are of the opinion that the bank provide fast
service in comparison to other banks, 32.1% said that it was user friendly, 15.1% selected it for its
brand name, and 7.5% selected the bank because they were connected to the bank for a long period.
Hence we can say that the bank is making its presence felt due to its quick services.

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4.2 How frequently do you use digital banking ?

Use of digital Banking No. of Respondents Percentage of Respondents

Daily 15 28.3%
Weekly 18 34%
Monthly 19 34%
Once in Year 0 0
Never 2 3.7%
Total 54 100%

Graphical Representation:

Interpretation:

The analysis was made based upon the use of digital banking, and it was found that 34% of the people
were using the digital facility of the bank on a weekly basis, 28.3% on a daily basis ,34% on a
monthly basis, 0% were using it for once in a year, and 3.7% of them were such that were never been
in touch of the digital banking. Conclusion was made that HDFC bank has been successful to a great
extent in adding more and more customers to its digital services.

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4.3 I.T. in banks much more advanced than traditional banking?

Scale No. of Respondents Percentage of Respondents

Agree 49 90.6%

Disagree 1 1.9%

Neutral 4 7.5%

Total 54 100%

Graphical Representation:

Interpretation:
The response recorded was such that, 90.6% of the people Agreed to the statement ‘I.T. in banks
much more advanced than traditional banking’,1.9% of the people disagree with this statement and
7.5% are Neutral. So majority of people says that I.T. in banks much more advanced than traditional
banking.

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4.4 Information technology in banks encouraging online frauds.

Scale No. of Respondents Percentage of Respondents

Yes 24 43.4%

No 18 34%

Some Extent 12 22.6%

Total 54 100%

Graphical Representation:

Interpretation:

According to the above data collected it is cleared that approximately 43.4% of people say yes, 34%
says no and 22.6% says to some extent. Conclusion was made that Information technology in banks
encouraging online frauds.

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4.5 Which Type of banking facility are you comfortable with that will be user friendly to
customer.

Scale No. of Respondents Percentage of

Respondents
Online Banking 20 37%

Manual Banking 12 22.2%

Both 22 40.7%

Total 54 100%

Graphical Representation:

Interpretation:

According to above data collected it is cleared that approximately 22.6% of people says that manual
baking type of facility friendly to illiterate customer,23.8% says online banking and 41.5% say both
online as well as manual banking is friendly to the customers. Majority of people are comfortable
with online banking and that will be user friendly to them.

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4.6 In what way I.T. in banks affect the work of the employees.

Scale No. of Respondents Percentage of

Respondents

Increase the work 7 13%

Decrease the work 38 70.4%

Same at both level 9 16.7%

Total 54 100%

Graphical Representation:

Interpretation:

According to the above data collected it is clear that 13% says I.T. in bank increases the work of
the employees, 70.4% says decreases the work and 16.7% says it is a same at both the levels. IT
in banks to some extend the reduces the work of employees.

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4.7 Does I.T. in banks increasing the cost of banking operations/ banking transactions.

Scale No. of Respondents Percentage of Respondents

Yes 48 88.9%

No 2 3.7%

Equal 4 7.4%

Total 54 100%

Graphical Representation:

Interpretation:

According to above data collected it is cleared that approximately 88.9% of employees says yes that
is I.T. in banks increasing the cost of banking operations/ banking transactions, 3.7% says no and
7.4% says equal. Online banking is much more costlier than manual banking. It is increases the cost of
banking operations

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4.8 Do you think digital banking service offered by HDFC bank is better than other banks?

Scale No. of Respondents Percentage of Respondents

Yes 46 85.2%

No 3 5.6%

Can’t say 5 9.3%

Total 54 100%

Graphical Representation:

Interpretation:

At last, the customers were asked about the services offered by the bank and what is their thought
when it comes to other banks offering the same service. The response recorded was such that, 85.2%
of the customers were satisfied with the banking services of HDFC bank, 5.6% were the ones who
were not satisfied with the services, and 9.3% were unsure about it. .It was analyzed that those who
were not satisfied were also using the services being offered by State bank of India, a rival
government bank to HDFC.

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4.9 Which online feature of the bank do you use frequently?

Scale No. of Respondents Percentage of

Respondents
Transfer of Fund 17 31.5%
Make bill payments 22 40.7%
View Account Statement 14 25.9%
Booking Tickets 1 1.9%
Total 54 100%

Graphical Representation:

Interpretation:

Regarding the feature of the digital services used by the customers, response came in a way that,
31.5% of the people were active on online banking for fund transfer, 25.9% for account statement,
40.7% for payment of various bills, and 1.9% were such that they used digital medium for the purpose
of booking tickets only The analysis was recorded that, majority of the section was from business class
which was active on digital platform for the sole purpose of bill payment.

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1.10 What is the reason due to which you opted for digital banking.

Scale No. of Respondents Percentage of Respondents

Time Saving 31 67.4%

Convenient 10 18.5%

Easy to maintain transaction 13 24.1%

Total 54 100%

Graphical Representation:

Interpretation:

When it was asked for the reason behind opting for digital banking, the respond came in a way that
57.4% of the people said that digital banking is time saving for them, 24.1% of them said that it is easy
to transact via digital medium, and 18.5% of them were such that it is convenient to use digital
banking than to visit bank on a daily basis. Thus from this interpretation it can be said that people
nowadays, are getting more oriented towards digital medium.

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CHAPTER- V FINDINGS, SUGGESTIONS,

CONCLUSION

5.1 OBERVATIONS & FINDING

According to the survey conducted in HDFC bank, the following points are concluded

1. It is observed that IT in baking sector is much more advanced than traditional banking.

2. IT in banks to some extend the reduces the work of employees.

3. IT in bank to some extend encourages online frauds.

4. Online banking is much more costlier than manual banking. It is increases the cost of banking
operations.

5. Majority of people are comfortable with online banking and that will be user friendly to them.

6. Hence we can say that the bank is making its presence felt due to its quick services.
7. Online banking facility can lead to progress of banking sector.

8. For majority of the people, it was convenient for them to use digital medium for online transaction
as it was time saving for them.

9. Most of the people were in favor of HDFC bank providing the best of facilities in comparison to
other bank

5.2 SUGGESTIONS

1. Some highly advanced software/programs should be implemented in banking sector in order to

prevents hackers and frauds.

2. Online banking operations cost or banking transaction cost should be reduced so that middle class
customer can have access to online banking facility.

3. Awareness programs related to online baking for people.

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5.3 LIMITATIONS

1. The study is only for the HDFC Bank confined to a particular location and a very small sample of
respondents. Hence the findings cannot be treated as representative of the entire industry.

2. In our study we have included 50 customers and employees of the bank

5.4 CONCLUSION

The objective of this study was to see the role of I.T. in HDFC bank Online banking facility can lead
to progress of banking sector. The technology has been one among the foremost necessary factors for
the communication technology For majority of the people, it was convenient for them to use digital
medium for online transaction as it was time saving for them. The research was descriptive in nature.
The universe of the study was the customers of HDFC bank. The survey was carried out on 50
respondents in which the data analysis tools used were tables and pie charts. Due to innovation and
spread of new technology, banks today offer the customer a choice to conduct their business across the
counter The bank is more prone to adopt new technology in its service offering for its customer
satisfaction.

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REFERENCE – BIBLIOGRAPHY

 Websites: -

• www.grossarchive.com
• www.ijtsrd.com
• www.ukessays.org
• www.loyolacollege.edu
• www.authorstream.com

 survey Questionnaire link

https://docs.google.com/forms/d/e/1FAIpQLSdA7wZztPNg0Ea85Jg1
Blch2yEETILxXcmR6NzrTzllyMhU6A /viewform?usp=sf_link

 Research paper
https://www.researchgate.net/publication/289497163_Information_technolog
y_in_the_banking_sector_Review_of_mobile_banking

https://www.researchgate.net/publication/227466112_The_Role_of_Informat
ion_Technology_on_the_Banking_Industry

https://www.researchgate.net/publication/261345518_Impact_of_information
_technology_on_Indian_banking_services

https://www.researchgate.net/publication/289497163_Information_technolog
y_in_the_banking_sector_Review_of_mobile_banking

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A
Project Synopsis
on

“STUDY OF ROLE OF IT IN BANKING

SERVICE”
Special Reference to

HDFC Bank

MASTER OF BUSINESS ADMINISTRATION

Submitted By
Miss. Snehal Amrutrao Inamdar
(Roll No. – 1940025)

Under the guidance of Dr.

Mrs. Seema S. Desai
(MBA; PhD)

Submitted to
Department of Management Studies (MBA)
Rajarambapu Institute of Technology
(An Autonomous Institute affiliated to Shivaji University, Kolhapur)

Academic Year
2020 – 2021

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“Study Of Role Of IT in Banking Service”

Special Reference to

HDFC Bank

1. INTRODUCTION TO THE STUDY: -

The project was undertaken in “HDFC Bank , Branch- Vita” . The study was made to know
“Role of IT” at HDFC Bank, Branch-Vita.

The Indian Banking Sector with the progress in Technology is facing the biggest challenged of
rapidly changing customer expectation against the backdrop of LPG. The Private and MNC banks
brought new technologies .Banks are continuously encouraging investment in information
technology. There were a series of technological innovations and up-gradation, e.g., ATM s,
Internet Banking, Credit Card and Online Banking .

The purpose of this study is to examine the relationship between new technology
implementation in banking and customers. How they are aware about the technologies and how
they use it. Banking environment has become highly competitive today. To be able to survive
and grow in the changing market environment banks are going for the latest technologies.
Technology is helping the Banks to cater to customer needs in a much more efficient manner
continuous and error free services to customers. With help of computerization and the use of
modern software, which can be called the gift of technology. Information technology has
basically been used under different avenues in banking.
Information technology has changed the contours of 3 major functions being performed by the
banks i,e. access to liquidity, transformation of asset and then monitoring of risks. Information
technology and communication networking system have a vital bearing on the efficiency of
money, capital and foreign exchange markets.
In other words electronic banking has modified the traditional risks and benefits associated with
banking. Risks in general can be characterized as strategic, operational, legal and reputational, so
it is to be said that it has increased the overall risk profile of banks.
When private and MNC banks initiated the world class service to their customers and started
snatching customers from Public Sector Banks, Public sectors banks were bound to follow the
path of Private Banks. The PSU banks felt the heat and realized their mistake. They also
followed the Private Banks in their technology initiatives and services.

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The Indian Banking Sector with the progress in Technology is facing the biggest challenged of rapidly
changing customer expectations against the backdrop of LPG (Localization, Privatization and
Globalization). Retail banking clients today demand more care and extra facilities. They want more
mobility of investments, interactive accounts, and better segmentation of banking products to cater to
different segmental needs, convenience and untimely hour services.
Technology is helping the Indian Banks to cater to customer needs in a much more efficient manner
continuous and error free services to customers. With the help of computerization and the use of
modem software, which can be called the gift of technology, the banks have been able to provide
single window system to their customers. In a single window system, all the needs of the customers
are taken care at a single counter. It is like a multipurpose counter where one can deposit cheque,
receive payments and deposit cash etc.

2. OBJECTIVES OF THE STUDY:-

1. To study the role of Information technology in banking services.

2. To study about the preference of electronic payment system.
3. To study the effect of information technology on the operation of banks.

3. IMPORTANCE AND SIGNIFICANCE OF THE STUDY:-

1. The study covers the services offered by banks to the customers by the use of technology.
2. This study helpful to understand how technology used in banks.
3. This study helpful to analysis of banking innovation after computerisation of banks.
4. This study helpful to identify the challenges in the implementation of I.T.

4. HYPOTHESIS:-

Null hypothesis (H0): The use of information technology does not have significant effect on the
operation of banks.

Alternative hypothesis (H1): The use of information technology has significant effect on the
operation of banks.

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5. RESARCH METHODOLOGY:-

A research design is a arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure. In fact, the research
design is the conceptual structure within which research is conducted. This research was descriptive in
nature.

1) Primary Data:-

Primary data is the data which is collected for the first time from the source and never have been used
earlier. In this project, an appropriate questionnaire was designed which was answered by the
employees and customers of HDFC bank to know role of IT in the bank

2) Secondary Data:-

The secondary data collected from different journals, Magazines, websites and published data from different
public sector banks. Various studies on this subject have also been referred in this study.

Sample Design:-

A sample of minimum respondents was selected from various areas of vita city. An effort was made to
select respondent evenly. The survey was carried out on 54 respondents. out of 100

Sample Technique: Simple Random Sampling

Sample unit

In this project sampling unit consisted of the various individuals who had their bank account with
HDFC bank i,e customers and employees of the bank in Vita City

Tools for the study

The analysis of the data collected through research been done systematically. simple percentage, pie
chart and tables where used to represent variety of data that falls into various categories. the analysis
has been done systematically and accurately.

6. EXPECTED CONTRIBUTION:-
The study concluded that I.T. in the bank is much more advanced than traditional banking. Online
transaction are widely used than manual transactions and it lead to progress of the banking sector. I.T.
in banks to some extent reduces the work of employee and encourages online frauds. It increases the
cost of banking operations. The banking today is redefined and re-engineered with the use of IT and it
is sure that the future of banking will offer more sophisticated services to customers with the
continuous product and process innovations. Another important responsibility is to ensure the data is

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used only for the purpose intended. For this, there is a need to implement IT and other Cyber laws
properly. This will ensure the developmental role of IT in the banking.

7. CHAPTERISATION

The chapterisation of the study will be as following;

CHAPTER NO. - I INTRODUCTION

CHAPTER NO. - II LITERATURE REVIEW

CHAPTER NO. - III RESEARCH DESIGN

CHAPTER NO. - IV DATA ANALYSIS AND INTERPRETATION

CHAPTER NO. - V FINDINGS, SUGGESTIONS AND

CONCLUSION

ANNEXURE

BIBLIOGRAPHY

Name and Signature Name and Signature

of the Research Students of the Research Guide

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 Appendices & Annexures

 Questionnaire

1) I.T. in banks much more advanced than traditional banking?

• Agree

• Disagree

• Fifty Fifty

•
2) Information technology in banks encouraging online frauds.
• Yes
• No
• To some extent

3) Type of banking facility that will be friendly to illetetrate customer.

•Online banking

•Manual-banking

•Both

4) Why do you choose HDFC as your digital banking option? *

 Faster service

 User friendly

 Brand name

 Period of attachmen

5) How frequently do you use digital banking ? *

 Daily

 Weekly
  Monthly

 Once in year

 Never

6) In what way I.T. in banks affect the work of the employees

 Increase the work

 Decrease the work

 Same at both level


7) Does I.T. in banks increasing the cost of banking operations/ banking transactions.

 Yes

 No

 Equal

8) Do you think digital banking service offered by HDFC bank is better than other banks ?

 Yes

 No

 Can't say

9) Which online feature of the bank do you use frequently ?

 Transfer of funds

 Make bill payments

R.I.T. Rajaramnagar
  View account statement

 Booking tickets

10) What is the reason due to which you opted for digital banking

 Time saving

 Convenient

 Easy to maintain transaction

R.I.T. Rajaramnagar
 Summer Internship Program (SIP)

Weekly Progress Report

Submitted By

Name: ________________________________________________________

Enrollment No.: _______________________________________________

Department: __________________________________________________

Supervised By

Name of the Institute Mentor: ___________________________________________

Kasegaon Education Society’s

Rajarambapu Institute of Technology
Rajaramnagar, Sakharale- 415414, Tal- Walwa, Dist- Sangli
Tel- 9970700700
E-Mail- [email protected]

(2020 -21)

R.I.T. Rajaramnagar
 Summer Internship Weekly Work Report 1

K. E. Society’s

Rajarambapu Institute of Technology, Rajaramnagar

Department of Management Studies (MBA) 2019 – 20
Final Year MBA: IVth Semester Internship

Weekly Progress Report

(Weekly work report to be maintained during an internship by the student)

Name of Student

Name of Company

Address of Company

Class Roll No
_
Name of Industry Guide Reporting

Contact Number of Reporting Person

Email Id of the Industry Guide -

Project Title:

Project Domain / Area:

Mobile No Parents Mobile No

Summer Internship Period: to

R.I.T. Rajaramnagar
 Summer Internship Weekly Work Report 2

Weekly Report From / __ / 2020 to / / 2020

Week No.

Departments Visited
Notes about new skills or software’s learnt during training or work on new
assignments etc.

Project work progress

Challenges faced

Additional Comments

Rate your work experience in terms of skills/knowledge learned

Excellent Good, Average, Poor

Name & Signature of Industry Guide:

R.I.T. Rajaramnagar
 Summer Internship Weekly Work Report 3
Weekly Report
Week No. From / __ / 2020 to / / 2020

Departments Visited
Notes about new skills or software’s learnt during training or work on new
assignments etc.

Project work progress

Challenges faced

Additional Comments

Rate your work experience in terms of skills/knowledge learned

Excellent Good, Average, Poor

Name & Signature of Industry Guide:

R.I.T. Rajaramnagar
 Summer Internship Weekly Work Report 4

Weekly Report From / __ / 2020 to / / 2020

Week No.

Departments Visited
Notes about new skills or software’s learnt during training or work on new
assignments etc.

Project work progress

Challenges faced

Additional Comments

Rate your work experience in terms of skills/knowledge learned

Excellent Good, Average, Poor

Name & Signature of Industry Guide:

R.I.T. Rajaramnagar
 Summer Internship Weekly Work Report 5

Weekly Report From / __ / 2020 to / / 2020

Week No.

Departments Visited
Notes about new skills or software’s learnt during training or work on new
assignments etc.

Project work progress

Challenges faced

Additional Comments

Rate your work experience in terms of skills/knowledge learned

Excellent Good, Average, Poor

Name & Signature of Industry Guide:

R.I.T. Rajaramnagar
 Summer Internship Weekly Work Report 6

Weekly Report From / __ / 2020 to / / 2020

Week No.

Departments Visited
Notes about new skills or software’s learnt during training or work on new
assignments etc.

Project work progress

Challenges faced

Additional Comments

Rate your work experience in terms of skills/knowledge learned

Excellent Good, Average, Poor

Name & Signature of Industry Guide:

R.I.T. Rajaramnagar
 Summer Internship Weekly Work Report 7

Weekly Report From / __ / 2020 to / / 2020

Week No.
Departments Visited
Notes about new skills or software’s learnt during training or work on new
assignments etc.

Project work progress

Challenges faced

Additional Comments

Rate your work experience in terms of skills/knowledge learned

Excellent Good, Average, Poor

Name & Signature of Industry Guide:

R.I.T. Rajaramnagar
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