Sai Om Journal of Commerce & Management A Peer Reviewed National Journal. ANALYZE THE E-BANKING BRANCHES AND ATMs OF INDIA

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1 Volume 1, Issue 5 (May, 2014) Online ISSN Published by: Sai Om Publications ANALYZE THE E-BANKING BRANCHES AND ATMs OF INDIA Geetanjali Jangale Research Scholar, JJT University, Rajasthan, India geetanjalijangale@gmail.com ABSTRACT E-banking has a considerable impact on today's banking business because it creates innovative services. Banking online is more efficient because bankers can access and manage multiple accounts through one online bank account and customer numbers will also not be the same as any debit or credit card issued by the financial institution to the customer. ATMs are at your doorstep; therefore the customer can obtain funds at any time from ATM machines. So, in order to survive in this environment banks have to use IT and the objective of the present paper is to analyze the e-banking Branches and ATMs of India after adopting the e-banking services. The study is secondary based in analytical in nature. The sources of data are Report on Trends and Progress of Banking in India published by Reserve Bank of India, Mumbai and the studied data is founded by the calculation of total branches of all banks comparing to the individual bank in Rural, Semi-urban, Urban and Metropolitan sectors of e-banking Branches of India and ATMs of on-site and off-site. Keywords: e-banking; Branches; ATMs; Analyze INTRODUCTION E-banking access online banking, the customer would go to the financial institution's website, and enter the online banking facility using the customer number and password. By the use of computer transact and control the bank account online through the net banking service. E-Banking service makes banking a lot more easy and effective. Banking through the internet provides customers with a variety of services that are either free or have a nominal fee. Online banking is more convenient for consumers because the internet is open 24 hours and can be accessed from anywhere in the world. E-banking has a considerable impact on today's banking business. Banking activities such as; account inquiries, depositing or transferring funds and ordering checks, can now be done remotely, 24 hours a day and seven days a week. Banking online is more efficient because bankers can access and manage multiple accounts through one online bank account. E-banking involves information technology based banking. Under this I.T system, the banking services are delivered by way of a Computer-Controlled System. This system does involve direct interface with the customers. The customers do not have to visit the bank's premises. Indian banking industry has witnessed a tremendous developments due to sweeping changes that are taking place in the information technology. Electronic banking has emerged from such an innovative development. The popular services covered under E-banking include: 1. Automated Teller Machine (ATM), 2. Credit Cards, 3. Debit Cards, Available online on 22

2 4. Smart Cards, 5. Electronic Funds Transfer (EFT) System, 6. Real Time Gross Settlement (RTGS)/NEFT, 7. National Electronic Clearing Service (NECS), 8. Cheques Truncation Payment System, 9. Mobile Banking, 10. Internet Banking, 11. Telephone Banking, etc. STATEMENT OF THE PROBLEM The main advantages of E-banking are to operating cost per unit services is lower for the banks and offers convenience to customers as they are not required to go to the bank's premises and also the customer can easily transfer the funds from one place to another place electronically. Online banking is a technological advancement that has brought about such a change. The banking industry has adopted virtual banking to improve business process, infrastructure, and customer relationships. These changes have had a major impact on the banking business, but more transparently on the customers of online banking. The matrix measures for the improvements added by online banking can be evaluated on comparable levels of service, efficiency and cost satisfaction, for both the provider and consumer of this technology. Customer s numbers are normally not the same as account numbers, because number of accounts can be linked to the one customer number. The customer will link to the customer number any of those accounts which the customer controls, which may be cheque, savings, loan, credit card and other accounts. Customer numbers will also not be the same as any debit or credit card issued by the financial institution to the customer and ATMs are at your doorstep, therefore the customer can obtain funds at any time from ATM machines. So, in order to survive in this environment banks have to use IT and the objective of the present paper is to analyze the e-banking Branches and ATMs of India after adopting the e-banking services. OBJECTIVES OF THE STUDY 1. To study the various e-banking services adopted by Indian banks. 2. To study the challenges faced by Indian banks in adoption of technology. 3. To analyze the e-banking Branches and ATMs of India. METHODOLOGY The study is secondary based in analytical in nature. The sources of data are Report on Trends and Progress of Banking in India published by Reserve Bank of India, Mumbai. The parameters of the study are Computerization of branches, Automated Teller Machines and Transactions through Retail Electronic Payment Methods such as Electronic Clearing services (ECS) - debit and credit, National Electronic Fund Transfer and Electronic Clearing Cards that is debit card and credit card. To analyze the e-banking services Branches and ATMs of banks in India. The paper also highlights the challenges faced by Indian banks in adoption of technology. Data is founded by the calculation of total branches of all banks comparing to the individual bank in Rural, Semi-urban, Urban and Metropolitan sectors of e-banking Branches of India and ATMs of on-site and off-site. Below is the table and graph which interpreted the study. VOL. 1, ISSUE 5 (May 2014) 23

3 E-Banking Branches and ATMs of India Sr. No. Name of the Bank 1 Scheduled Commercial 2 Public 3 Nationalized 4 Private 5 Old Private (As at end-march 2013) Branches ATMs Rural Semiurbalitasitsite Urban Metropo- Total On- Off- Total Analyze the Percentage of Total Branches Name of the Bank Total Branches Percentage Scheduled Commercial % Public % Nationalized % Private % Old Private % The above table interpreted that the high e-banking Branches are 37.63% in Scheduled Commercial i.e and it is high in rural sector which is We can see here in above table that comparing to public sector banks, nationalized banks, private sector banks and old private sector banks, scheduled commercial banks branches are more. The least percentage of branches in old private sector banks i.e. 2.57% and which is in rural sector of 1069 out of the total 6047 of other sectors like VOL. 1, ISSUE 5 (May 2014) 24

4 semi-urban, urban and metropolitan. And the remaining banks indicate the percentage of public sector banks 30.88%, nationalized banks 22.30% and private sector banks of 6.62%. Analyze the Percentage of Total ATMs Name of the Bank Total ATMs Percentage Scheduled Commercial % Public % Nationalized % Private % Old Private % The above table interpreted that the high e-banking ATMs are 42.01% in Scheduled Commercial i.e and it is high in off-sites which is The above table also interpreted that by comparing to public sector banks, nationalized banks, private sector banks and old private sector banks, scheduled commercial banks ATMs are more. The least percentage of ATMs in old private sector banks i.e. 2.79% and which is in off-site of 3512 out of the total 7566 of on-site. And the remaining banks indicate the percentage of public sector banks 25.66%, nationalized banks 13.66% and private sector banks of 15.88%. Challenges E-banking is facing various challenges in Indian banking industry which are as follows: 1. The most serious threat faced by e-banking is that it is not safe and secure all the time. There may be loss of data due to technical defaults. 2. New business environments are characterized by increasing sources of uncertainty and variability which challenge current decision-making processes. 3. E-banks are facing business challenges. For the transactions made through internet, the service charges are very low. Unless a large number of transactions are routed over the Web the e- banks cannot think of profit. 4. Accordingly banks which enter into the arena of e-banking will have to learn how to design appropriate risk management systems for decision support. 5. There is lack of preparedness both on part of banks and customers in the adoption of new technological changes. 6. It will affect their human resource strategies, as it will be necessary to induct and develop talent, because banks cannot outsource risk management function. VOL. 1, ISSUE 5 (May 2014) 25

5 7. There is lack of proper infrastructure for the installation of e-delivery channels. CONCLUSION are making sincere efforts to popularize the e-banking services and products by the adoption of advanced technology and installation of e-delivery channels but still masses are wary of the concept. Issue of unique identity number to citizens shortly will enable banks to ensure transparent delivery of economic benefits to the poor, impacting socio-economic transformation in a big way. Both in e- banking branches and ATMs of India the scheduled commercial banks shows high percentage and old private sector banks shows least percentage. After the old private sector banks the less percentage Branches of private sector banks and less percentage ATMs of nationalized banks. Finally, it is concluded in this paper that by analyzing the e-banking study, it is found that the total ATMs of the banks in India is more than the total Branches of the bank in India. REFERENCES 1. Ahasanul Haque, Ahmad Zaki Hj Ismail & Abu Hayat Daraz (2009), Issues of E Banking transaction: An Empirical Investigation on Malaysian Customers perception, Journal of Applied Sciences, 9 (10): D. Singhal & V. Padhmanabhan (2008), A Study on Customer Perception towards Internet Banking: Identifying major contributing factors, Journal of Nepalese Business Studies, 5 (1): G.C. Christopher Mike, L. Visit & W. Amy (2006), A Logit Analysis of Electronic Banking in New-Zealand, International Journal of Bank Marketing, 24: M.S. Khan, S. S. Mahapatra & Sreekrumah (2009), Service Quality Evaluation in Internet Banking: An Empirical Study in India, International Journal of Indian Culture and Business Management, 2 (1): R. Masocha, N. Chiliya & S. Zindiye (2011), E Banking adoption by customers in the rural milleus of SouthAfrica: A Case of Alice, Eastern Cape, South Africa, African Journal of Business Management, 5 (5): R. Larpsiri & M. Speece (2004), Technology Integration: Perception of Sales Force Automation in Thailand s Life Assurance Industry, Journal of Marketing Intelligence planning, 22 (4): R.J. Brodie, H. Winklhofer, N. E. Coviello & W.J. Johnston, (2007), Is e marketing coming of age? An Examination of the Penetration of e marketing and Firm Performance. Journal of Interactive Marketing, 21: R.K. Uppal (2011), E-Age Technology- New Face of Indian Banking Industry: Emerging Challenges and New Potentials, Journal of Social and Development Sciences, 1 (3): VOL. 1, ISSUE 5 (May 2014) 26