INTRODUCTION

The Internet has revolutionized the way we live, shop, entertain and interact and also the way we
save and invest. Internet banking arrived in India in the late 1990s . ICICI was the first bank to
champion its usage and introduced internet banking to its customers in 1996. With lower internet
costs and increased awareness about electronic media, online banking established itself only in
1999. Other banks followed suit, including HDFC, Citibank, IndusInd and the now redundant
Times Bank .

Internet banking changed both the banking industry as well as banks’ services to its customers.
‘Anywhere banking’ came to be recognized as an opportunity also for differentiated and
competitive services. Ancillary online services like checking account status, fund transfer,
ordering demand drafts, loan applications, credit card verifications, shopping portals etc. as well
as not requiring a visit to the branch during office hours were viewed as high-value offerings and
increasingly started to become a necessity rather than a service. Once banking institutions
recognized the low processing cost per transaction via the internet, they began viewing online
banking as an extension of the bank rather than as an add-on service. The motivation to introduce
online banking now also included new business potential, additional funds from new and existing
customers, expansion in geographical reach, image as a tech-savvy bank especially if targeting
the youth and the threat of customers shifting loyalty if they did not introduce it .

Nationalized banks initially viewed online banking as insecure and counterintuitive and were
therefore hesitant. But eventually, SBI, Canara Bank, Allahabad Bank, Punjab National Bank,
Bank of Baroda, Syndicate Bank and others introduced it. SBI launched internet banking in 2001
and experienced good response. In general, internet banking saw an exponential rise in users.

Today, banks encourage their customers to use online banking. Besides cost and revenue
impacts, this paradigm shift is because they also recognize that self-control transactions have
greater potential for customer satisfaction and retention. Online banking has thus come to be
among essential banking services.
The approach to adopting online banking however is often to merely stay abreast of industry and
technology and online banking is becoming a separate business unit driven by technological
possibilities. The user often has minimal place in such an approach as evidenced by non-human
centric experiences that flourish. However, the cultural and organizational shift needed by Indian
banks to draw old customers into this new banking channel as well as to draw new customers
requires a user centric focus.

But how much have banks paid attention to the user? How is the overall experience and how do
customers perceive their bank as they struggle unaided in the comfort of their homes? How
cognizant are banks that customers silently leave after getting frustrated? Do they measure how
much revenue they are losing because of a technology focused approach to online banking? How
do Indian consumers behave in this dichotomy between technology barrier and convenience?

Electronic banking, or e-banking, is the term that describes all transactions that take place among
companies, organizations, and individuals and their banking institutions. First conceptualized in
the mid-1970s, some banks offered customers electronic banking in 1985. However, the lack of
Internet users, and costs associated with using online banking, stunted growth. The Internet
explosion in the late-1990s made people more comfortable with making transactions over the
web. Despite the dotcom crash, e-banking grew alongside the Internet.

 Online banking (or internet banking or E-banking) allows customers of a financial

institution to conduct financial transactions on a secure website operated by the
institution, which can be a retail or virtual bank, credit union or building society.

 Online banking is the practice of making bank transactions or paying bills via the
Internet. Thanks to technology, and the Internet in particular, people no longer have to
leave the house to shop, communicate, or even do their banking. Online banking allows a
customer to make deposits, withdrawals, and pay bills all with the click of a mouse.
DIGITAL INDIA

The Digital India program is a flagship program of the Indian government whose vision is to
transform India into a digital society and a knowledge economy. "Faceless, paperless, cashless"
is one of the roles Digital India professes. As part of promoting cashless transactions and
converting India to a company with less cash, there are various digital payment methods
available. Demonetization is likely to be described as game changers of the Indian economy. On
the other hand, Demonetization is leading to boom cashless payments. In this futuristic world, all
payments will be made by contactless cards, mobile phone applications and other electronic
means while notes and coins will stand abolished. Denmark is reportedly in the forefront in this
regard where, under a new proposal paper money transactions will be disallowed, except for now
in places like hospitals. The Danish central bank will stop printing currency, and banks will stop
carrying cash. In Sweden, it is common practice already for parents to pay pocket money to their
children electronically. An environment where everyone is paralyzed at home, Covid -19 is
further increasing the need for E-cash transactions. Bought via video is currently being
introduced. This will help to further increase electronic transactions. Digital transactions have
increased during this time.

According to the latest data from the Reserve Bank of India, the total value of transactions
contracted by 46% in April compared to March, driven by the decline in various payment
methods, except for direct transfer payments of government benefits when using Aadhar
platforms, which registered a jump of 138%. Transactions and payments through various
banking channels (checks, NEFT and RTGS, and ATM withdrawal) fell between 26% and 71%
in April compared to March. The sharpest contraction was observed in the value of transactions
issued by the issuance of checks, which fell 71 percent in April to Rs.1.63 lakh crore in April
against Rs 5.65 lack crore in March.
India was in a demonetization phase, when the Government had started promoting cashless
transactions. After recognizing the potential of internet and technology, the Digital India project
was launched by the Govt. of India, which aimed at transforming the country into an integrated
economy, with the use of mobile phones and internet as two supporting pillars for extending
government services (Kumar, P & Dr. Chaubey, D (2015)). Various mobile websites and apps
were developed to provide facilities to the customers which were cost effective when compared
to the cost of branch banking which was 43 times more. It was a difficult task for the Indians to
get adjusted to the online platforms as Majority of the people were used to making transactions
in cash and were of the perception that conducting the same through mobile banking wasn’t safe
whereas others lacked the awareness and knowledge about the same. India is regarded as the
fastest emerging smartphone market in Asia. Since the onset of budget friendly smartphones,
customers are increasingly joining the mobile banking platforms as they offer various services
with the touch of a button. Customers can check account balances, transfer funds between
accounts, and make electronic bill payments without travelling to a traditional bank. The
customers have to no longer worry about the availability of liquid cash as transactions are taking
place electronically. Indian consumers gradually adjusted towards mobile banking as “Digital
offerings in mobile banking was the new normal” (KPMG). After digitalization, Customers were
more likely to draw towards those banks which offered them with Mobile Banking Facilities.
The launch of various M-banking apps had proved to be a game changer across the globe and
had compelled customers to shift their banking partners. Internet banking as a technology has
improved offering the various customer personalized needs now a days, the changing of
infrastructure and nature of banking from “Bricks to “Clicks” (Priya, R; Vikas Gandhi, A;
Shaikh, A 2018). The outbreak of COVID-19 pandemic has wrecked the world economy and
financial markets. It is drastically affecting the financial health in India as fast as it unfolds.
On March 25, India imposed one of the world's earliest, stringent lockdown, while its caseload
was still low. This was a good initiative by the central government as imposing a lockdown
helped in keeping people indoors, which facilitated in breaking the chain. India has been facing
many difficulties in extending its banking facilities due to the nationwide lockdown. Countless
people have become cashless, banks are deprived of their regular Cash flows and there has been
an increase in the loan defaults. Despite the prevailing challenges, People cannot behold
themselves from making their obligatory payments and routine transactions for a living. But the
likelihood of becoming infected with COVID-19 by touching a virus infected object or surface is
high. Physical cash handling can further accelerate virus spread. Hence the need of the hour
would be to shift to online payments and use mobile wallets. Government of India has also
extended its support to the mobile wallets through its partnership prototypes
with various banks and IT companies to increase its adoption and acceptance among the users.
The launch of 3G and 4G services in India has brought in collaborations between various
telecom companies and banks to enhance the mobile wallet services. It is projected that COVID-
19 would increase the usage of M-banking due to two factors. Firstly, mobile banking would
promote the social distancing policy, enabling the people to make transactions safely and
securely from their homes and as majority of the services are being offered on the online
platforms, customers would have no other choice than discovering the options of mobile banking
(V, G; & Manu, M; (2020)). The development’s in the field of internet & technology and the
existence of fintech companies have been a boon to the world and have made our lives much
easier during the pandemic. Over 500 million people in India now use smartphones (Goyal, V;
Pandey, U.S; Batra, S (2012)).
The mobile banking sector has an upward trend in countries like India as one-fifth (19.1%) of the
total population is composed of the younger generation, which is further projected to grow up to
34.33% share by 2020. (Statista) Majority of the youngsters are familiar with digital technologies
and depend upon them in numerous areas of their work and professional lives. They are in
support of a competitive mobile banking platform which are available round the clock. Several
studies have also demonstrated that India is the world’s second largest country in terms of the
internet base with 350 million internet users, out of which more than 50% are mobile users
(Iyengar, 2017). If we take into account the combination of two factors- a large unbanked
population and the ubiquity of smart phones –there is a catalyst for high mobile banking
adoption (Dr. Deshwal, P 2015). Mobile technology has transformed the global banking structure
and financial industry by delivering accessibility, convenience and affordability to the customers.
Contactless payment is the only way out ahead and payment modes like UPI, IMPS, RTGS,
Mobile Wallets and Net Banking are contributing effectively in reducing human interaction. The
COVID-19 outbreak has led to a 5% increase in the usage of mobile banking in just a period of
three months - January to March and is expected to further increase by a large proportion
(Statista). Global Digital banking system has boosted up to 85% (Forbes).
With the wide spectrum of internet users and emergence of fintech industries, Indian
Government will be able to promote the Digital India Program. The approach of mobile banking
facilities with innovated technology, will ensure higher security and promising aspect for
meeting the customer needs without compromising on their health and safety. Especially in times
like COVID-19, Mobile banking can be used as an opportunity to replace the physical banking
transactions by satisfying the customers in meeting their needs conveniently. Hence it is feasible
to study how customers are adopting to mobile based payments during hard times like COVID-
19.

OBJECTIVES

The objectives of the study are as follows.

 To study the concept of digital payment system

 To know the usages of digital payments

 To highlight the issues of digital payment systems

 To study the effect of Covid-19 on the mobile banking services
 To understand the shift from physical banking transactions to mobile banking
transactions during Covid-19

FEATURES OF ONLINE BANKING:

Online banking facilities offered by various financial institutions have many features and
capabilities
in common, but also have some that are application specific.
The common features fall broadly into several categories:
(A). A bank customer can perform non-transactional tasks through online banking, including-
I. Viewing account balances.
II. Viewing recent transactions.
III. Downloading bank statements, for example in PDF format.
IV. Viewing images of paid cheques.
V. Ordering cheque books.
VI. Download periodic account statements.
VII. Downloading applications for M-banking, E-banking etc.
(B). Bank customers can transact banking tasks through online banking, including –
I. Funds transfers between the customer's linked accounts.
II. Paying third parties, including bill payments (see, e.g., BPAY) and third party fund
transfers (see, e.g., FAST).
III. Investment purchase or sale.
IV. Loan applications and transactions, such as repayments of enrolments.
V. Credit card applications.
VI. Register utility billers and make bill payments.
VII. Financial institution administration.
VIII. Management of multiple users having varying levels of authority.
IX. Transaction approval process.

Some financial institutions offer special internet banking services, for example:
 Personal financial management support, such as importing data into personal Accounting
Software. Some online banking platforms support account Aggregation to allow the
customers to monitor all of their accounts in one place whether they are with their main
bank or with other institutions.

ADVANTAGES OF ONLINE BANKING:

Many banks have begun to offer customers the option of online-internet banking, a practice that
has advantages for both all parties involved. The convenience of being able to access accounts at
any time as well as the ability to perform transactions without visiting a local branch, draw many
people to be involved. Some of these advantages of internet banking but are not limited to,
include:
 Customer’s convenience
Direct banks are open for business anywhere there is an internet connection. They are also 24
hours a day, 365 days a year open while if internet service is not available, customer services is
normally provided around the clock via telephone. Real-time account balances and information
are available at the touch of a few buttons thus, making banking faster, easier and more efficient.
In addition, updating and maintaining a direct account is easy since it takes only a few minutes to
change the mailing address, order additional checks and be informed for market interest rates.
 More efficient rates
The lack of significant infrastructure and overhead costs allow direct banks to pay higher interest
rates on savings and charge lower mortgage and loan rates. Some offer high-yield checking
accounts, high yield certificate of deposits (CDs), and even no-penalty CDs for early withdrawal.
Inaddition, some accounts can be opened with no minimum deposits and carry no minimum
balance or service fees.
 Services
Direct banks typically have more robust websites that offer a comprehensive set of features that
may not be found on the websites of traditional banks. These include functional budgeting and
forecasting tools, financial planning capabilities, investment analysis tools, loan calculators and
equity trading platforms. In addition, they offer free online bill payments, online tax forms and
tax preparation.
 Mobility
Internet banking also includes mobile capabilities. New applications are continually being
created to expand and improve this capability or smart-phones and other mobile devices.
 Transfers
Accounts can be automatically funded from a traditional bank account via electronic transfer.
Most direct banks offer unlimited transfers at no cost, including those destined for outside
financial institutions. They will also accept direct deposits and withdrawals that the customer
authorizes such as payroll deposits and automatic bill payment.
 Ease of use
Online accounts are easy to set up and require no more information than a traditional bank
account. Many offer the option of inputting the customer's data online or downloading the forms
and mailing them in. If the customer runs into a problem, he has the option of calling or e-
mailing the bank directly.
 Environment friendly
Internet banking is also environmentally friendly. Electronic transmissions require no paper,
reduce vehicle traffic and are virtually pollution-free. They also eliminate the need for buildings
and office equipment.

THE DISADVANTAGES OF INTERNET BANKING

Internet banking seems like an obvious choice to leave the hassles of traditional money
management behind in exchange for it. However, there are potential problems associated with
banking over the internet of which customers may not be aware. Consumers need to weigh the
advantages as well as the disadvantages of internet banking before signing up. Some of the
disadvantages of internet banking include:

 Bank relationship
A traditional bank provides the opportunity to develop a personal relationship with that bank.
Getting to know the people at your local branch can be an advantage when a customer needs a
loan or a special service that is not normally offered to the public. A bank manager usually has
some discretion in changing the terms of customer's account if the customer's personal
circumstances change. They can help customers solve problems such as reversing an undeserved
fee. The banker also will get to know the customer and his unique needs. If the customer has a
business account, this personal relationship may help if the customer needs capital to expand. It’s
easier to get the bank’s support if there is someone who understands customer's business and
vouch for his operating plan.
 Transaction issues
Sometimes a face-to-face meeting is required to complete complex transactions and address
complicated problems. A traditional bank can host meetings and call in experts to solve a
specific issue. Moreover, international transactions may be more difficult (or impossible) with
some direct banks. If a customer deposits cash on a regular basis, a traditional bank with a drive-
through window may be more practical and efficient.
 Service issues
Some direct banks may not offer all the comprehensive financial services such as insurance and
brokerage accounts that traditional banks offer. Traditional banks sometimes offer special
services to loyal customers such as preferred rates and investment advice at no extra charge. In
addition, routine services such as notarization and bank signature guaranteed are not available
online. These services are required for many financial and legal transactions.
 Security
Direct banks are subject to the same laws and regulations as traditional banks and accounts are
protected by the FDIC. Sophisticated encryption software is designed to protect your account
information but no system is perfect. Accounts may be subject to phishing, hacker attacks,
malware and other unauthorised activity. Most banks now make scanned copies of cleared
checks available online which helps to avoid and identify check fraud. It enables verification that
all checks are signed by the customer and that dollar or euro amounts have not been changed.
The timely discovery of discrepancies can be reported and investigated immediately.
 Connectivity
Another issue is that sometimes it becomes difficult to note whether your transaction was
successful or not. It may be due to the loss of net connectivity in between, or due to a slow
connection, or the bank’s server is down.
 DIFFERENT TYPES OF ONLINE BANKING

1. CORE BANKING SOLUTION or CBS:

Core Banking is a banking service provided by a group of networked bank branches where
customers may access their bank account and perform basic transactions from any of the member
branch offices. Core banking is often associated with retail banking and many banks treat the
retail customers as their core banking customers. Businesses are usually managed via the
Corporate banking division of the institution. Core banking covers basic depositing and lending
of money.
Normal Core Banking functions will include transaction accounts, loans, mortgages and
payments. Banks make these services available across multiple channels like ATMs, Internet
banking, mobile banking and branches.
The core banking services rely heavily on computer and network technology to allow a bank to
centralise its record keeping and allow access from any location. It has been the development of
banking software that has allowed core banking solutions to be developed.
Core banking became possible with the advent of computer and telecommunication technology
that allowed information to be shared between bank branches quickly and efficiently.

Before the 1970s it used to take at least a day for a transaction to reflect in the account because
each branch had their local servers, and the data from the server in each branch was sent in a
batch to the servers in the data centre only at the end of the day (EoD).

Over the following 30 years most banks moved to core banking applications to support their
operations where CORE Banking may stand for "centralized online real-time exchange". This
basically meant that all the bank's branches could access applications from centralized data
centres. This meant that the deposits made were reflected immediately on the bank's servers and
the customer could withdraw the deposited money from any of the bank's branches.
ADVANTAGES:
1. Centralized Accounting:
i) All the transactions of the bank directly impact the General Ledger and Profit and Loss
Account. This provides a real time total picture about the financial position and situation
of the bank
ii) This helps for timely effective decision making for financial management, a very critical
and dynamic function in today’s banking.
2. Centralized Product Control & Monitoring:
i) Centralization helps in better product analysis, monitoring and rollout.
ii) Aspects like interest rate modifications, product modification and interest application can
be done centrally from one place for all the branches.
iii) Bank can quickly respond to market scenario and customer needs. This gives competitive
edge to the bank.
3. Introduction of Technology Based Services:
i) Service channels such as ATM, either on-site or offsite, can be started.
ii) Cheque Deposit Machines (CDM) can be installed. Such machine in WAN connectivity
can allow any customer to deposit the cheque for collection at any branch. Cheque book
printing machine can be installed at central location to give personalized
iii) cheque books. Such machine in WAN connectivity can receive command from any
branch. Such machine in WAN connectivity can receive command from any branch.
4. Centralized Customer Account Management:
i) Any customer becomes the customer of the bank rather than of a branch.
ii) With unique ID / Account Number the accounts of the customers can be viewed
centrally by the bank. As such, customer profile, details of products and services availed
by him and customer behaviour about business of the bank can be well understood.
iii) Such customer view gives the bank opportunity to decide directions for business
development and marketing strategies.
5. Advantages to Head Office:
i) Consolidation of MIS / statements / reporting at one place reducing duplication of
tasks at branches and it is of real time.
ii) Supervision of branches on risk perceptions possible as ongoing process.
 iii) Frequent audits and timely control measures can be initiated.
iv) Faster and practically real time reconciliation of accounts.
v) Centralized marking and movement monitoring of NPA accounts.
vi) Better ALM, especially for short term assets and liabilities possible.
vii) Audit on operational aspects of the accounts can be done at a single location as entire
data is available at one place.
viii) By installing mailing solution on the intra net of the bank, written communication in
the form of letters, between H. O. and branches and vice versa, can be eliminated.
6. Advantages to Branch:
i) With reduced work at the branches they can focus on development of business, customer
service and attendance and meaningful liaison with customer for getting new business.
ii) Since customer needs are known with proper analysis they can be well attended even
before their demands that boosts the image of bank.

State Bank of India, World's Largest Centralized Core Processing

Implementation:

The story began in 2000. With its growth curve heading northward, State Bank of India (SBI),
the country's largest bank with the largest branch network, realized the need for a core banking
solution. An expression of interest was invited in July 2000, and the actual implementation was
started in August 2003 when the first branch of the bank was put on TCS' BαNCS core banking
solution.
The planning stage lasted three years, while the BαNCS implementation took another five years
(till July 2008) to complete. The entire project of implementing the core banking solution was
handled by TCS as the systems integrator, while other major technology partners in the project
were HP,
Data craft, Cisco and Microsoft. The core banking solution implemented at SBI and its associate
banks currently execute an average of 42 million transactions per day with a peak of 1,900
transactions per second through a massive network of about 17,700 branches and over 20,000
ATMs servicing nearly 243 million customers. The CBS at SBI executes an average of 42
million transactions per day with a peak of 1,900 transactions per second through a network of
about 17,700 branches.
Further, SBI had more than 2 lac employees, and many of them had little familiarity with Web-
based technology before the core banking solution's implementation. "SBI and TCS had to
ensure that the bank employees were well-acquainted with the use of the solution, Indeed, at one
point of time, SBI had 58 training centres.

ATM BANKING:

Full-service banking, 24 hours a day.

Make banking more convenient with ATMs and debit card.
 Convenient Self Service
- Deposits – Cash and check deposits can be made at most BBVA Compass ATMs.
- Withdraw Funds – The cash you need when you need it.*
- Transfer funds – Move funds between checking accounts and savings accounts that are
linked to your debit card.

 Account Management
- Check Balance – View your account balance before you make a withdrawal.
- Mini Statement – Receive a print out of your transaction history and account balances.*

 Customizable
- Fast Cash – Set standard ATM withdrawal amounts.
- Receipt Options – Set whether or not you will receive a receipt when you make
transactions.
- Preferred Language – Choose between English or Spanish.
MODES USED FOR DIGITAL PAYMENTS:

Nowadays, we find ourselves carrying cold hard cash less and less because you can just as easily
make your purchase with payment cards, and track your spending online. Plus, it’s more secure
than carrying $350 to buy the latest iPad (MINI).
Certain payment or loyalty cards also let you earn rewards or entries to contests, but they do
add up. They make your wallet unnecessarily thick and heavy. Perhaps it is time to swap the
system again; this time, for something that you have always been carrying around: your
smartphone
Digital wallets can help take you there. They are smartphone apps that hold your payment and loyalty
card information. Google Wallet and Apple’s Passbook are two of the more popular ones we often hear
about, but if they are not your fancy, there are plenty of other digital wallets that carry perks and benefits
that you may prefer.

1. Google Pay

Instead of tapping your credit card on the NFC machine at the checkout counter, all you have to
dois wave your smartphone or tap it on the machine to make your payments. It’ll be able to
identify the credit card information linked on your Google account.
For this to work, Google Wallet requires Near Field Communication (NFC) technology
available, which unfortunately is only available on certain smartphones and tablets.

You link your debit or credit card to your Google account and you can leave your wallet at
home – but at the moment, it only works with phones. Currently, it supports 20+ merchants on
the ground and online, promising more merchants to come.

2. Phone Pay
PhonePe is an Indian digital payments and financial services company headquartered
in Bangalore, India. PhonePe was founded in December 2015, by Sameer Nigam, Rahul Chari
and Burzin Engineer. The PhonePe app, based on the Unified Payments Interface (UPI), went
live in August 2016.
The PhonePe app is available in over 11 Indian languages. Using PhonePe, users can send and
receive money, recharge mobile, DTH, data cards, make utility payments, pay at shops, invest in
tax saving funds, liquid Funds, buy insurance and mutual funds and gold. In addition PhonePe
also allows users to book Ola rides, pay for Redbus tickets, and book flights and hotels
on Goibibo through the Switch platform.

PhonePe is accepted as a payment option at over 17.5 million offline and online merchant outlets
across 500 cities in India covering food, travel, groceries, medicines, movie tickets etc.The app
crossed 100 million user mark in June 2018 and also crossed 5 billion transactions in December
2019. It currently has over 280 million users.The company launched the PhonePe ATM in
January 2020. The PhonePe ATM allows neighbourhood Kirana stores to dispense cash in real-
time to customers.

PhonePe is licensed by the Reserve Bank of India for issuance and operation of a Semi Closed
Prepaid Payment system with Authorization Number:

3.DIGITAL CASH:

Digital Cash acts much like real cash, except that it’s not on paper. Money in your bank account
is converted to a digital code. This digital code may then be stored on a microchip, a pocket card
(like a smart card), or on the hard drive of your computer.
The concept of privacy is the driving force behind digital cash. The user of digital cash is assured
an anonymous transaction by any vendor who accepts it. Your special bank account code can be
used over the internet or at any participating merchant to purchase an item. Everybody involved
in the transaction, from the bank to the user to the vendor, agree to recognize the worth of the
transaction, and thus create this new form or exchange.

4. KIOSK BANKING:
This is the latest development on the remote baking front, also known as 'Touch-screen' banking.
A kiosk is a self- service banking terminal that can be operated with both credit & debit cards.
The Debit/credit card can be swiped at against the card reader at the kiosk and account accessed
post entering the ATM PIN. Currently, very few banks like Citibank offer this facility to their
customers at select ATM centres across the country. Unlike an ATM, which is primarily used for
cash transactions like withdrawals, deposits, etc., a kiosk is primarily used for non-cash
transactions like cheque book request, printing bank
account statements, funds transfer etc. The number of transactions a particular location is
expected to be able to support is key here along with the types of transactions required. An ATM
and a Kiosk can both easily perform the same non cash and non-deposit transactions however the
real differentiators come down to how much time/ input the transaction takes (Financial Kiosks
have full keyboards and document printers, ATMs generally don`t) and queuing considerations
(at an ATM, most people just want to get their cash and go).

5. NEFT:

National Electronic Funds Transfer (NEFT) NEFT is electronic funds transfer system, which
facilitates transfer of funds to other bank accounts in over 63000 bank branches across the
country. This is a simple, secure, safe, fastest and cost effective way to transfer funds especially
for Retail remittances.
FEATURES & BENEFITS
Customers can remit any amount using NEFT Customer intending to remit money through
NEFT has to furnish the following particulars:
 IFSC (Indian Financial System Code) of the beneficiary Bank/Branch
 Full account number of the beneficiary
 Name of the beneficiary. The facility is also available through online mode for all
internet banking and mobile banking customers.For corporate customers, bulk upload
facility is also available at branches

TIMINGS
Customers can use this facility between 8 AM and 7 PM on all weekdays and between 8 AM and
1 PM on Saturday. There are twelve hourly settlements between 8 AM and 7 PM on all
weekdays and six hourly settlements between 8 AM and 1 PM on Saturdays.
The money will be credited to the beneficiary’s account on the same day or at the most next day
in case the message is sent during the last batch of settlement. Union Bank offers NEFT facility
to its customers through all its branches.

CHARGES
Rs. 5/ per transaction if the transaction amount is less than Rs. 1 lakh
Rs. 25/- per transaction if the transaction amount is more than Rs. 1 lakh
NOTE: Charges are waived for customers availing services at our branches in North Eastern
States

6. RTGS:

Real Time Gross Settlement (RTGS) is an electronic form of funds transfer where the
transmission takes place on a real time basis. In India, transfer of funds with RTGS is done for
high value transactions, the minimum amount being Rs 2 lakh. The beneficiary account receives
the funds transferred, on a real time basis.
The main difference between RTGS and National Electronic Funds Transfer (NEFT) is that
while transfer via NEFT takes place in batches (with settlements and transactions being netted
off), in the case of RTGS, the transactions are executed individually and on gross basis.
The customer initiating the funds transfer through RTGS has to have the Indian Financial System
Code (IFSC) of the beneficiary's bank, along with the name of the beneficiary, account number
and name of the bank. The bank branches, both at the initiating and receiving end, have to be
RTG Senabled for the transaction to be processed. Customers with Internet banking accounts can
do RTGS transactions on their own.
7. IMPS:

Using IMPS, a relatively newer service, users can transfer money immediately from one account
to the other account, within the same bank or accounts across other banks. Similar to NEFT,
there is no minimum amount for transactions, but the maximum* amount possible is Rs 5 lakhs.
Users can carry out Person to Person (P2P), Person to Account (P2A) and Person to Merchant
(P2M) transactions from their mobile, Internet or ATM. One of the advantages of IMPS
transaction is that it is available 24X7 and even on holidays. This can be payments for utility
bills, mobile or DTH recharge, credit card bills, grocery bills, travel ticketing, online shopping
and even educational institutes fee payments through this channel.
8. MOBILE BANKING:
Mobile banking is the act of doing financial transactions on a mobile device (cell phone, tablet,
etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell
phone or as complex as a client paying bills or sending money abroad. Advantages to mobile
banking include the ability to bank anywhere and at any time. Disadvantages include security
concerns and a limited range of capabilities when compared to banking in person or on a
computer.
9. SMART CARD/STORE VALUE CARD:
A smart card, typically a type of chip card, is a plastic card that contains an embedded computer
chip–either a memory or micro-processor type–that stores and transacts data. This data is
usually associated with either value, information, or both and is stored and processed within the
card's chip.
The card data is transacted via a reader that is part of a computing system. Systems that are
enhanced with smart cards are in use today throughout several key applications, including
healthcare, banking, entertainment, and transportation. All applications can benefit from the
added features and security that smart cards provide. According to Euro smart, worldwide smart
card shipments will grow 10% in 2010 to 5.455 billion cards. Markets that have been
traditionally served by other machine readable card technologies, such as barcode and magnetic
stripe, are converting to smart cards as the calculated return on investment is revisited by each
card issuer year after year.
10. GREEN CHANNEL COUNTER:

11. E-TICKETING:
An electronic ticket (commonly abbreviated as e-ticket) is a digital ticket. The term is most
commonly associated with airline issued tickets. Electronic ticketing for urban or rail public
transport is usually referred to as travel card or transit pass. It is also used in ticketing in the
entertainment industry.
An electronic ticket system is a more efficient method of ticket entry, processing and marketing
for companies in the railways, flight and other transport and entertainment industries. On 1 June
2008, the industry moved to 100% electronic ticketing and the paper ticket became a thing of the
past. Apart from substantial cost savings for the industry of up to US$3bilion per year, ET
is also more convenient for passengers who no longer have to worry about losing tickets and can
make changes to itineraries more easily. United Airlines was the first airline to issue electronic
tickets, back in 1994. A decade later however, only 20% of all airline tickets were electronic.
The industry was missing out on an opportunity to save costs and make travel for passengers
easier. In June 2004, IATA set an industry target of 100% ET in four years. At the time, many
believed this was an unrealistic goal. Evolving standards, uncertainty about the return on
investment and scepticism about the customer acceptance of paper in parts of the world were
some of the reasons why e-ticketing hadn’t taken off.

12. DEMAT SERVICE:

In India, shares and securities are held electronically in a dematerialized (or "Demat") account,
instead of the investor taking physical possession of certificates. A Dematerialized account is
opened by the investor while registering with an investment broker (or sub-broker). The
Dematerialized account number is quoted for all transactions to enable electronic settlements of
trades to take place. Every shareholder will have a Dematerialized account for the purpose of
transacting shares.
Access to the Dematerialized account requires an internet password and a transaction password.
Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the
Dematerialized account are automatically made once transactions are confirmed and completed.

13. ONLINE DEMAND DRAFT:

A demand draft is a negotiable instrument similar to a bill of exchange. A bank issues a demand
draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a
certain sum to the specified party (payee).
A demand draft can also be compared to a cheque. However, demand drafts are difficult to
countermand. Demand drafts can only be made payable to a specified party, also known as pay
to order. But, cheques can also be made payable to the bearer. Demand drafts are orders of
payment by a bank to another bank, whereas cheques are orders of payment from an account
holder to the bank.
14. Unified Payments Interface (UPI)
Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single
mobile application (of any participating bank), merging several banking features, seamless fund
routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request
which can be scheduled and paid as per requirement and convenience. Each Bank provides its
own UPI App for Android, Windows and iOS mobile platform(s).
15. OTHER E-SERVICES:

SECURITY ISSUES OF NET BANKING

The Internet has made banking, shopping, and conducting other financial transactions online
quite convenient. But when it comes to your money, you want to make sure your transactions are
safe.
Security of a customer's financial information is very important, without which online banking
could not operate. Presently, Internet banking customers only need a computer with access to the
Internet to use Internet banking services. Customers can access their banking accounts from
anywhere in the world. Each customers is provided a login ID and a password to access the
service. It is indeed easy and convenient for customers.
However, the use of password does not provide adequate protection against Internet fraud such
as phishing. The problem with password is that when it has been compromised, the fraudsters
can easily take full control of online transactions. In such cases, the password is no longer works
as an authentication token because we cannot be sure who is behind the keyboard typing that
password in.
However, easy access and convenience should not be at the expense and mercy of the security of
information. This is important in order to ensure the confidentiality of information and that it is
not being manipulated or compromised by the fraudsters.
In this lesson, we will review strategies you should employ when dealing with money and the
Internet. You will learn how to make sure a website is secure, including checking the SSL
certificate. In addition, you'll learn the steps you need to take to make shopping online a safe
and enjoyable experience.

TYPES OF FRAUDS
Nowadays, the nature of attacks is more active rather than passive. Previously, the threats were all
passive such as password guessing, dumpster diving and shoulder surfing. Here are some of the
techniques used by the attackers today:
 Trojan Attack.
The attacker installed a Trojan, such as key logger program, on a user’s computer. This happens when
users visited certain websites and downloaded programs. As they are doing this, key logger program is
also installed on their computer without their knowledge. When users log into their bank’s website, the
information keyed in during that session will be captured and sent to the attacker. Here, the attacker uses
the Trojan as an agent to piggyback information from the user’s computer to his backyard and make any
fraudulent transactions whenever he wants.
 Man-in-the-Middle Attack.
Here, the attacker creates a fake website and catches the attention of users to that website. Normally, the
attacker was able to trick the users by disguising their identity to make it appear that the message was
coming from a trusted source.
Once successful, instead of going to the designated website, users do not realize that they
actually go to the fraudster’s website. The information keyed in during that session will be
captured and the fraudsters can make their own transactions at the same time.
 Phishing.
One of the primary methods a hacker gains access to account information is through phishing, or
tricking the victim into giving up the information voluntarily. A hacker might send an email or
even call, pretending to be a representative of the bank and informing you about some
irregularities with your account. All you need to do to sort things out is to provide your password
or other account information to verify your identity. If you ever receive a communication that
appears to be from your bank and requests this type of information, contact your bank by phone
immediately. Do not give out account information to a caller, and do not click any links provided
in any e-mails that claim to be from your bank. You should also ensure that any employees with
access to the company’s accounts follow the same procedures.
 Spyware.
Spyware is the number one way that online banking credentials are stolen and used for
fraudulent activities. Spyware works by capturing information either on your computer, or while
it is transmitted between your computer and websites. Often times, it is installed through fake
“pop up” ads asking you to download software. Industry standard Antivirus products detect and
remove software of this type, usually by blocking the download and installation before it can
infect your computer.
 VIRUSES.
Viruses are designed to compromise your computer systems, and allow others to gain access to
your files, etc. This is different than spyware in that a virus may search for information
considered to be of value, where spyware will wait for input or action from whomever is using
the computer. A system that is compromised may be used to attack other systems, denying
people legitimate access to services. An example would be the recent activities of the group
called “Anonymous.” This group took over computer systems around the world, and used them
to launch attacks on websites. These types of attacks are called “denial of service” attacks. One
of the most common scenarios with viruses is where they will discover financial data such as
payroll files, bank account information, and credit card information. This information is then
transferred to criminals who sell it on the black market, or worse – use it for blackmail.
Criminals can get anywhere from pennies to hundreds of dollars for each piece of information,
depending on what it is and how they can exploit it.

 Hacking.
Hacking works similarly to viruses. A “hacker” uses software to probe for vulnerabilities, and
then uses programming techniques, software utilities, or system commands to exploit the
vulnerability. The primary objective is to gain access to your system. Once this access is
obtained, you can think of it like a burglary – they search for anything of value and often times
leave damage behind. More threatening are those hackers who simply take control of your
system and wait, to see what information becomes available or what other systems they can gain
access to.
 Identity Theft –
Identity theft refers to all types of crime in which someone illicitly obtains and uses another
person's personal data through deception or fraud, typically for monetary gain. With enough
personal information about an individual, a criminal can assume that individual's identity to carry
out a wide range of crimes. Identity theft occurs through a wide range of methods—from very
low-tech means, such as check forgery and mail theft to more high-tech schemes, such as
computer spyware and social network data mining. The following table1 illustrates well-known
social Web sites that have been attacked.
 Spam:
Spam is an electronic 'junk mail' or unwanted messages sent to your email account or mobile
phone. These messages vary, but are essentially commercial and often annoying in their sheer
volume. They may try to persuade you to buy a product or service, or visit a website where you
can make purchases; or they may attempt to trick you into divulging your bank account or credit
card details.

STEPS TO SECURE ONLINE BANKING:

When is a website secure for financial transactions?
Before sending any sensitive or financial information online, you want to know that you are
communicating with a secure site. Secure sites make sure all information you send is encrypted
—or protected—as it travels across the Web. The https address heading and your browser's
security symbol are two signs indicating you are on a secure site.
 Web addresses either begin with http or https. If the address is https, the information
you send to it is encrypted and will look like gibberish if intercepted by cybercriminals.
  Your browser will use a security symbol or lock to indicate that the browser verifies
that the website is a secure site. As seen in the examples below, the look of each
browser's symbol can be slightly different, and it is usually located in the address bar.

Security alerts and the SSL certificate

Secure sites have an SSL certificate. An SSL certificate does two things. First, it acts like
a virtual passport or driver's license. It means, I am who I say I am. Second, it enables
encryption. If a site does not have an SSL certificate, the address will begin with http instead of
https, and your browser will not show a lock symbol. If it has an SSL certificate, you can access
it by clicking your browser's lock.
What should I look for on an SSL certificate?
The following is an example of an SSL certificate accessed by Firefox. Your browser's SSL
certificate may look different from Firefox's, but you should have access to the same
information.
1. Issued To: Check here to make sure the website you are doing business with matches the
website on the certificate.
2. Issued By: Make sure the certificate authority that issued the SSL certificate to the
website is trustworthy. There are many different certificate authorities, and like all companies
some are more trustworthy than others. Verifiable SSL certificate authority companies you are
likely to see include VeriSign, RSA Data Security, Thawte, Geotrust, GoDaddy, and Comodo.
3. Validity: Make sure the SSL certificate has not expired. If it's expired, your information is not
guaranteed to be encrypted.

TEN STEPS TO MINIMIZE SECURITY ISSUES:

1) Install Latest Security Software: Prevention is better than cure and the same is true for all
online transactions. The World Wide Web is full of malware, spam and spyware and the best
protection to avoid your security being compromised is to use good antivirus software. One can
also seek to purchase a full version of protection software rather than an anti-virus which can
guard against phishing, malware and Trojans.
2) Use Auto Update for All Software: If you thought your security on the internet was not at
risk thanks to all the protective software that you may have installed, think again. Even a small
glitch in any of the software being used actively can lead to possible hacking attempt. The most
commonly hacked software includes web mail clients and web browsers. Make sure that you
always have updated to the latest version of your browser and mail clients like thunderbird and
Firefox. Web browser companies release patches as updates regularly to cover any such security
glitch in the software. If you find it hard to manually check and update their software, the best
way is to keep the auto update option enabled for all software in your computer.
3) Look for Encryption Signs: Before entering any confidential information or sensitive data on
any webpage, check if the website us using proper encryption. Encryption is a security measure
that helps protect data while travelling over the various networks on the internet. The basic sighs
of encryption include an internet protocol or url address starting with https (where s stands or
security) as well as a sign displayed a closed padlock located in the right corner of the screen.
4) Use Different Passwords: A recent study has revealed that majority of the people use
common passwords for a number of transactions including sensitive transactions like net banking
and credit cards for the convenience of recollecting. Using the same password makes you at high
risk, as if hackers can somehow get access to one password, they would virtually have access to
all your accounts. The best way to keep you safe in the virtual world is to use unique passwords
for different transactions.
5) Cash on delivery option: If any sites are offering cash on delivery option, don't hesitate to
use itas it is a good safety tip at no cost. Many sites give this option, but many of us ignore it
mainly because of our carelessness in going through all details.
6) Dealing with Offers: You might be getting lot of promotional mails and coupons as mails
from retail companies. But while utilizing such offers, it is recommended to go directly to the
seller site rather than entering details in the coupon link, which will be usually sent by third
parties.
7) Check Website's Digital Certificate: Before doing any transaction from online retailers and
merchant websites, make sure to check for safe digital certificates that can authenticate the
website. Independent services like VeriSign for example is a popular authentication service
provider which helps users to make sure that the website they are dealing with is genuine and not
some fraudulent imposter.
8) Avoid Using Public Computers: Always use personal computers or electronic gadgets like
phones or tablets to complete any financial transaction over the internet. Never use any public
computers or your friend's mobile for such sensitive transaction as their security may have been
compromised. Also make sure you always connect to the internet using a secured Wi-Fi
connection which is password protected. Doing financial transactions over a public Wi-Fi
connection is highly unsafe and not recommended.
9) Stay Away from Phishing Emails Seeking Confidential Information: Any promotional
mails from your bank or any third party websites or vendors seeking your sensitive banking
information must be ignored as spam. A lot of innocent people have been trapped by such
phishing websites and emails in the past coming in the name of banks, RBI, IT department etc.
Any mail seeking your banking information by offering lucrative lottery or content winnings
must never be encouraged.
 METHODOLOGY

TITLE: - A STUDY ON GROWTH OF MOBILE BANKING IN INDIA

DURING COVID -19
Scope of the study is limited to the customers of mobile banking services in India during Covid-
19. The study is confined to a period from March 2020 to September 2020 and its impact on
Mobile Banking Services.

For the present study, the researcher has used both primary and secondary data to collect the
necessary information’s. Primary data is collected from structured questionnaire and interview
method and secondary data are collected from peer reviewed journals, books and relevant
websites. The study is conducted on the sample size chosen for the study of respondents, who
uses digital payments to do their banking transactions. Statistical tools used for the study are
frequency, percentage, and mean method.
The questionnaire was administrated with a sample size of 220 respondents selected by applying
simple random sampling method. In the present study, both the primary data and secondary data
have been used. The study is largely based on primary data. Necessary secondary data also have
been collected from various sources like newspaper, magazines and websites. The collected data
are analysed by applying appropriate statistical tools like t-test, Chi square test and ANOVA test.
SOURCES OF DATA
Secondary data have been collected through online articles on livemint, economic times, RBI
reports, journals, newspapers etc. to review the literatures and understand theoretical backdrop of
mobile banking in India, both Pre COVID-19 and During Covid-19.

DURATION OF THE STUDY

The study duration is the time taken to complete data collection or it takes account the time Since
inception of protocol or design of study to end of data collection. The duration of the Study was
from July, 2020 to September, 2020.

STATEMENT OF THE PROBLEM

We are a large cash economy: in fact India is the second largest producer and consumer of
currency in the world, next only to china. Cost and Longevity are important considerations in
currency management. Producing such a large amount of currency is expensive. Both the
Government and RBI are keep on moving India towards a less cash economy by encouraging
people to shift from cash to electronic payments for all transactions. Digital payments ensure
accountability in all the transactions. Since everything is digitally recorded, there is always a way
to verify and track transactions. When using cash payments, it could be difficult to hold anyone
responsible for any additional expenses.
While India must fully embrace cashless transactions to embark on the transition to a super
economy in the coming years, there are still some hurdles to overcome. With IoT and artificial
intelligence, it's also important to have a sustainable and lucrative business model that caters to
the new age digital ecosystem with a robust cyber security system. Although the challenges are
many, a good start is halfway done and the government is already preparing for a safer and
brighter future without money. Sectors that will boost digital payments include small grocery
stores, online money transfer, OTT (over-the-top), online gaming, online education, ATM
withdrawals and broadband usage.
In today’s highly technical world, technology plays a vital role. Most of the people prefer latest
technology rather than manual systems. This gives a major impact on information and
technology field. Even in banking sector also many changes have occurred from the past few
years. Majority of the customers prefer online payment modes instead of traditional payment
method. Due to Covid-19, the usage of digital payment system has increased tremendously. The
impact of Covid-19 has forced many of the customers to go for online payments rather than
direct payment systems. Digital payment system is very useful to all of the users. There will be
lot of benefits from digital payment system, but at the same time, customers also face some
difficulties from this system. Hence, this gave me an opportunity to study the impact of Covid-19
on digital payment system: with special reference to women customers of Mangalore City.

DATA ANALYSIS
Table-1 Demographic profile of the respondents
Table 1. shows that majority (42.7 per cent) of the respondents belong to the age group of below
30 years, majority (61.4 per cent) of the respondents are male, majority (59.1 per cent) of the
respondents are married, majority (45.5 per cent) of the respondents are finished their Post
Graduate degree, majority (50.9 per cent) of the respondents are private employee, majority
(35.5percent) of the respondents earn income Above Rs. 30,000.

Table-2 Paired T-test for mode of payment before lockdown and during lockdown
Paired Samples Correlations
N Correlation Sig.
Pair 1 Vegetables & Vegetables 220 .610 .000
 Pair 2 Groceries & Groceries 220 .705 .000
Pair 3 Medicines & Medicines 220 .672 .000
Pair 4 Recharge & Recharge 220 .656 .000
Pair 5 Bill payments & Bill payments 220 .573 .000
Pair 6 Hotels & Hotels 220 .644 .000
Pair 7 Other & Other 220 .662 .000

Table 3 - T test on Mode of Payment – Changing behaviour before lockdown and during
the lockdown
H0 – There is no significant difference between the mode of payment while purchasing the
product of the respondents before lockdown and during lockdown period.

Source: Primary Data

This table reveals the relationship between payment done before lockdown and during the
lockdown period.
For vegetables, groceries, medicines, recharge, bill payments, payment of hotels, others category
of payments are less than the table value. As a result, null Hypothesis is rejected. So, Alternative
Hypothesis is accepted. It concludes that there is a significant difference of mode of payment
between before and during the lockdown period.

The Effect of COVID-19 on Mobile Banking

M-banking will be the new normal to many industries and businesses after COVID -19. It is very
challenging for many countries as it was in 2008 crisis, we need to accept the digital change and
innovate the way of transaction with the new M-banking application that emerging Fintech
company serves. Banks need to build the trust, create the digital and safe environment for digital
banks, make customers aware with the helpful use of it.
Due to shut down there was very less physical transaction done as it was not safe to withdraw
money and even for banks to accept deposits. RBI report says, ATMs stood at over 91% of their
full capacity which means there was need to refill the cash in 91% of machines. Slowdown in the
deposits grew up to 7.98%. According to RBI, 15.5 lakh crore of outstanding debt in the market
has been affected, retail and wholesale trading were hault, more than 19 Sectors were affected.
Top five affected sector were port and services, aviation, construction, mining and mineral,
retailing done by corporate all sectors affect banking at very high rate.
We are living in a digital world and India being a developing country here banks had a very
advantage of promoting mobile banking, although India is having online banking internet
infrastructure since very long but it was adopted by majority of customers that bank managed
with them. Banks are now supporting customers guiding them personally for their needs. Many
people who were reluctant to move to mobile banking application are now considering the shift
as an easy mode. Mr. Niraj Mittal says, there has more 29% more transaction in Q1 2020 from
Q1 2019 as corporate and retailer have higher issuance rate from bank accounts to mobile
wallets.
Developing countries like India are very beneficial as more and more Fintech company are
investing in banks and with the help of their internet infrastructure and technology banks will be
able to serve customers with better facility and more secured transactions. In this new normal
period, we are experiencing a new network environment where everything is available on our
fingertips. We are seeing much faster and reliable transaction pattern. Mobile banking has
brought a very significant increase in number of users after lockdown as mobile application has
been more customized and made more user friendly like Paytm, Yono (SBI), PayZapp and many
more.
(RBI, 2016) Source: https://www.rbi.org.in/scripts/NEFTView.aspx
M-banking volume of transactions in Jan 2020 was 14,402.70 lakh and in June it shooted up to
16,188 lakh volume of transaction. (Source: RBI Combining all 354 banks of India recognized
by RBI of Public and Private sector)
This figure shows is that there is an increase in amount of Rs.7801.31 lakhs from pre-COVID
and during COVID which is June 2020.
A report from PWC predicts that, the overall conversion rate of customer from offline to online
will increase at greater speed. The acquiring of money will 100% happen through payment
gateways and companies like Razor pay and Paypal will offer to tie up small stores to increase
their volume of transaction, as all the daily necessity transaction are only happening online with
help of m-banks. It will also help to build more stronger payment infrastructure that is more
secured and reliable in means of transfer and transaction. UPI, IMPS and BBPS has shown more
than 50% increase in number of transactions. M- banking has made our lives easier to meet our
daily requirement and for MSME immediate fund transfers in just a matter of 5 minutes.
From the above graph we can infer that there has been a increase of 4% in duration of 4 months
i.e. January to April. The major reason after lockdown in march as it shows in just span of 1
Week 1% users have enrolled themselves to online payment platform.
(Keelery, 2020) India is the second largest base for internet users. From the above graph we can
depict that from 2015 the number of users having mobile internet is increasing at 16% inthe year
2015-16 and so on in further years. This graph also tells us the estimate of users in

(Asher, 2020) According to a report by MCKinsey, there will be 40% increase in the internet
mobile users. We can say more and more of internet user are using internet and making use of
mobile internet to use various facilities like, m-banking, social media, utility tools and many
more. Reports by Economics time suggests that inspite of rising cost of internet people are meant
to opt for it as a basic necessity now a days. They say that subscribers to internet will be 835
Million by end of year 2023. Mobile internet usage is increasing at a rate of 152% per annum.
The government promoting Jan Dhan Yojana is a mass financial inclusion programme due to
which the number of banking accounts have doubled in numbers after 2011 and around 80% of
the banks were opened using smart phone and mobile internet. (Source: Statista)
India is a country of vast population, there are many smartphone companies. Smartphones have
widely offered various application for mobile banking and facilitating other digital services
including education, healthcare, financial daily book keeping and many more. The digital
services on smartphones covering various sectors has been very user friendly and rapidly
increasing its reach. According to the report by Economics times Digital banking services has
been playing a very crucial role in response to COVID 19. Studies say that both rural and urban
unfortunately spend (25 – 26%) same amount of their budget on smartphones and to opt it
services.
World’s Largest Digital Literacy Programs are run by Indian organization which led people to
adapt new technology. Programs like Pradhan Mantri Grameen Digital Saksharta Abhiyan
(PGMDISHA) and E-Kranti have been promoted with great initiative under the umbrella of
Digital India which provides, M-banking, Digital Agriculture, Healthcare, Education, Passport
and various other services through smartphones. This effort has increased the number of smart
phone base in India after launch of Digital India Programme.
According to a report of Gadget 360 NDTV (Studio, 2020), there has been 15% increase in the
smartphones market after 2018. A study of techARCh, states that in December 2019 almost 77%
of Indian were having smartphones and they are using all the wireless services. There are top
brands acquiring 25 to 41% of market by offering different range of smartphones from budget
phone to luxury phone brands. Factors like good quality, budget friendly and new features attract
the customer a lot.

Growth of Mobile Banking in India

Growth in M-Banking Transactions

Source: RBI

According to the above data from RBI Reports, it can be observed that the growth in the number
of mobile banking transactions in the years 2012-2014 have been very minimal. But after the
launch of the Digital India program in the year 2015, there was a sudden increase in the number
of transactions i.e., 386.6mn in 2015-2016, almost double than that of the previous year i.e.,
171.9mn transactions in 2014-2015. Later in the year 2016-2017 mobile banking transactions
grew from 386.6mn transactions in 2015-16 to 976.85mn transactions. The post demonetization
period has shown increasing trends in the number of mobile banking transactions when
compared to the pre demonetization period. It is believed that demonetization was one of the
catalysts for mobile banking in India. Followed by the COVID-19 pandemic in India, Mobile
Banking transactions in the month of Jan 2020 were 14,402.70 lakh (1440.27 mn) and in June it
shooted up to16,188 lakh volume of transaction. The total number of transactions from Jan 2020
to June 2020 were 84602 lakhs (8460.2mn) (Source: RBI Combining all 354 banks of India
recognized by RBI of Public and Private sector). Hence COVID-19 is considered as one of the
largest catalysts after demonetization to promote the adoption of mobile banking in India.
 CONCLUSION

Mobile banking has completely revolutionized the banking infrastructure in India. It was
introduced in the early 21st century with limited operations, but over the years with the
advancements in the fields of information and technology, mobile banking is now emerging as a
new normal in the banking infrastructure. Mobile banking has been successful in catering to the
needs of the customers with minimal drawbacks and has provided them with customer
satisfaction. Factors such as increasing penetration in the smartphone and internet users, Ease of
accessibility, Convenience & security in conducting digital transactions have proven to be the
building blocks for the promotion of mobile banking services in India. For countries like India,
Mobile banking can be used as a great opportunity to develop the banking infrastructure as
34.33% of its population is constituted of the younger generation who are well versed with using
the digital payment platforms such as mobile banking & e-wallets. Smartphone & Internet
Penetration is regarded as a backbone for the mobile banking in India. It is projected that the
internet subscribers will reach 835 Million by end of year 2023 which also means that the mobile
internet usage is increasing by nearly 152% per annum Being the second largest smartphone
market in Asia, India has a huge potential for adopting mobile banking as internet enabled
smartphones have proven to be very efficient in conducting safe virtual banking transactions.
Various initiatives of the government Such as Pradhan Mantri Grameen Digital Saksharta
Abhiyan (PGMDISHA) and E-Kranti under the Digital India Program have doubled the number
of bank accounts opened using smartphones.
COVID-19 Pandemic has wrecked the economy and affected the Export Import services,
aviation industry, construction industry, mining and mineral industry, & the retail industry of all
the corporate sectors which have further affected the banking infrastructure very drastically due
to the nationwide lockdown. The pandemic has also created fear in the minds of the people as it
is believed that the currency notes could transmit the deadly virus. This created greater
difficulties for the common man to conduct transactions. Mobile banking has been very helpful
in the times like COVID-19 as it has been successful in promoting the social distancing policies
as well as providing 24/7 banking facilities to their customers. COVID-19 is the second catalyst
after demonetization which has increased the shift of the banking customers from the traditional/
physical banking to digital platforms like mobile banking and mobile wallets. The Study has
found out that that there was an increase of 4% in the shift of the people to online payment
platforms from Jan 2020 to April 2020. Mobile banking applications such as Google Pay, ICICI
imobile, SBI Yono & mobile wallets such as Paytm have seen a greater percentage of increase in
the number of transactions. The Mobile banking transactions have increased by 2439.88millions
in 2019-2020 (Jan 2020 to June 2020) from 6200.32mn in 2018-2019 (RBI). COVID-19 has
prepared the Indian banking infrastructure to continue its operations through mobile & online
banking services. This will also insure the banks against any further unprecedented pandemics
and lockdowns as well as help them to maintain its overhead costs.

SUGGESTIONS
The few suggestions of the study are as follows:

 Bank should concentrate more on server and connectivity related issues. So that without
any problem, one can get the benefits.
  If any new techniques are installed, same should be educated to the customers. Hence,
they will get the up-to-date information.
 Bank should conduct some workshops to their customers, this helps the customers to
discuss their problems and they will get the solutions at the right time.
 Customers are having the fear of frauds (hackers); hence the banking system should give
awareness to the customers, not to share their banking details, pin numbers, OTP and so
on.
 The number of credit card users are very less compared to debit card, because of the fear
of hidden charges, hence the bank should give detailed instructions of the bank charges
applicable to credit cards.

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[9] https://www.hindustantimes.com/
[10] https://en.wikipedia.org