SBI Soubika

8/10/2019 SBI Soubika

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SBI ONLINE SAVINGS BANK ACCOUNT

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CHAPTER 1

COMPANY PROFILE


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1. INTRODUCTION TO STATE BANK OF INDIA:

1.1BRIEF PROFILE OF ORGANIZATION:

ORIGIN, ESTABLISHMENT & AIM OF THE COMPANY

The origin of the State Bank of India goes back to the first decade of the nineteenth

century with the establishment of the Bank of Calcutta in Calcutta on 2nd June 1806. Three

years later the bank received its charter and it was re-designed as the Bank of Bengal (2nd

January 1809). A unique institution, it was the first joint-stock bank of British India

sponsored by the Government of Bengal. The Bank of Bombay (15th April 1840) and the

Bank of Madras (1st July 1843) followed the Bank of Bengal. These three banks remained at

the apex of modern banking in India till their amalgamation as the Imperial Bank of India on

27th January 1921.

State Bank of India (SBI) is the largest banking and financial

services company in India. It is a state-owned corporation with its headquarters in Mumbai,

Maharashtra. The bank traces its ancestry to British India, through the Imperial Bank of

India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank

in the Indian Subcontinent. Bank of Madras merged into the other two presidencies banks

Bank of Calcutta and Bank of Bombayto form the Imperial Bank of India, which in turn

became the State Bank of India. The Government of India nationalized the Imperial Bank of

India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State

Bank of India. In 2008, the government took over the stake held by the Reserve Bank of

India. SBI is ranked #292 globally in Fortune Global 500 list in 2011.

SBI provides a range of banking products through its vast network of branches

in India and overseas, including products aimed at non-resident Indians (NRIs). The State

Bank Group, with over 16,000 branches, has the largest banking branch network in India. SBI

has 14 local head offices situated at Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati

(North East Circle), Bhuwaneshwar, Hyderabad, Chennai, Trivandrum, Bangalore, Mumbai,

Bhopal & Ahmadabad and 57 Zonal Offices that are located at important cities throughout

the country. It also has around 130 branches overseas.


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It aims to retain the banks position as the premier Indian financial services. It also aims to be

a group with world class standards and significant global business commitments to excellence

in customer, shareholder and employee satisfaction so as to play a leading role in expanding

and diversifying financial services while continuing emphasis on its development banking

role.

KEY DATES:

1806: The Bank of Calcutta is established as the first Western-type bank.

1809: The bank receives a charter from the imperial government and changes its name to

Bank of Bengal.1840: A sister bank, Bank of Bombay, is formed.

1843: Another sister bank is formed: Bank of Madras, which, together with Bank of Bengal

and Bank of Bombay become known as the presidency banks, which had the right to

issue currency in their regions.

1861: The Presidency Banks Act takes away currency issuing privileges but offers incentives

to begin rapid expansion, and the three banks open nearly 50 branches among them by

the mid-1870s.

1876: The creation of Central Treasuries ends the expansion phase of the presidency banks.

1921: The presidency banks are merged to form a single entity, Imperial Bank of India.

1955: The nationalization of Imperial Bank of India results in the formation of the State

Bank of India, which then becomes a primary factor behind the country's industrial,

agricultural, and rural development.

1969: The Indian government establishes a monopoly over the banking sector.

1972: SBI begins offering merchant banking services.

1986: SBI Capital Markets is created.

1995: SBI Commercial and International Bank Ltd. are launched as part of SBI's stepped-up

international banking operations.

1998: SBI launches credit cards in partnership with GE Capital.

2002: SBI networks 3,000 branches in a massive technology implementation.

2004: A networking effort reaches 4,000 branches.


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JOURNEY AND VISION OF SBI

The State Bank of India, the countrys oldest Bank and a premier in terms of balance

sheet size, number of branches, market capitalization and profits. The bank is entering into

many new businesses with strategic tie ups

a)

Pension Funds,

b) General Insurance,

c) Custodial Services,

d)

Private Equity,e) Mobile Banking,

f)

Point of Sale Merchant Acquisition,

g) Advisory Services,

h) Structured products etc.

The Bank is forging ahead with cutting edge technology and innovative new banking models,

to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and

proposes to cover 100,000 villages in the next years. It is also focusing at the top end of the

market, on whole sale banking capabilities to provide Indias growing mid / large Corporate

with a complete array of products and services. Today, the Bank is the largest provider of

infrastructure debt and the largest arranger of external commercial borrowings in the country.

It is the only Indian bank to feature in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer friendly

processes to help improve the total customer experience. With about 8500 of its own 10000

branches and another 5100 branches of its Associate Banks already networked, today it offers

the largest banking network to the Indian customer.

The Bank is also in the process of providing complete payment solution to its clientele with

its over 8500 ATMs, and other electronic channels such as Internet banking, debit cards,

mobile banking, etc. With four national level Apex Training Colleges and 54 learning

Centres spread all over the country the Bank is continuously engaged in skill enhancement


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of its employees. The bank is also looking at opportunities to grow in size in India as well as

internationally. It presently has 82 foreign offices in 32 countries across the globe.

It has also 7 Subsidiaries in India

a) SBI Capital Markets,

b)

SBICAP Securities,

c) SBI DFHI,

d) SBI Factors,

e)

SBI Life and

f) SBI Cards

It is in the process of raising capital for its growth and also consolidating its various holdings.In a recently concluded mass internal communication program termed Parivartan the Bank

rolled out over 3300 two day workshops across the country and covered over 130,000

employees in a period of 100 days using about 400 Trainers, to drive home the message of

Change and inclusiveness. The CNN IBN, Network 18 recognized this momentous

transformation journey, the State Bank of India is undertaking, and has awarded the

prestigious Indian of the YearBusiness, to its former Chairman, Mr. O. P. Bhatt in January

2008.

POSITION OF THE COMPANY

SBI is a regional banking behemoth and is one of the largest financial institutions in the

world. It has a market share among Indian commercial banks of about 20% in deposits and

loans. The State Bank of India is the 29th most reputed company in the world according to

Forbes. Also, SBI is the only bank featured in the coveted "top 10 brands of India" list in an

annual survey conducted by Brand Finance and The Economic Times in 2010.

The State Bank of India is the largest of the Big Four banks of India, along with ICICI

Bank, Punjab National Bank and HDFC Bankits main competitors.

SERVICES & PRODUCTS

a) Banking services

b)

NRI services

c) International banking


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d) Corporate banking

e)

Agricultural banking

f)

International banking

g) Advantage (Khata)

h)

Advantage plus (Khata plus)

i) CINB (Saral)

j) Privilage (Vyapar)

k)

Freedom (Vistar)

l) Electronic Vendor Finance

m)

Electronic Dealer Financen) Direct Debit

o) E-collection

SBI RETAIL BANKING

a)

Term Deposits

b) Recurring Deposits

c)

Housing Loan

d)

Educational Loan

e) Personal Loan

f) For Pensioners

g)

Against Mortgage of Property

h) Against Shares & Debentures

i) Plus Scheme

j)

Medi-Plus Schemek) Rates of Interest

SERVICES

a)

Access to multiple users

b) Account view / Statement

c) Funds Transfer

d)

Third party funds transfer (RTGS/NEFT)


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e)

Demand Draft request

f) Utility Bill Payment

g) Bulk transaction through file upload

h)

Direct and indirect tax payment

i) SMS/Email alerts

j) User hierarchy with discretionary access/rights to accounts

k)

MIS reports

l) Host to Host integration

m)

Demat View facility

BOARD OF DIRECTORS OF THE COMPANY

After the end of O. P. Bhatt's reign as SBI chairman on March 31, 2011, the post was

taken over by Pratip Chaudhuri, who was the former deputy managing director of the

International division of SBI. As of 06th February, 2013, following is the complete list of the

Board members:

SR.

NO.NAME DESIGNATION

1 Shri Pratip Chaudhuri Chairman

2 Shri Hemant G. ContractorManaging Director

3 Shri Diwakar Gupta Managing Director

4 Shri A. Krishna Kumar Managing Director

5 Shri S.Vishvanathan Managing Director

6 Shri S. Venkatachalam Director

7 Shri D. Sundaram Director

8 Shri Parthasarathy Iyengar Director

9 Shri Thomas Mathew Director

10 Shri Jyoti Bhushan Mohapatra Workmen Employee Director

11 Shri S.K. Mukherjee Officer Employee Director


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12 Dr. Rajiv Kumar Director

13 Shri Deepak Amin Director

14 Shri Harichandra Bahadur Singh Director

15 Shri Rajiv Takru Director

16 Dr. Urjit R. Patel Director

ASSOCIATE BANKS OF SBI

SBI has five associate banks; all use the same logo of a blue circle and all the associates

use the "State Bank of" name, followed by the regional headquarters' name:

1. State Bank of Bikaner & Jaipur

2.

State Bank of Hyderabad

3. State Bank of Mysore

4. State Bank of Patiala

5.

State Bank of Travancore

SYMBOL AND SLOGAN

The symbol of the State Bank of India is a circle and a small man at the center of the

circle (and not a key hole). A circle depicts perfection and the common man being the

center of the bank's business.

Slogans : "Pure banking nothing else"

Also includes : "With you - all the way" and : "the banker to every Indian"


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1.2NATURE OF THE PROJECT:

The title of the project is Study of launch of SBIsnew Tech product Online Savings

Bank account. This product was launched very recently i.e. on 4th December 2012,

since this launch was one of its kinds for SBI, and also that it relates to the use of

computer technology, a need was felt to study its process flow and make both the

employees of the bank as well as the customers aware about its benefits. It is basically a

research project aimed to find out how the product works, its current status in terms of

popularity, awareness etc and further to suggest measures to improve its popularity and

highlight its benefits amongst the common masses.

1.3BRIEF OBJECTIVES/ RESPONSIBILITIES ASSIGNED BY

THE PROJECT MENTOR:

Create awareness about SBI online savings account product.

Help customers open up accounts online.

Motivate customers to make least physical visits to the branch.

Help customers in case they face problems opening accounts online

Study the KYC guidelines

Encourage customers to fulfill all the KYC guidelines while opening their

accounts.

Assist in opening of lockers in the branch.

Make customers aware about other tech products like mobile banking,

internet banking, ATM cum debit card, etc. associated with the Savings

Bank Account.


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1.5BRIEF PROFILE OF STUDENT:

A Computer Science (CS) Engineer from Mahant Bachittar Singh College of

Engineering and Technology (MBSCET), Jammu, and currently pursuing MBAfrom The

Business School, University of Jammu.

Banking has always been my area of interest since childhood and I always wanted to do

my summer internship from the leading bank of Jammu and Kashmir. And this dream

came true with my wonderful experience at State Bank Of India during my summer

training for a period of 2 months.

PERSONAL INFORMATION:

a)

NAME: Ms. Soubhika Sharma

b) DATE OF BIRTH :20thJan 1990

c) EDUCATIONAL QUALIFICATION:B.E.(Hons), Computer Science

Currently pursuing MBA, from The Business School,

Jammu University

d)

E-MAIL ID:[email protected]

e)

CONTACT NO.: +9469211422

1.6BRIEF PROFILE OF PROJECT MENTOR AT THE BANK:

PERSONAL INFORMATION:

a)

NAME:Mr. Romesh Kumarb) EDUCATIONAL QUALIFICATION:Post Graduate, Commerce

c)

JOB PROFILE: Chief Manager. Currently serving at SBI, K M

Samba

d)

CONTACT NO.:+9469385011


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CHAPTER 2

FRAMEWORK OF STUDY

(INTRODUCTION)


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2.FRAMEWORK OF STUDY

2.1INTRODUCTION TO SAVINGS ACCOUNT

Savings accounts are one of the most popular deposit accountsfor individuals in India. In

such accounts, the depositor is normally issued a cheque book and debit cum ATM card and

the customer is allowed the flexibility of deposits of any amount and withdrawal of funds

from the account at any time. Although, most of the banks have rules for the maximum

number of withdrawals in a period and the maximum amount of withdrawal, yet no bank

strictly enforces these owing to competition in the banking circles. However, banks have

every right to enforce such restrictions if it is felt that the account is being misused as a

current account. These are the basic accounts used by public for savings and making

payments by cheques.

A savings account is basically a deposit account held at a bank or other financial institution

that provides principal security and a modest interest rate. Savings accounts are generally for

money that you don't intend to use for daily expenses. To open a savings account, simply go

down to your local bank with proper identification and address proof and ask to open an

account. Commercial banks (like ICICI, HDFC, etc.); co-operative banks (like Saraswat,

Cosmos, etc.), public sector banks (like State bank of India, Bank of India, etc.) and postal

departments accept deposits by way of opening savings bank account with them.
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The 'savings account' is generally opened in bank by salaried persons or by the persons who

have a fixed regular income. This facility is also given to students, senior citizens, pensioners,

and so on. Savings accounts are opened to encourage the people to save money and collect

their savings.

In India, savings account can be opened by depositing 100 to 5000. The savings account

holder is allowed to withdraw money from the account as and when required. The interest

which is given on savings accounts is sometimes attractive, but often nominal. These days the

banks open Savings Bank Account with zero balance also to attract more and more

customers. Further, as per financial inclusion initiative of the Govt. the banks are supposed to

open No Frill Accounts means accounts of poor population which are opened with zero

balance.

In India, at present, the rate of interest for savings account ranges between 4% to 6% per

annum. The interest rates vary as per the amount of money deposited (lying) in the savings

bank account, scheme opted, and its maturity range. It is also subject to current trend of

banking policies in a country.

The most common type of bank account, and probably the first account one will ever have

(after a checking account), is a savings account. Savings account allows one to keep his/her

money in a safe place while it earns a small amount of interest each month. These accounts

usually require either a low minimum balance, or may require no minimum balance at all.

This depends on thebank and the type of account.

Besides the fact that one will be less likely tospend it, putting ones money in a savings

account is safer because it is insured. If the home is robbed or burns down, ones money may

be lost forever. Banks andcredit unions,on the other hand, keep ones money in a locked and

fireproof safe. Banks insure ones money through the DICGC (Deposit Insurance and Credit

Guarantee Corporation). This means that even if the bank goes out of business (which is very

rare!) the money will still be there. When one puts his money into a savings account, it earns

interest. Interest is the money that bank pays, so that they can use your money to fund loans
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for other people. That doesn't mean you can't have your money whenever you want it,

though. That's just how banks make money -- by selling money! Basically, it works like this:

A person opens a savings account at the bank.

The bank pays him interest on the money that he deposits and leaves in that account.

The bank then loans that money out to other people, only they charge a slightly

higherinterest rate on the loan than what they pay him for his account.

The difference in interest that they pay to a person verses the interest they charge others is

part of how they stay in business. Interest on savings accounts is usually compounded daily

and paid monthly. The interesting thing about compounded interest is that the bank is paying

you interest on the money that it has lent to others. That means that if your account earns one

percent interest, then each day 1/365th of that one percent of the amount of money you have

in your savings account is then added to your total. This is how it is calculated:

Daily compounding = Principal (1 + interest rate/365)365

= (daily compounded amount)

INTEREST ON SAVINGS ACCOUNTS - IS IT REGULATED BY RBI?

Till 24/10/2011, the interest on Savings Fund accounts was regulated by RBI and it was

4.00% p.a. on daily balance basis. However, w.e.f. 25th October, 2011, RBI has deregulated

SB interest rates and banks are now free to decide the same within certain conditions imposed

by RBI.

WHICH BANKS ARE PAYING MAXIMUM INTEREST RATES ON SAVINGS

ACCOUNTS?

Sometimes a question is asked as to which is the best bank for opening a Savings account?

Frankly speaking there is no straight forward answer to this query, as all banks offer almost

similar facilities to Savings Bank account holders i.e. allowing deposit and withdrawals with

cheque book facilities. However, the customer service and rate of interest varies from bank

to bank and more so from Branch to Branch also. With the usage of ATM card, internet

banking, mobile banking facilities one needs to go to bank only on rare occasions.
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Therefore, now rate of interest is becoming a major deciding factor for opening a new

account. After deregulation by RBI of the Savings Bank interest, each bank is free to fix its

rate of interest on Savings Funds. On the very first day of deregulation, Yes Bank announced

the increase of Savings Fund Interest from 4% to 6%.

In December 2012, Competition Commission of India decided to take a look at the banking

sector of India. Most of the public sector banks offer common 4 percent interest rates even

though the Reserve Bank of India moved to an unregulated regime in October 2011.

For banks, current accounts (CA) and savings accounts (SA) are the steadiest and cheapest

source of funds. Banks usually target at least 30 percent of their total deposits from CA and

SA. Following information has been taken fromwww.siliconindia.com

a) YES BANK: SAVINGS ACCOUNT INTEREST RATE: 6 PERCENT

Yes Bank is a private bank in India. It was founded by Ashok Kapur and Rana Kapoor, with

the duo holding a collective financial stake of 27.16 percent. The bank provides a higher

return of 7 percent p.a. on Savings Account for balance more than 1 lakh & 6 percent p.a.

for balance up to 1 lakh.

b)KOTAK MAHINDRA: SAVINGS ACCOUNT INTEREST RATE: 6 PERCENT
http://www.siliconindia.com/http://www.siliconindia.com/


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Kotak Mahindra is an Indian financial service firm established in 1985. It was previously

known as Kotak Mahindra Finance Limited, a non-banking financial company.

From 1st November, 2011, the bank offers 6.0 percent interest p.a. on Savings Account

balance over 1.lakh and 5.5 percent p.a. on balance up to 1 lakh.

c) INDUSIND BANK: SAVINGS ACCOUNT INTEREST RATE: 5.50 PERCENT

IndusInd Bank offers 5.5 per cent for below 1 lakh and 6 per cent above 1 lakh savings

account deposits. IndusInd Bank Limited is a Mumbai based India new generation bank,

established in 1994. The bank offers commercial, transactional and electronic banking

products and services. Indusind Bank was incorporated in April 1994 by Dr. Manmohan

Singh the then Union Finance Minister.

d) CITIBANK: SAVINGS ACCOUNT INTEREST RATE: 7.25 PERCENT

Citibank provides 7.25 percent interest on amount below 15 Lakhs kept for tenure of 271 to

364 days. The average monthly relationship value requirement for this account is 2 Lakhs,

which includes balances across savings, term deposits, investments, insurance, outstanding

principal on home loan and Citibank Demat Account. Citibank, one of the major international

banks, is the consumer banking arm of financial services giant Citigroup.


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e) STATE BANK OF INDIA: SAVINGS ACCOUNT INTEREST RATE: 4.00

PERCENT P.A.

State Bank of India (SBI) is a multinational banking and financial services company

based in India. It is a state-owned corporation with its headquarters in Mumbai,

Maharashtra. As on December 2012, it had assets of $501 billion and 15,003

branches, including 157 foreign offices making it the largest banking and financial

services company in India by assets. SBI provides 4.00 percent interest rate per

annum on its savings account.

f)

ICICI BANK:SAVINGS ACCOUNT INTEREST RATE: 4.00 PERCENT P.A.

ICICI Bank provides 4.00 percent interest per annum on its savings account with a

minimum balance of 10, 000 for metro and urban cities, 5,000 for semi urban

and 2, 000 for rural areas. ICICI Bank Limited is an financial services company

headquartered in Mumbai, Maharashtra.


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2.2 HISTORY OF SAVINGS ACCOUNT

Savings accounts are one of the basic accounts individuals may open with a retail

financial intuition. These accounts function as storage of financial instrument, and pays

interest. The history of savings accounts dated back to the 1500s, when Amsterdamin

Hollandwas a prospering financially due to it being major shipping and trading city. As

there were often surpluses of cash, people looked for a place to store their liquid assetssafely. Cashiers were developed, providing a means of security to store money for a small

fee. The idea soon spread to other countries such as England. From England, these ideas

were carried over to America through English colonies. The idea of a financial institution

developed in Europe as early as the 18th century. In conjunction with the idea of cashiers,

this financial institution, in the form of savings banks, had the objective of providing a

secured savings institution to the population, regardless of social class.

Often than not, these institutions were created based on public initiative. In a few

recorded circumstances, socially dedicated individuals also created similar

institutionalized foundations to provide similar financial infrastructure for handling and

storing money. The known record of savings bank was said to be established in France in

1765 in the town of Brumuth. However, despite being the known first record of savings

bank, the idea of a savings institution was already suggested in England back in 1697.

Other known beginnings of financial institutions that provided savings accounts were


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savings bank in Hamburg, Germany in 1778, as well as in Berne, Switzerland in 1787.

The first known record in England itself was in 1799.

This later evolved into postal savings banks in 1861. The idea soon spread throughout the

whole world, including the United States which had a spurt of financial institutions

providing savings accounts. All these institutions set the foundation of what a basic

savings account of todays financial services.

2.3 FEATURES OF SAVINGS ACCOUNT

The main features of savings account in bank are as follows:

i. The main objective of savings account is to promote savings.

ii.

There is no restriction on the number and amount of deposits. However, in India,

mandatory PAN (Permanent Account Number) details are required to be

furnished for doing cash transactions exceeding 50, 000.

iii. Withdrawals are allowed subject to certain restrictions.

iv.

The money can be withdrawn either by cheque or withdrawal slip of the

respective bank.

v. The rate of interest payable is very nominal on savings accounts. At present it is

between 4% to 6% p.a in India.

vi. Savings account is of continuing nature. There is no maximum period of holding.

vii.

A minimum amount has to be kept on savings account to keep it functioning.

viii. No loan facility is provided against savings account.

ix. Electronic clearing System (ECS) or E-Banking is available to pay electricity bill,

telephone bill and other routine household expenses.


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x.

Generally, equated monthly installments (EMI) for housing loan, personal loan,

car loan, etc., are paid (routed) through savings bank account.

A savings account is an account provided by a bank for individuals to save money and earn

interest on the cash held in the account. A savings account can be used to save money for

specific expenses or for longer-term undefined goals, all while earning interest on the money

in the account.

2.4 ADVANTAGES OF SAVINGS ACCOUNT

Savings accounts are easy to obtain because they generally do not require a credit check.

They are a safe way to store money in a bank. Also, they often offer some small amount of

interest on the money stored in the savings account. The interest is generally less than that of

CDs or money market accounts, but more than offered for checking accounts. Interest is

usually 1 to 2 percent annually.

The advantages of savings account are as follows:

i.

Savings account encourages savings habit among salary earners and others

who have fixed income.

ii. It enables the depositor to earn income by way of savings bank interest.

iii.

Savings account helps the depositor to make payment by way of issuing

cheques.

iv. It shows income of a salaried and other person earned during the year.

v.

Savings account passbook acts as an identity and residential proof of theaccount holder.

vi. It provides a facility such as Electronic fund transfer (EFT) to other people's

accounts.

vii. It helps to do online shopping via facility like internet banking.

viii. It aids to keep records of all online transactions carried on by the account

holder.

ix. It provides immediate funds as and when required through ATM.

x. The bank offers number of services to the savings account holders.


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2.5USES

Some individuals use savings accounts to save up money for a specific goal, such as a downpayment on a home or a future vacation. Others have no specific plans for the money, but use

the account as a way to store their cash in a safe place while earning a return on it. Some

savings accounts are used as an emergency fund, allowing an individual or family to save

money safely to be used in case of emergency circumstances, such as job loss or

hospitalization. An ATM-cum-debit card can often be linked to a savings account, this card

can also be used at Point Of Sales machines to buy things at stores.

FINANCIAL INSTITUTIONS

Most banks, credit unions, and savings and loan associations offer savings accounts. The

financial institution offering savings accounts will generally use the money in savings

accounts to fund loans serviced by the bank, providing the income that is then used to pay the

interest accrued for savings accounts.

SAFETY

Savings accounts are considered extremely safe. In the U.S., they are backed by guarantees

by the federal government, which means that even if the bank fails, your money in a savings

account is insured up to $250,000 and will be returned to you.

2.6 DRAWBACKS

The major drawback of savings account is the lower interest rates associated with it (although

few banks do claim higher interest rates). Savings accounts offer limited use of the funds in

the account because they are generally not available for paying bills or buying items directly

but through cheques or debit cards. Some accounts have Internet access, which can be used to

move money from the savings account to other accounts, but some savings accounts require

the account holder to physically go to the bank in order to deposit or withdraw money.


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2.7 TYPES OF SAVINGS ACCOUNTS

Theamount of interest ones money earns in a savings account often depends on the type of

financial institution one has selected and the type of account. Banks and credit unions are

different animals. While banks are commercial businesses, credit unionsare typically non-

profit cooperative organizations that are organized for specific groups of people. For

example, state employees usually have access to a State Employees Credit Union. Typically,

loans are less expensive at credit unions, but interest rates may not always be as high as what

you can get at a bank. This isn't always the case, though. Currently, some credit union interest

rates are higher than what you will find at some banks. Sometimes credit unions also pay

interest on accounts that banks usually don't pay interest on, like checking accounts. But, you

have to be a member in order to open an account.

Banks usually offer two types of savings accounts:

a)

basic savings account, and

b)

a money market account.

The basic savings account(sometimes called a passbook savings account) will usually have

either no minimum balance requirement or a low one, but will offer a very low interest rate

(meaning your money won't earn that much). In April 2004, the average interest rate at banks

for basic savings accounts was less than one percent. A typical basic savings account lets one

withdraw his money whenever he wants.

Money Market accountsusually pay more money in interest, but will typically require one

to have more money in his account. There may be a limit to how many withdrawals one can

make in a month. Sometimes, in addition to the withdrawals, one can also write up to the

threechequeson a money market account each month.

Costs Involved

Sometimes, but not always, banks charge for not maintaining minimum stipulated balance in

a savings account. The fee may be low -- like a dollar a month -- or it may be higher or it

could even be based on your balance. For this reason, one should always shop around andcompare what different banks are offering.
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Things one should look at include:

Fees and services charges on the account

Minimum balance requirements (Some banks charge a fee only if you don't keep a

certain amount of money in your account at all times.)

Interest rate paid on your balance

WHAT HAPPENS WHEN ONE OPENS A SAVINGS ACCOUNT?

When one opens a savings account he gets a small book called a register(like a cheque book

register) where he can write his beginning balance(the amount he originally deposited) and

all of his future deposits and withdrawals. This tool helps him keep track of how much

money he has.

Each month, his bank (or credit union) will send him a statement of his account either in the

mail or bye-mail if he prefers. The statement will list all of his transactions as well as any

fees charged to his account and interest his money has earned. In order to make sure he didn't

forget to write down any withdrawals and/or deposits (and also to double-check the bank's

activities) he should go through each entry in his register and compare it with the bank's

statement. They should match up -- this is referred to as reconciling the account. If they

don't, he will need to find his mistake and correct it in his register (unless it is a bank error,

but that isn't very common). The only other thing is to remember to make deposits into the

account and sit back and watch the money grow.

2.8 WHY ARE SAVING ACCOUNTS SO POPULAR?

Savings accounts are very much popular for the following reasons:

a) EASY ACCESS TO A BANK SAVINGS ACCOUNT

Savings accounts offer easy access to the cash. In other words, ones money

is liquid(meaning he can make a withdrawal easily and quickly) in a bank savings account.

Note that savings accounts are not as liquid as checking accounts, because one can get money

from a checking account by simply writing a check.
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b) BANK SAVINGS ACCOUNTS GROW ONES MONEY

When one has money in a bank savings account, his money earns interest. This is a nice

feature. His bank savings account pays a rate of return on all the money in the account. That

means that he will get "paid" for keeping his money in the account. If he was not going to use

the money anyway, then getting paid a little is better than nothing. Bank savings accounts pay

one more on their money than checking accounts.

c) BANK SAVINGS ACCOUNTS ARE RELATIVELY SAFE

Bank savings accounts offer a safe placeto keep their money. Suppose that if one has

1,000 and if he is not going to use that money for another 3 months. He could do several

things with that money. He may carry it around with him, he could put it under his mattress,

or he could put it into a bank savings account.

The safest thing to do with his money is to put it into a savings account. If he carries the

money around with him, he might lose it. If the money is under his mattress, his house could

burn down or be robbed. However, if the money is in a bank savings account, his banking

institution is responsible for the safekeeping of that money. If the bank burns down, his

money won't go with it, and any reputable bank will not just lose his savings. Furthermore,

one earns interest on the money in a savings account. One surely doesnt earn interest on

cash that is sitting under his mattress!!!

2.9

SAVINGS BANK ACCOUNT RULES AND REGULATIONS:

i.As per the extant Reserve Bank of India (RBI) guidelines, which are mandatory,

photographs of all applicant(s) / Power of Attorney holders (i.e. who are authorized to

operate the account(s)) should be furnished to the bank.

ii.As per extant Government of India (GOI) guidelines, PAN / Form No.60/61 (Where

PAN is not available) is required to be furnished.


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iii.

Savings Bank A/c (SB A/c) cannot be opened for business purposes as per RBI

directives and hence SB a/c should be used to route transactions of only non-business /non-commercial nature. In the event of occurrence of such transactions or any other such

transactions that may be construed as dubious or undesirable, the Bank reserves the right

to unilaterally freeze operations in such accounts.

iv.

The balance in the special type of account must adhere to the minimum monthly /

quarterly average balance stipulation laid down by the Bank and communicated to you at

the time of opening of the account. Non-maintenance of such monthly/quarterly average

balance will attract applicable penalty on a monthly / quarterly basis and on a date

determined by the bank.

v.If there is no transaction by the account holder in the account continuously for 24 months,

the account automatically gets classified as a dormant / inoperative account whereupon

further debit / credit transactions are not permitted in the ordinary course. A request for

activation of the account has to be made by the customer and the customer is subject

afresh to KYC Compliance.

vi.Satisfactory conduct of the account entails maintaining sufficient balance to honor

cheques issued to third parties. If there are high incidences (i.e. more than 3 cheque

returns for want of funds) to the contrary, the Bank reserves the right to close the account

under intimation to the customer.

vii.

Any special instructions, both financial and non-financial in nature, like standinginstructions, stop payment instructions, issuance of cheque books, issuance of duplicate

ATM Cards / PIN etc. must be communicated in writing. Otherwise, it shall not be

binding on the Bank to comply with such instructions.

viii.

The bank will be sending through courier or post from time to time PIN mailers and any

other notices / correspondences. Hence, it is incumbent upon the applicant(s) to intimate

change in mailing address, if any, immediately without any loss of time. The bank will


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not be responsible for any loss, damage, or consequences for wrong delivery of the above

items arising out of non-intimation of change in mailing address.

ix.

The account number is to be quoted in pay in slips / cheques issued by the account holder

and in all the correspondences with the bank.

x.

The account holder(s) is / are expected to verify the entries made in the pass book and

draw the attention of the bank to any errors or omissions that might be discovered. The

bank does not accept any responsibility for any loss arising out of failure on the part of

the account holder to carry out verification of entries in the pass book and to point out

such error and / or omission within one month from the date of updation of pass book.

xi.Alterations, if any, on cheques are required to be authenticated by the drawers full

signature against each such alteration. The Bank reserves the right to refuse payment of

cheques that have been altered in any way unless the alteration is authenticated by the

drawer under full signature as per specimen on record with the Bank. Cheques should be

drawn in such a way as to prevent alteration after issue and the drawers signature should

be uniform with that on record.

xii.No overdrawing is permissible in accounts.

xiii.The bank has the authority to debit the accounts to recover any amount credited

erroneously.

xiv.Collection of outstation instruments entails collection charges. Disputes, if any, in

collection of cheques / instruments will be dealt with as per banks Cheque Collection

Policy.

xv.

Interest will be credited every six months on or about 1st September and 1st March

calculated on daily product basis. No interest will be allowed unless the amount accrued

during the half year amounts to Re.1/-


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xvi.

When a customer wants his / her operative account at one branch to be transferred to

another branch, he / she has to give his / her request in writing along with unused chequebooks. The bank will transfer the account to other branch and will issue new cheque

book.

xvii.Local cheques, etc., may be tendered for collection sufficiently early in the day as

required vis--vis the local clearing house times. Drawals against clearing cheques will be

normally permitted only against cleared balances as per clearing house rules.

xviii.Please change the PIN for ATM operations, frequently. Please dont keep the blank

signed cheque books. Keep the cheque books in lock and key.

xix.Pass book will be given to all SB account holders. If the customers want statement of

accounts, it will be issued on specific request and on payment of necessary charges.

xx. Immediate credit of outstation / local cheques up to Rs.15000/- is permitted to

satisfactorily operated Savings Bank account holders. For further details, contact your

branch.

xxi.Nomination facility is available.

xxii.The Bank is a member of Banking Codes and Standards Board of India and committed to

honor the covenants of its codes. Customers can get a copy from the branch and the same

is also available in the Banks website www.tmb.in. Similarly the Bank has a Fair

Practice Code and Policy on Deposits which are also available in the same manner.

xxiii.

The opening / operating / closing of any account are subject to the extant Know Your

Customer (KYC) guidelines drafted in line with the RBI norms.

xxiv.The Bank reserves the right to close account(s), which according to the Bank, is / are not

conducted satisfactorily, after due notice to the customers without assigning any reasons

thereof.


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xxv.

The Bank reserves to itself the right to alter, delete or add any of these rules at any time

without prior intimation to individual customers or to refuse to open an account or toclose any account. However such changes will be posted in the Banks website and in the

Notice Board of the branches.

xxvi.Opening of the Savings Bank Account tantamount to deemed acceptance of the aforesaid

rules and regulations as well as the fact of being informed about the various service

charges being levied by the Bank and the terms and conditions guiding related products

and service.

2.10 KNOW YOUR CUSTOMER (KYC) GUIDELINES:

Any person fulfilling account opening requirements may upon agreeing to comply with the

prescribed rules, open a Savings Bank Account, provided he/she furnishes proof of identity

and proof of address as required by the bank.

PROOF OF IDENTITY

i. Passport, if the address differs from the one mentioned in the account opening

form

ii. Voter ID Card, if the address differs from the one mentioned in the account

opening form.

iii. PAN Card

iv.

Govt./ Defense ID Card

v.

ID Cards of reputed employers

vi. Driving License


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vii.

Pension Payment orders (Govt./ PSUs), if the address differs from the one

mentioned in the account opening form

viii.

Photo ID Card issued by Post Offices. Photo ID card issued to bonafide students

of Universities/ Institutes approved by UGC/AICTE.

PROOF OF ADDRESS:

i. Credit card statement

ii.

Salary slip

iii. Income tax/ wealth tax assessment

iv. Electricity bill

v.

Telephone bill

vi.

Bank account statement

vii. Letter from a reputed employer

viii. Letter from a recognized public authority

ix.

Ration card

x. Copies of Registered leave and license agreement/ sale deed/ lease agreement may

be accepted as proof of address.

xi.

Certificate issued by hostel and also, proof of residence incorporating local

address, as well as permanent address issued by respective hostel warden of

aforesaid University/ Institute where the student resides, duly counter signed by


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the Registrar/Principal/ Dean of Student Welfare. Such accounts should be closed

on completion of education/ leaving the university/institute.

xii.

For students residing with relatives, address proof of relatives along with their

identity proof, can also be accepted provided declaration is given by the relative

that the student is related to him and is staying with him.

2.11 SBIS SAVINGS BANK ACCOUNT FEATURES:

The savings bank account in SBI provides PAI (Personal Accidental Insurance) of

about 4 lakhs by just paying Rupees 100.

SBI savings account facility also provides an insurance of 5 lakh especially to defense

personals having DSP (Defense Salary package) accounts.

SBI savings account facility provides access to other high tech products like internet

banking through sbionline.com, mobile banking through SBI freedom, and other

ATM-cum- Debit card facilities.

2.12 ONLINE SAVINGS BANK ACCOUNT FACILITY:

Some of the banks came up with the facility of opening the savings account online;

without actually physically visiting the branch and standing in those long queues at the


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branch. The easiest way to bank on the Internet is to open a savings account online. One

can get his first account open, and from there he can add additional accounts and services.

NEED FOR OPENING AN ACCOUNT ONLINE:

With the technological advancements these days, the working classes as well as the

common masses are finding it difficult to manage their time. They want a shortcut to

every task they perform. So a need was felt for such a facility, in which the customer of a

bank establishes a contact with the bank, without actually visiting the branch. This first

contact off course comes in the form of opening an online account.

2.13 SBIS ONLINE SAVINGS ACCOUT OPENING FACILITY:

With the introduction of various electronic banking channels, customers are increasingly

carrying out banking transactions without actually visiting the branch. The Bank has been

offering e-TDR/e-STDR/e-RD to its Savings Bank customers.

However, there has been strong demand for a facility to open Savings Bank Account

online from Retail clients which will help prospective customers establish the first

relationship with the Bank conveniently. On these lines, SBI has developed an online

application system for our Savings Bank Account.

Although there are few private banks who are already providing this facility, SBI started

this facility on 4th

December 2012, advising roll-out of the facility to apply for Savings

Bank Account opening online across all the Branches of India.

2.13.1 FEATURES OF THIS PRODUCT:

a. This facility is available only for Regular Savings Bank Account.

b.

There are two parts of the Account Opening Form (AOF):


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i. Customer Information Section and

ii.

Account Information Section.c. Part i. of the AOF will have to be filled in completely before proceeding to Part ii.

d. Apart from being an extremely convenient mode of application for the customer, the

OSBAA (Online savings bank account application) will reduce the TAT for Savings

Bank account opening considerably.

e. This feature will appeal to the tech savvy upwardly mobile segment and help the

Banks acquire new customers in this segment.

f. This new facility was rolled out across all branches w.e.f. from 04.12.2012.

2.13.2 THE PROCESS FLOW:

1.

A link stating Online Account Application will be provided on the homepage of

THE Corporate website viz. sbi.co.in/statebankofindia.com, for online application.

A similar link will also be available on the home page of Internet Banking Portal viz.

onlinesbi.com. This link, when clicked, will open the Account Opening web page in a

new window.

2.

All the fields in the physical version of Account Opening Form will be present in the

online version and the applicant will be systematically guided through the form filling

process in such a way that none of the mandatory fields can be left blank

3.

After filling in the personal information, the applicant will be asked to give details of

the KYC documents that he will be presenting as a part of the account opening

procedure. The applicant will be given time period of 30 days to apply to the branch

and present the originals and copies of these documents at the branch, failing which

the application will be discarded (by the system automatically).

4. Successful completion of the form filling process of the Customer Information

Section will generate a Temporary Customer Reference Number (TCRN) and the


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details of the application will be stored in the INB server at GITC. An SMS

conveying the TCRN will be generated and sent to the customers mobile numbergiven in the application form. The applicant has the option of printing the Account

Opening Form (AOF).The print out of the Account Opening Form has to be taken

only on A4 size white paper.

5. The applicant needs to visit the nearest branch for completion of the remaining

formalities. When the applicant visits the branch, there can be two possible scenarios :

Scenario I: The customer gives the printed AOF with the relevant KYC documents.

To open the account through Welcome Kit:

After verification of the documents at the branch, the applicant(s) will be asked to

sign on the print out of the application form and submit his /their passport size

photographs and KYC documents. The Branch Official will invoke Amend Personal

Customer in the CBS, put the CIF/Account Number printed in Welcome Kit and

select dropdown 1 and click Transmit button. This will open a new page, where the

TCRN will have to be entered in the Reference No. field to fetch all the data from

INB server to the CBS. The CIF will be set up after the branch teller checks this data,

amends it if necessary and transmits it in CBS. After amendments of the CIF in CBS,

account will be amended by branch in the usual manner as is being done currently in

case of Welcome Kits.

To open the account without Welcome Kit:

After verification of the documents at the branch, the applicant(s) will be asked to

sign on the print out of the application form and submit his /their passport size

photographs and KYC documents. The Branch Official will invoke Create Personal

Customerin the CBS and enter the TCRN in the Reference No. field to fetch all the

data from INB server to the CBS. The CIF will be set up after the branch teller checks

this data, amends it if necessary and transmits it in CBS.


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After creation of the CIF in CBS, account will be opened by branch in the usual

manner as is being done currently.

Scenario II: The customer has not taken a print of the AOF and has the TCRN,

Temporary Account Reference Number (TARN) and the relevant KYC

documents.

The Branch official will go to the menu Print/Save Account Opening Form in the

Online Account Application available in onlinesbi.com/sbi.co.in and enter the

TARN given by the applicant(s) and date of birth of the first applicant in the fieldprovided there.

The account opening form with the details entered by the applicant(s) will display on

the screen and the same can also be downloaded in PDF format. The Branch Official

will then take a print out of the entire form on A4 size white paper only. After

verification of the documents at the branch, the applicant(s) will be asked to sign on

the print out of the application form and submit his /their passport size photographs

and KYC documents.

The remaining process will be the same as in Scenario I.

6. After the account has been opened, the form will be forwarded to the LCPC, for

scanning the Signature and the Photograph of the applicant and completing other

necessary formalities.

2.13.3 SNAPSHOTS OF THE ENTIRE PROCESS

When a customer opens up the account online, he is guided through the entire process in a

very simple and lucid manner. This section provides a glimpse of the entire process in the

form of screen shots taken from the computer. The entire process works exactly in the

same manner as explained in the previous section under the title the process flow.


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2.14 ADDITIONAL BENEFITS: STATE BANK INTERNET BANKING

(ONLINE SBI)

The internet banking portal of State Bank of India also known as Online SBI provides secure

access of the customers to their accounts anywhere in the world. This is the channel which

virtually brings the branches of State Bank of India at the finger tip of the customers. The

internet banking customers (INB customers) can perform almost all the transactions for

which they were earlier required to visit the branches and stand in the queue, at their

convenient time with the use of their personal computer without paying extra charge to the

bank. The bank is also benefited by this facility.

A study has suggested that the transaction cost for one transfer transaction done using

INB is less than 50 paisa for the bank but the same transaction done at any of the branches of

the bank cost Rs. 45/- to the bank. Apart from the monetary benefits, the branches get

additional benefits which have far reaching impact on the operation, business and

profitability of the bank. It helps the branches by having fewer crowds in the branch to

manage and more time for marketing and business development.

Presently the following functions are available in the INB of State Bank of India. The list is

suggestive and not exhaustive.

Viewing account information

Generating account statement

Verifying cheque status

Transfer of funds to own SBI accounts across the country

Transfer of funds to third party (beneficiary) SBI accounts across the country,

Interbank transfer using RTGS, NEFT

Issuance of demand drafts

Payment of utility bills

mobile payments

Tax payment;

Reward points and Cash back offers on INB and Card payment etc


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Presently there are 6 crore internet users in India mostly in metro and urban area. The internet

penetration in India is 5.2% of its total population of 114.80 crore. SBI has a Savings Bank

(ordinary) customer base of 6.22 crore (as on 31.03.2008). However, the total INB users as

on March 2008 are 0.18 crore, a mere 2.89% penetration of its Savings Bank customers and

much lower of its total customers. It has added 81.97 lacs new Savings Bank (ordinary)

customer in the FY 2007-08. However, the new INB users added by the bank are 0.52 lacs

(0.63%) only. If we go by the penetration percentage of internet users in India, about 4.2 lacs

new users only in savings bank a/cs should have been added. SBI and its Associates have a

Savings Banks customer base of 3.44 crore in Metro and Urban areas (as on March 2007 as

per BSR published by RBI). In Urban cities there are 1.96 cr customers and in Metro cities1.45 cr customers. These customers have access to internet and are literate too. Still the

number of INB users in these areas is not encouraging.

2.15 SPECIFIC OBJECTIVES OF THE PROJECT:

Some of the main objectives of the study are:

To study the entire process flow of the Online Savings account opening facility.

To find out the awareness levels of the product.

To suggest ways to improve the publicity of the product.

2.16 SCOPE OF STUDY:

The study was made taking into consideration the whole of State Bank of India (Jammu

region), with special reference to Samba District.

2.17 PERIOD OF STUDY:

This research study was conducted for a period of 120 days i.e. 2 months (20 thMay 2013

to 20thJuly 2013).


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CHAPTER 3

METHODOLOGY


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3 METHODOLOGY

3.1 RESEARCH METHODOLOGY

RESEARCH

Research is the systematic investigation into existing or new knowledge. Research

refers to a search of knowledge. One can also define research as a scientific & systematic

search for pertinent information on a specific topic.

According to M. Stephenson The manipulation of things, concepts

or symbols for the purpose of generalizing, to extend, correct or verify knowledge,

whether that knowledge aids in construction of theory or in practice of an art. The

purpose of research is to discover answers to questions through the application of scientific

procedure.

RESEARCH METHODOLOGY:-

Research methods or techniques refer to the methods the researchers use in

performing research operations. It may be understood how research is done scientifically. The

task of data collection begins after a research problem has been defined & research design /

plan chalked out. While deciding about the method of data collection to be used for the study,

the researcher should keep in mind two types of data viz. primary & secondary.

Research Methodology includes:

Research Objective

Sampling

Sample size Sample area

Sample unit

Collection of data

RESEARCH OBJECTIVE

The objective of the survey is Study of launch of our new Tech product Online

Savings Bank account. The method of data collection is PRIMARY.


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SAMPLING-

Convenience sampling procedure is followed in this study. In the commonly used

method of this sampling, the researcher attempts to ensure that the sampling selected is a

representative of the population by selection sampling units on the basis of certain

parameters.

SAMPLE SIZE: 100

SAMPLING AREA: Jammu specifically District Samba

SAMPLE UNIT: Customers

RESEARCH INSTRUMENT

The research instruments used for collecting the primary data were the questionnaire.

QUESTIONNAIRE

The questionnaire was carefully developed tested and debugged before they were

administered on a large scale. Each questions contributed to the research objective. The

questionnaire is structured type means there are concrete, definite and predetermined

questions. The questions are presented are exactly same wording and in the same an order

to all respondents. The questionnaire had a mix type of open ended, closed ended and

multiple choice questions.

The questions were limited in numbers simple direct and unbiased technology was

adopted.

We framed a questionnaire set of 30 questions.

The questionnaire was designed in such a way so as to get a response which was

critical to the overall research.

The questions were deliberately split up in to sections so as to avoid any confusion or

sampling errors in the final statistical operations.


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3.2 DATA COLLECTION

Data Collection is an important aspect of any type of research study. Inaccurate data

collection can impact the results of a study and ultimately lead to invalid results. Data

collection methods for impact evaluation vary along a continuum. At the one end of

this continuum are quantitative methods and at the other end of the continuum are

Qualitative methods for data collection.

METHODS OF DATA COLLECTION

1. Primary Data:

Primary data is defined as the first time data collected. It is new in nature. This

type of data is collected directly from the source of information. The techniques,

which are involved in collecting the primary data, are personal interview, surveys,

questionnaire etc. In this project report we have collected data by personal

interview and questionnaire.

2. Secondary Data:

Secondary data is that type data which somebody else had collected and which

had already been passed through the statically process. This indirect information

of the data from sources containing past and present information is collected from

newspapers, journals, business manuals, pamphlets magazines etc. Since the

product to be studied was recently launched so there was no source of secondary

datato be taken into consideration.


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CHAPTER 4

DATA ANALYSIS


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4 ANALYSIS OF DATA

Following segment includes the analysis of the data collected in the form of a

questionnaire of 30 questions.

SECTION 1: PERSONAL INFORMATION

1. AGE

AGE GROUPS (in years) NO. OF RESPONDENTS

18-25 3226-40 43

40-60 22

Above 60 3

INFERENCE:

The above indicates that majority of the respondents (43%) who were surveyed

belonged to the age group between 26 to 40 years and only 3% of them belonged to

age above 60 yrs.

32%

43%

22%

3%

AGE OF RESPONDENTS

18-25yr

26-40yr

40-60yr

ABOVE 60yr


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2. GENDER:

GENDER NO. OF RESPONDENTS

MALE 66

FEMALE 34

INFERENCE:

The above indicates that majority of the respondents (66%) who were surveyed were

males while 34% were females.

3. EDUCATIONAL QUALIFICATION:

EDUCATIONAL QUALIFICATION NO.OF RESPONDENTS

UG 8

GRADUATE 57

PG 14

OTHER 21

66%

34%

GENDER

MALE

FEMALE


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INFERENCE:


Graduates while 8% had some other educational qualification.

4. MARITAL STATUS

MARITAL STATUS NO.OF RESPONDENTS

Single 32

Married 68

8%

57%

14%

21%

EDUCATIONAL QUALIFICATION

UG

GRADUATE

PG

OTHER


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INFERENCE:


married while 32% were unmarried.

5. OCCUPATION

OCCUPATION NO.OF RESPONDENTS

Business 21

Salaried 38

Household 13

Student 19

Other 9

32%

68%

MARITAL STATUS

Single

Married


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INFERENCE:

The above indicates that majority of the respondents (38%) who were surveyed

belonged to salaried class while only 9% followed some other occupation.

6. MONTHLY INCOME

MONTHLY INCOME (in Rupees) NO.OF RESPONDENTS

0-10,000 35

10,001-25,000 41

25,001-50,000 20

Above 50,000 4

Business

21%

Salaried

38%

Household

13%

Student

19%

Other

9%

OCCUPATION


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INFERENCE:

The above indicates that majority of the respondents (41%) who were surveyed had the

monthly income within the range of Rupees 10,001-25,000 while only 4% belonged to

the range of a monthly income of Rupees 50,000 and above.

SECTION 2: SAVINGS BANK ACCOUNT

7. DO YOU HAVE A SAVINGS BANK ACCOUNT?

SAVING ACCOUNT NO.OF RESPONDENTS

Yes 77

No 23

0

10

20

30

40

50

0-10,000 10,001-25,000 25,001-50,000 Above 50,000

No.

ofRespondents

Monthly income (in Rupees)

MONTHLY INCOME


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INFERENCE:

The above indicates that majority of the respondents (77%) who were surveyed had

their savings account while 23% did not have. Those of which who were not having

the savings account were encouraged to open one with SBI, highlighting the special

features provided by opening a savings account with State Bank of India.

8. IF YES, WITH WHICH BANK(S)?

WITH WHICH BANK(S) NO.OF RESPONDENTS (OUT OF 77)

SBI 67

J&K 72

PNB 40

ICICI 20

Other 35

Yes

77%

No

23%

DO YOU HAVE A SAVINGS ACCOUNT?


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INFERENCE:

The above indicates that majority of the respondents (72 out of 77) had account with

J&K bank, while 67 out of 77 had it with SBI, while only 20 had it with ICICI.

9. FACTORS YOU CONSIDER WHILE OPENING A SAVINGS ACCOUNT?

S.No. FACTORS

1 Easy accessibility

2 Interest rates

3 Internet banking

4 Mobile banking

5 Other

0

10

20

30

40

50

60

70

80

SBI J&K PNB ICICI Other

BANK(S) YOU HAVE ACCOUNT WITH


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INFERENCE:

The above indicates that majority of the respondents (49 out of 77) felt that easy

accessibility was the only factor they consider while opening an account.

10.ARE YOU AWARE OF THE ONLINE SAVINGS BANK ACCOUNT

FACILITY PROVIDED BY ANY OF THE BANK(S)

BANK(S) NO.OF RESPONDENTS (OUT OF 77)

SBI 3

ICICI 52

HDFC 57

Other 45

0

10

20

30

40

50

60

1 2 1,2 1,2,3,4 1,2,5

No

.ofRespondents

Factors

FACTORS YOU CONSIDER WHILE OPENING ASAVING ACCOUNT


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INFERENCE:

The above indicates that only 3 of the respondents knew about the SBIs savings bank

account opening facility while majority of the respondents knew about this facility

provided by private banks like ICICI, HDFC etc.

11.DO YOU USE INTERNET?

YES 12

NO 65

0

10

20

30

40

50

60

SBI ICICI HDFC Other

No.

ofrespondents

AWARENESS ABOUT THE ONLINE SAVINGS

BANK ACCOUNT OPENING FACILITY

16%

84%

DO YOU USE INTERNET?

YES

NO


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INFERENCE:

Since the area under study was Samba, being a district with rural population, majority

of the population (84%) did not use internet.

12.DO YOU THINK ITS USEFUL FOR BANKS TO HAVE ONLINE FACILITY?

Yes 12

No 10

I dont care 55

INFERENCE:

Majority of the respondents (71%) had an indifferent view when they were asked about

their opinion.

13.ARE YOU MAKING USE OF THE ONLINE FACILITY FOR YOUR SAVINGS

BANK ACCOUNT?

Yes 7

No 70

16%

13%

71%

IS IT IMPORTANT FOR BANKS TO

HAVE ONLINE FACILITY?

Yes

No

I dont care


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INFERENCE:

Majority of the respondents (91%) never used the Online Facility for their accounts.

And 9% who used it admitted that they are using the facilities of PNB and HDFC

majorly.

14.WHAT ARE THE REASONS YOU ARE NOT USING THE ONLINE SAVINGS

ACCOUNT FACILITY?

S.NO. REASONS

1. No internet access

2. I feel it is not secure

3. It is a waste of time

4. My bank doesntprovide it

5. Other

9%

91%

ARE YOU USING THE ONLINE FACILITY?

Yes

No


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INFERENCE:

Majority of the respondents (48 out of 77) felt that these facilities are not secure and

are a waste of time. The reason for them believing so was primarily because they feel

that such technology related activities may put their money at stake.

15.HAVE YOU EVER VISITED STATE BANK OF INDIA WEBSITE?

Yes 15

No 62

0

10

20

30

40

50

60

1 2 3 4 2,3 1,2,3

No.

ofrespondents

Reasons

REASONS YOU ARE NOT USING THE FACILITY

19%

81%

VISITED SBI'S WEBSITE?

Yes

No


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INFERENCE:

Majority of the respondents (81%) had never visited SBIs website.

SECTION 3: SBI ONLINE SAVINGS BANK FACILITY

Since only 3 out of 77 respondents were aware of this facility of opening of savings

account online and that too because of their interaction with the bank officials. There

were actually 2 respondents who were making use of the Internet banking facility for

SBI and they too were not frequent users of the facility. But they were completely

satisfied with the services of SBI and felt that Internet banking was really very safe.


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CHAPTER 5

CONCLUSIONS AND

RECOMMENDATIONS


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5. CONCLUSIONS AND RECOMMENDATIONS:

5.1 CONCLUSIONS:

From the analysis made above, following can be concluded:

1. Majority of the respondents have savings account with J&K bank (72 out of 77), with

SBI holding the second position (67 out of 77).

2. Easy accessibility is the major factor that people consider while opening their savings

account.3. There are not many internet users in the area under study.

4. Majority of the respondents (71%) were indifferent on the view of importance of

online facility for banks.

5. Majority of the respondents (91%) were not using the online facility for their savings

account in different banks.

6.

The primary reason for the respondents to not take up the online facility for their banks

was they felt that such facilities are not secure and find it a complete waste of time.

Also they felt that such technology puts their valuable money at stake.

7.

Majority of the respondents (81%) had never visited SBIs website

8. Only 3 out of 77 respondents knew about the online facility of opening a savings

account by SBI, and that too with their interaction with the bank officials.

9.

Also, there were only 2 respondents who were using the internet banking with their

SBI bank account and were completely satisfied with its services.

5.2RECOMMENDATIONS:

Since, the product under study was launched very recently i.e. on 4thDecember 2012,

majority of the respondents (customers and even the employees of the bank) were not

aware about its existence. So the major area of concern for this product is its popularity

and awareness at the very first place. So following can be recommended about this

product:


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To make people aware about the product with mass advertisement in print

media as well as on television, radio etc.

Create mass awareness campaigns for customers banking with SBI and other

banks.

Since it was found that the bank employees too had difficulties related to the

working of this product, so employee training programs should be introduced.

Introduce more banking coordinators and banking facilitators (BC/BF) who

could assist in its popularity.

To motivate customers to inculcate the habit of making least physical visits to

the branch and open up their accounts online.

Bank should look for ways to build a mechanism to follow up the enquiry

process for the customers who generate TCRN/TARN, but never report back to

branch within the said interval of time, for submission of KYC documents.

This was observed as a lacuna in the study of this product.

To highlight the benefits they could obtain by using the internet banking

facility for their savings bank account.

5.3 LIMITATIONS OF STUDY:

Every study has its own limitations in terms of methodology and the resources available for

its conduct. This study is no expectation to it and has been carried under following limitation.

Some of the limitations of this project are:-

The study was limited to a brief period of two months only.

Most of the time was spent in preparation of the questionnaire and pilot testing.

Also due to the busy schedule of the respondents, responses were delayed and

subsequently less time was spent in analyzing the results.

The questionnaire included objective answers, so it was difficult to reflect the

reasons for certain patterns.

Some of the respondents were not forthcoming with information as they thought

it to be a waste of time.


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Respondents lack of time to give information and their casual attitude was a big

hindrance in the study.

Some respondents had difficulty in responding due to lack of awareness.

Since the survey was primarily conducted in the rural area, the respondents were

not much educated, and it was difficult to interact with them.

Being a rural area, it was difficult to convince the respondents in terms of

technological benefits of the product.

Many of the surveyed people did not reply to all the questions.

The sample size was very small which may not represent the entire population.


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ANNEXURE: QUESTIONNAIRE

ONLINE SAVINGS BANK ACCOUNT OPENING FACILITY

Note: Your responses will remain strictly confidential. This survey questionnaire is being

conducted for education research purpose only.

SECTION 1: PERSONAL INFORMATION

1. Name (optional).........................................................

2. Age (in years)

18-25 26-40 40-60 Above 60

3. Gender

Male Female

4. Educational Qualification

Under Graduate Graduate Post Graduate

Other..................................

5. Marital status

Single Married

6. Occupation

Business person Salaried Household Student

Other..................................

7. What is your monthly income (in Rupees)?

0-10,000 10,001-25,000 25,001-50,000 Above 50,000

SECTION 2: SAVINGS BANK ACCOUNT

8. Do you have a savings bank account?

Yes No (end the questionnaire)

9. If yes, with which bank(s)?

SBI J&K PNB ICICI

Other (please specify)...........................................


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10.Which factors do you consider for opening a savings account?

Easy accessibility Interest rates

Internet banking Mobile banking


11.Are you aware of the online savings bank account opening facility provided by any of

these banks?

SBI ICICI HDFC


12.

Do you use internet?

Yes No (move to Q.15)

13.If yes, how many hours per day on an average you spend online?

Less than 1 hour 1-5 hr 5-10 hr More than 10 hr

14. How long have you been using internet services?

Less than 1yr 1-5 yr 5-10 yr More than 10 yrs

15.Do you think it is useful for banks to have online facility?

Yes No I dont care

16.

Are you making use of the online facility for your savings bank account

Yes No (move to Q18)

17.If yes, for which bank?

SBI PNB ICICI HDFC


18.What are the reasons you are not using the online savings account facility?

No internet access I feel it is not secure

It is a waste of time My bank doesnt provide itOther

If other, please specify

..........................................................................................................................................

19.Have you ever visited State Bank of India website?

Yes No


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SECTION 3: SBI ONLINE SAVINGS BANK FACILITY

Fill this section ONLYif you are using the SBI online savings bank account facility

20.

Do you think SBI caters to all your banking needs?Yes No

21.From past how many years you are banking with SBI?

Less than 1 yr 1-5 yr 5-10 yr More than 10 yrs

22.How did you get to know about the SBIs online savings bank account facility?

Bank officer Advertisement

Word of mouth other.......................

23. How often do you use this facility?

Daily Weekly Monthly Yearly

24.What are the things you usually do in your online account?

Transact money Check statements

Pay bills other


..........................................................................................................................................

25.

What are the problems you face while using the online facility?

Slow transactions loading time of pages

Security issues other


..........................................................................................................................................

26.What do you like most about the online facility?

Saves time Safe

No physical visit to branch other

If other, please specify..........................................................................................................................................

27.

How satisfied are you with the online savings bank account facility

Completely satisfied

Satisfied

Neither satisfied nor dissatisfied

Dissatisfied

Completely dissatisfied


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28. Compared to other online savings bank facility that are available with other banks,

would you say that SBI online savings bank account facility is

Much better

Somewhat betterAbout the same

Somewhat worse

Much worse

29.What are the improvements you would like to see in your online facility?

It should be more secured fast processing

User friendly other


..........................................................................................................................................30.Would you like to recommend this facility to your friends and colleagues?

Yes No

Suggestions, if any

..........................................................................................................................................

..........................................................................................................................................

.............................................................................................................................

Your Contact details (OPTIONAL):

Email id......................................

Phone number...........................

Address.............................................................................................................................

..........................................................................................................................................


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BIBLIOGRAPHY:

1.

www.sbi.co.in2. www.onlinesbi.co.in

3. SBI Times

4. www.siliconindia.com (for interest ratings of different banks in section

2.1.1)

5. http://topicalfinanceblog.com/history-of-savings-account/

6. money.howstuffworks.com

7. www.wikipedia.com

8. SBI Annual Report 2011-2012

Documents

SBI Soubika