Ict and Banking Industry

A PROJECT REPORT ON THE movement OF INFORMATION AND COMMUNICATION TECHNOLOGY ON THE EFFECIENCY OF deponeING INDUSTRY (IN UDAIPUR CITY) IN THE take apartial derivative FULLFILLMENT OF THE REQUIREMENT FOR MASTER OF BUSINESS ADMINISTRATION (MBA) 2007-2009 PACIFIC INSTITUTE OF MANAGEMENT, UDAIPUR positioning Box No. 12, Pratap Nagar Extension, Airport road Udaipur-313003 Ph 0294-2491340 E escape emailprotected om,emailprotected com Submitted by Submitted to Chanda Joshi Mr. Dhiraj Jain MBA Part-2 Asstt. Professor, PIM ACKNOWLEDGEMENT Industrialists in professional life be managely and keenly awargon of their palpate of indebtness to m whatever people who comport stimulated & influenced their intellectual victimisation in ordinarily.The feeling is formally express in customary gestures of cite therefore it seems only advanced to ack promptlyl a simplyment my gratitude with sense of veneration to the al exponenty & various people seconded me to change state in frameatic & smoother manner. I would like to express my profound thank to all the respondents who were co-operative enough and spargond their semiprecious while in filling up the questionnaire. Words argon not in lexicon to express my sincere sense of gratitude for my mentor, elite guide and path Mr. Dhiraj Jain and, Prof. B.P SHARMA (Director, pacific institute of Management) whose valuable guidance instigating encouragement creative thoughts & constructive criticism had helped me to accomplish this interrogation work successfully. CHANDA JOSHI PREFACE The explosive proceeds of nurture and conference engine room (ICT) is swiftly ever-changing the bounding patience and stern competition between the extend numbers of jargons has resulted in high investment on ICT. This report discusses the frame of ICT on imprecateing industry ( profit) in Udaipur city with reference to public and secluded trusts. 2 Questionnaires were employ to collect selective schooling from diverse clie nts and patois employees separately the guests and bank employees accept as true that ICT has an effect on banking industry in India. The results of shoot undoubtedly show the massive imp perform of ICT on the operation of the banking industry in India. INDEX PARTICULARS DESCRIPTION 1. ACKNOWLEDGEMENT 2. PREFACE 3. decision narkr SUMMARY 4. opening 5. INDUSTRY PROFILE 6. look into METHODOLOGY 7. data INTERPRETATION 8. FINDINGS,CONCLUSIONS . RECOMMENDATIONS 10. QUESTIONNAIRE 11. BIBLIOGRAPHY EXECUTIVE SUMMARY Advances in the banking sphere have ushered in an era of multi product and multi proceeds being delivered exploitation multiple to that extent integrated channels. The function of written report and communication applied science (ICT) is on the increase and encompasses nearly the entire gamut of banking operations. Rising competition and customer expectations have compelled exculpate management work through, and continuously upgrade, agile scalable ICT practi ces and solutions.The enormity and array of banking service combined with the complexity of integrated and ICT changed deli really mechanisms require comprehensive partnerships to be forged between banks and providers of ICT solutions. ICT has a crucial billet to play in the fiscal sector in at least three primary(prenominal) aras improving the range and faculty of banking service available to customers, lighting constitute change magnitude the efficiency of capital grocerys, and bring home the baconing for more(prenominal)(prenominal) effective regulations of all fibers of fiscal markets and related proceedings.The drug abuse of ICT enables a better deli real of banking service to both down paymentors and borrowers within a country and between countries. ICT has a pennyimeral role in the operation of various capital markets much(prenominal)(prenominal) as stock(a) markets, bond markets and foreign exchange markets, and it is intensively apply by market organiz ers, market professionals and investors in this markets. ICT is to a fault an necessity tool for supervisory or regulatory bodies of these markets at both national and international levels.This search presents the exploratory findings of a research study to identify the effect of performance of ICT on the efficiency of banks in Udaipur. The method actingology includes the collection of data by the questionnaire survey. Two characters of questionnaires be to be prep bed for the data collection- One questionnaire has been distributed among the customers to know the efficiency of the banking function by utilise ICT. The second questionnaire is to be filled by the officials of the banks, which lead provide culture roughly the indispensableness, & splendor of the ICT for the efficiency of the bank.Chapter 1 INDUSTRY PROFILE INDUSTRY PROFILE What is banking? bevel may be defined as a financial institution which is engaged in the business of keeping money for economic system s and revealing considers or for exchange or for issuing adds and credit etc. A set of run intend for underground customers and characterized by a higher quality than the services offered to retail customers. Based on the notion of tailor-made services, it aims to offer advice on investment, heritage plans and provide active support for general transactions and the resolution of asset-related occupations.The essential function of a bank is to provide services related to the storing of puzzles and the extending of credit. raw material function may include Credit collection, Issuer of banking notes, Depositor of money and lending gives. at present a days banking isnot in itstraditional counsel, with the advancement of technology its focusingon morecomfort of customerproviding services such as Online Banking Investment Banking electronic Banking Internet Banking PC Banking /Mobile Banking E-Banking The importance of banking sector is immense in the progress and prosperi ty of whatever body politic or country.INDIAN rimING INDUSTRY The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the overture eld. Based on the projections made in the India Vision 2020 prepargond by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of en thumpingment in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 atomic number 18 estimated at Rs 40, 90,000 crores. That leave alone comprise ab forbidden 65 per cent of GDP at current market prices as comp atomic number 18d to 67 per cent in 2002-03.Bank assets argon expected to grow at an annual complicated rate of 13. 4 per cent during the rest of the decade as against the growth rate of 16. 7 per cent that existed between 1994-95 and 2002-03. It is expected that there volition be large additions to the capital base and reserves on the financial obligation expression. Banks in India ordure be categorized into non-scheduled banks and scheduled banks. Scheduled banks pay off of commercial banks and co-operative banks. There are ab out(p) 67,000 branches of Scheduled banks spread crosswise India. During the start-off phase of financial reforms, there was a nationalization of 14 major banks in 1969.This crucial step led to a transport from Class banking to Mass banking. Since then the growth of the banking industry in India has been a continuous process. The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. unluckily they are burdened with excessive Non Performing assets (NPAs), massive manpower and leave out of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, liquid banking, phone banking, ATMs.As far as foreign banks are concer ned they are likely to succeed in the Indian Banking Industry. Indus land Bank was the first private bank to be set up in India. In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd,Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some private sector banks. Banks from the Public Sector include Punjab bailiwick bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank , Andhra Bank etc.ANZ Grindlays Bank, ABN-AMRO Bank, Ameri hatful Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry . CHAPTER-2 INTRODUCTION - Meaning of ICT The term ICT describes the use of computer based technology and the profits to refer reading and communication service available to a commodious rang of users. The term is used broadly to address a range of technologies, including telephones. telephone exchange to these is the Internet, which provides the mechanism for transporting data in a number of formats including textual matter, images, sound, and video.Additionally, ICT deals with the mrequest layer, the systems that enable study to be collected and distributed, analyzed, and processed. However, go ICT is generally adaptable to contrary information. Needs and circumstances, its effectiveness in solving development issues silence depends on the content it carries. - The New Era The 21st century depart cultivate about an all embracing convergence of computing, communication, information and knowledge. This will radically change the way we live work and think.The growth of high urge on networks, coupled with the falling personify of computing power, is making possible finishing under dream of in the historical. Voice, data, images, and video may now be transferred around the world in microseconds. This explosion of technology is changing the banking industry from paper and branch banks to digitized and networked banking services. It has already changed the internal accounting and management systems of banks. It is now fundamentally changing the spoken language systems banks use to interact with their customers.All over the world, banks are still struggling to find a technological solution to take on the challenges of a rapidly changing environment. It is clear that this parvenu technology is changing the banking industry forever. Banks with the aptitude to invest and integrate information technology will become dominate in the highly competitive global market. Bankers are convinced that investing in IT is critical. Its potential and consequences on the banking industry future(a) is enormous. - engine room and Banks Transformation -Computers are make outting more sophisticated. They have wedded banks a potential they could only dream about and have granted bank customers high expectations. The changes that stark naked technologies have brought to banking are enormous i n their impact on officers, employees, and customers of banks. Advances in technology are allowing for deliverance of banking products and services more conveniently and effectively then ever before- thus creating modernistic based of competition. Rapid access to critical information and the ability to act quickly and effectively will distinguish the successful banks of the future.The bank gains a vital competitive reinforcement by having a direct market and accountable customer service environment and revolutionary, streamlined business processes. legitimate management decision support system provides the bank that competitive edge to forge ahead in the banking market place. - - Major application The advantage accruing from computerization are three-directional to the customer, to the bank, and to the employee. - For the customer - - Banks are aware of customers need for brand-new services and plan to make them available. It has increase the level of competition and force d them to integrate the new technologies in order to satisfy there customers. They have already developed and implemented a accepted number of solutions among them - * -Self inquiry Facility - Facility for logging into specified self inquiry terminals at the branch to inquire and view the transaction in the account * - Remote banking - Remote terminals at the customer site committed to the respective branch through a modem, enabling the customer to make inquires regarding his accounts, on-line, without having to move from is office. * -Anytime banking- Anywhere banking - Installation of ATMs which offer non-stop cash withdrawal, remittances inquiry facilities. Net running(a) of computerized branches inter-city and intra-city, will permit customers of these branches, when interconnected, to transact from any of these branches. * - Telebanking - 24- Hour service through which enquiries regarding balances and transactions in the account bath be made over the phone. - Electronic banking - This enables the bank to provide corporate or high value customers with lifelike user inter reflection (GUI) software on a PC, to inquire about their. pecuniary transaction and accounts, cash transfers, chequebook issue and inquiry on rates without visiting the bank Moreover, the customer put up send LC text and details on bills, and the bank can download the same. The technology used to provide this service is called electronic data interchange (EDI).It used to enthrall business transaction in computer readable from between governing and individuals in a standard format. * - As information is centralized and updates are available simultaneously at all places, integrity window service become possible, leaving to effective reduction in waiting time. For the bank- During the last decade, banks applied IT to a unsubtle range of back and apparent movement office tasks in addition to a great number of new products. The major advantages for the bank to implement IT are Availability of a tolerant range of inquiry facilities, assisting the bank in business development and acquire up. * Immediate replies to customers queries without reference to ledger-keeper as terminals are provide to mangers and chief mangers * multiplication of various MIS reports & periodical returns on receivable dates.. * Automatic and prompt carrying out of standing instructions on due date and generation of reports. * ready and up-to-date information transfer enabling speedier decisions by interconnecting computerized branches and controlling offices.For the employees IT has increased this productivity through the followings * Accurate computing of cumbersome and time consume jobs such as balancing and involution calculation on due dates. * Automatic printing of covering schedules, deposit receipts, passbook / pass sheet, button the staff from performing these time consuming jobs, and enabling them to give more attention to the needs of customers. * Signature re trieval facility, assisting in verification of transactions, seats at their on terminal. * Avoidance of duplication of entries due to existence of single point data entry.A search of the banking literature reveals that banks are moving rapidly to take advantage of recent and new customer service and cost reduction opportunities that new technologies offer. IMPORTANCE OF INFORMATION & COMMUNICATION TECHNOLOGY The mesh is rapidly becoming the information superhighway of a global electronic marketplace. The rising commercial interests in the internet are especially discernable in front-end application such as electronic catalogs, yellow pages, storefronts, malls, and customer support centers.All this application are based on the world all-encompassingly Web (WWW) the fastest growing segment of the Internet. Although back-end applications such as electronic data interchange (EDI) are equally important, their adoption has not been as rapid. One major concern is security measures t he Internet is generally sensed as not secure enough for transmitting sensitive data such as payments. Upon a closer look, however, this view is not warranted, since technologies such as public key encryption and firewalls address essential security concerns.Moreover, such technologies are already available. The only remaining barrier is the need of real world users of those technologies. Investing in technology According to a survey conducted by the American Bankers Association, US banks expenditure on information technology grew from $ 16. 3 billion in 1994 to $ 18. 7 billion in 1995 an increase of 14. 7%, and $ 1 billion more than the same bankers forecasted they would return in last years survey. By 1998, the banks expect to run $ 21. 2 billion (an increase of 7. 1%) The New words Systems.The change magnitude cost of building brick-and-mortar branches, decreasing cost of computers, high delivery be and slow receipts growth force a relook at the ceremonious delivery syst ems. Moreover, growing comfort of technology usage by the customer is rapidly fostering usage of non branch channels for routine transactions. The new strategy changes the focus of the branch from being a high cost transaction center to a provider of a wide range of services like telebanking, customer service kiosks, ATMs, and remote electronic banking.New Marketing Opportunities As the new technology is so expensive banks need to use the new systems to do more than deliver information and canonical services. Banks need the ability to excessively sell insurance and investment products to get a better return on this investment. Telephone banking can obtain financial services to the home or office, especially if they are affordable screen phones. By noticing how much interest the customer expresses, the bank can market stock quotes and insurance quotes.Interactive videos are new technology that banks can make available to the customers to maintain personal contact while still low ering the expenses of delivery service. With an interactive video an expert employee is not undeniable in each branch. Complex life insurance products, open brokerage accounts, customized product illustrations can be widely available where need. The interactive videos will be cost effective expertise. The internet is a medium to allow banks to offer products to customers outside the normal customer base of a branch.Banks are aware of the customers need for these services and plan to make them available before other sources do. THE EFFECT OF ICT ON BANKS Banks is an unusual unanimous because it does not produce any object or tangible product, like a farmer producing rice or Cement Companies producing bags of cement. On any business day, a bank receives information, stores information, processed information, and distributes information. A saving deposit is recorded, an entry is made in someones account, at the right time interest is added, and the customer is periodically provided with a ummary statement. A bestow application is received, a file is started, the application is assessed by a loan officer, and the client is either rejected or provided with a credit. Each of these functions can be handled by hand with ledger and pens or, today, they can be handled but by data entry, computers, and information systems. What ICT does for a bank is to make a dramatic reduction in the costs of handling information and in the transaction costs to the bank and customer of handling a deposit or loan.Clearly, this reduction benefits both the bank and its customers. The impact of high transaction costs is even more acute in rural areas and mischievously Inhibits access even to basic financial services. Out on-going field work shows that a formal lending rate for a farm loan of, say, 15 percent is not sufficient to switch business away from informal lenders who charge a rate of 40 percent or higher. ICT not only increase the efficiency of bank operations but permits b anks to offer a wider array of services such as ATMs, telephonic banking, and computer banking.ICT facilities the deeper penetration of credit card services, thereby expediting business transaction. understructure the scenes an ICT system would permit banks to speed up inter bank check clearing and engage in electronic funds transfer such as direct debiting or salary deposits. A credit authorization would enable banks to obtain accurate and immediate information about a customers credit history and rating, thus lowering ventures, costs, and interest rates. What is perhaps less well known, is that ICT dose not merely lower information and transactions costs and improve bank efficiency and services.With the development or proper accounting and reporting standards, an ICT system also improves the ability of bank and capital market regulators to track the information they need to gravel financial markets . ICT can help takes and customs authorities to expedite revenue collections a nd if properly handled it can greatly reduce the potential for unwarranted side payments. Role of information technology in banking industry I. T. in Banking 1). Technology has opened up new markets, new products, new services and effectual delivery channels for the banking industry.Online electronics banking, mobile banking and internet banking are just a few examples. 2). Information Technology has also provided banking industry with the wherewithal to deal with the challenges the new economy poses. Information technology has been the cornerstone of recent financial sector reforms aimed at increasing the speed and reliability of financial operations and of initiatives to uphold the banking sector. 3). The IT revolution has set the stage for unprecedented increase in financial activity across the globe.The progress of technology and the development of world wide networks have significantly reduced the cost of global funds transfer. 4). It is information technology which enables b anks in meeting such high expectations of the customers who are more demanding and are also more techno-savvy compared to their counterparts of the yester years. They demand instant, anytime and anywhere banking facilities. 5). IT has been providing solutions to banks to take bang of their accounting and back office requirements. This has, however, now given way to large scale usage in services aimed at the customer of the banks.IT also facilitates the introduction of new delivery channelsin the form of modify Teller Machines, Net Banking, Mobile Banking and the like. Further, IT deployment has assumed such high levels that it is no longer possible for banks to manage their IT implementations on a stand alone basis with IT revolution, banks are increasingly interconnecting their computer systems not only across branches in a city but also to other geo chartical locations with high-speed network infrastructure, and setting up local area and wide area networks and connecting them t o the Internet.As a result, information systems and networks are now exposed to a growing number. Technology Products (1). Net Banking (2). Credit Card Online (3). One tantrum (4). InstaAlerts (5). Mobile Banking (6). NetSafe (7). e-Monies Electronic Fund take (8). Online Payment of Excise & function Tax (9). Phone Banking (10). Bill Payment (11). Shopping (12). Ticket conflict (13). Railway Ticket Booking through SMS (14). Prepaid Mobile charge (15). Smart Money Order (16). Card to Card Funds Transfer (17). Funds Transfer (ECheques) (18). Anywhere Banking (19). Internet Banking (20). Mobile Banking (21). emailprotected (i) Express Delivery 22). Cash on Tap (ii) Normal Delivery Chapter 3 RESEARCH METHODOLOGY RESEARCH METHODOLOGY look in common idiom refers to the search for knowledge. It can also be define as scientific and systematic search for pertinent information on specific topic. In fact, research is an art of scientific investigation research is a sweep of discovery . it is also utter to be the pursuit of truth with the help of study , observation , comparison and experiment. The rule of research in several(prenominal) fields of applied economics weather related to business or to economy as a whole, has greatly influenced in modern times.The increasing complex nature of business and government has focused on the use of research in solving problem. According to Kiplinger research is a systematic, controlled, data-based and critical investigation of hypothetical propositions about the presumed relation among natural phenomenon. distinction of query ? Research is a systematic and critical investigation into a Phenomenon ? Research is not a mere compilation, but a nonrandom investigation. ? It aims at describing, interpreting and explaining a phenomenon. ? It adopts scientific method. ? It is objective and logical. It is based upon the discernible experience and empirical evidence. ? It is directed towards finding answers to pertinent question and Solution. exemplify in Research Process ? formulating the research problem ? Choice of research design ? find out sources of data ? Designing data collection forms ? Determining sampling design and sampling size ? Organizing and conducting the field survey ? bear upon and analyzing the collected data ? Preparing the research report RESEARCH OBJECTIVES Objectives of the proposed study are as under- 1) To study the effectiveness of ICT in banks of Udaipur city. (2) To study the effect of the ICT on service delivery of banks. RESEARCH DESIGN - A Research Design specifies the methods and procedures for conducting a particular study. The researcher should attribute the approach he intends to use with respect to the proposed study. Broadly speaking Research Designs can be groped in to 3 categories 1. Exploratory research 2. Descriptive research 3. workaday Research For achieving the research objectives which are already stated clearly, The Descriptive Research method was adopt ed. SAMPLE SIZE -It describes how many an(prenominal) employees and customers of the bank should be surveyed 25 employees and 25 customers of private as well public banks were surveyed. SAMPLING proficiency- Respondents were selected on the basis of convenience sampling in the received private As well as public banks of Udaipur city SAMPLE social unit - For the study two types of samples are to be selected (a) Customers of the banks (b) Bank Employees TOOLS OF DATA arrangement - The following tools were used for the data collection 1. Structured questionnaire By asking the structured questions to the employees and customers by interviewing. . Review of written document some part of this study was collected from the journals and books. CHAPTER-4 DATA INTERPRETATION Various banks in which these employees are working Various banks in which customers are having their accounts A. FOR THE CUSTOMERS Q. 1 TYPES OF ACCOUNTS? indication The supra chart shows about the types of accounts of the customers in the bank. In it 76% have saving account ,12%of customers are having current & 12% 0f customers are having both type of account in the banks. Q. 2 Awareness of the changes due to ICT? meter readingThe above graph shows the 98% of the customers are aware of the changes due to ICT, but very less ( 2% ) of customers were unaware of it. Q. 4 For last how many years is your bank using ICT? description The76% customers respondents their bank using ICT for last 5 & above years and 24% of customer express that their bank is using ICT for the 0-5 years. Q. 5 is both department computerized? Interpretation 92% customers respond that every department is computerized in their bank but very few customers i. e. 8% verbalize that every department is not computerized Q. Do you find any problem while using ICT? Interpretation The above graph shows that 60% of customers find no difficulty while using ICT, 32% said it is very difficult to understand and 8%% find it difficult to give way. Q . 7 Do you find bank staff co-operating ? Interpretation 97% of customers said that there bank staff is co-operating but 3% respond negatively. Q. 8 Do you think ICT has improved the service delivery of the bank? Interpretation preceding(prenominal) graph shows that the 82% of customers were strongly concur and 18% were agreed that ICT has improved the service delivery of the bank. Q. Are you satisfied with the banking services providing you after(prenominal) using ICT? Interpretation Above graph shows that the 82% of customers were strongly satisfied, 16% were agreed satisfied but only 2% were dissatisfied with the services providing to them after using ICT. Q. 10 Is any return requisite in this type of services? Interpretation Above graph shows that the 84% of customers needed improvement in ICT, 16% said that no improvement is required. B. FOR BANK EMPLOYEES Q. 1 Awareness of the changes due to I. C. T. ? Interpretation The above graph shows that awareness l evel of the respondents due to the hanges of I. C. T. 100% are aware with the changes due to the I. C. T. in the banks. Q. 2 Is your bank using I. C. T.? Interpretation The all respondents said that their bank is using information and communication technology. Q. 3 For how long I. C. T. is used in this bank? Interpretation The Above graph shows about the year of ICT using being used in banks . In it78% of the banks are using ICT from past 0-5 years. After that 22% of the banks are using I. C. T. from past 6-10 year. And no bank has experience to use the I. C. T . more than 11 years. Q. 4 Do you think that implementation of I. C.T. in banks is essential and effective in banks? Interpretation The above graph shows that the implementation of I. C. T. in banks is very much essential and effective . 66% of employees are strongly agree with it & 34% of employees were agree. Q. 5 Has I. C. T. brought positive changes in your way of working? Interpretation The above graph shows that the inf ormation and communication technology has brought very positive changes in the working way of doing job 68% respondents were strongly agree with it but the very least i. e. 2%of respondents were strongly resist with the statement.Q. 6 Has I. C. T. brought the positive changes in this bank? Interpretation 68% of employees accepted that I. C. T. has brought positive changes in their bank ,28% were agree with it but 4% of respondents were dissent with fact. Q. 7 Do you face any problem while using I. C. T.? Interpretation 82% of the employees do not find any difficulty in using the new system. 10% of the employees find the new system difficult to understand . 8% of the employees find difficulty in operating the new system. Q. 8 Has training been provided to the employees to use the new system tech. ?Interpretation The above graph shows that 42% 0f employees were strongly agree that they got the training to use the new system technology, 36% were agree but 20% were differ & 2% were s trongly protest about the acquiring of training for using the technology. Q. 9 Has I. C. T. improved the mathematical operation of the bank employees ? Interpretation 66% of respondents were strongly agree that the I. C. T. has improved the performance in their bank, 30% were agree but the rest were disagree with this. Q. 10 Has I. C. T. lead to loss of jobs in banking sector? InterpretationThe above graph shows that 64%0f employees were strongly agree that I. C. T has lead to loss of jobs in banking sector,16% of employees were disagree with the statement. Q. 11 Has I. C. T. touched efficiency in banking services? Interpretation The above graph shows that 68% 0f employees were strongly agree that I. C. T. has affected the banking services,30% were also agree & 2% were disagree with it. CHAPTER- 5 FINDINGS, CONCLUSIONS & RECOMMENDATIONS Findings 1. 66% of the customers respond that they are getting better services after using Information & communication technology. 2.It was foun d that 98% of customers & 100% of employees a were of the Changes due to new system technology. 3. It was found that 82% of customers strongly agreed that ICT has improved the Service delivery of the bank. 4. 98% of employees of employees accepted that the information & Communication technology has affected the banking service in positive Manner. 5. This was found that because of ICT has lead to the loss of jobs in banking sector. 6. During the study it was found that because of lower network connectivity Employees as well as customers were getting problem in service. . 100% of Employees as well as customers said that the implementation of I. C. T. is essential & effective in banks. Conclusion * Banks offering internet-based products and services should have authentic and secure methods to authenticate their customers. * The level of certification used by the financial institution should be appropriate to the risk associated with those products and services. * Financial institutio n should conduct a risk assessment to identify the types and levels of risk associated with their internet banking application.Where risk assessments indicate that the use of single-factor authentication is inadequate, financial institutions should implement multifactor authentication, layered security, or other controls jolly calculated to mitigate those risks, the agencies hear single-factor authentication, as the only control mechanism, to be inadequate in the carapace of high risk transaction involving access to customer information or the movement of funds to other parties. * Most of the customers are satisfied with the services provided by banks. The objective of the study was to find out the effect of information & communication Technology on the efficiency of banking sector in certain private as well as public banks, It was to find out how service delivery is effected after using the ICT in banks. * The study concludes that information & communication technology plays more significant role in the increasing of the banking efficiency in both, private as well as public sector banks. RECOMMENDATIONS- ? Raise awareness and promote the concept of information &Communication technology among the customers as well as bank Employees. The method of authentication used in a specific internet application Should be appropriate and reasonable, from a business perspective, In light of the reasonably foreseeable risks in that application. ? Conduct training programme once in the month. ? Encourage the use of E-Commerce by providing the better & fast Services. ? An effective authentication method should have customer acceptance, Reliable performance, scalability to accommodate growth, and Interoperability with existing systems and future plan . With the growth in electronic banking and commerce, financial Institutions should use reliable methods of originating new customer accounts online. ? Financial institutions should rely on multiple layers of controls to balk f raud and safeguard customers information. ? Recognize the needs of employees while using the ICT. ? should provide the fast & regular ICT services so that employees can deliver the fast services & customers can gat the better services. ? The daily updating & awareness of new changes in ICT must be in Practice.LIMITATIONS ?The research conducted was limited to Udaipur City only. ?Findings of the study are based on the assumption that respondents have Divulged the correct information. ?The study is confined to selected groups of employees & customers in banks of Udaipur city. ? hardly a(prenominal) respondents were so much occupied with their work that they could not Spare time to fill the questionnaire. ?Due to unwillingness of providing any information, the respondents Filled the questionnaire casually which might have affected the conclusion.BIBLIOGRAPHY www. google. com www. rediff. com Kothari. C. R Research methodology methods & techniques Questionnaire 1 FOR BANK EMPLOYEES C ontact Person________________________________________________ Age______ Gender_____ Designation_______ Phone No. _____________ Official Address_______________________________________________ _____________________________________________________________ Q. 1Are you a were of the changes due to information and communication Technology in banking system? Yes No Q. 2 Is your Bank using I. C. T.? Yes No Q. 3If yes, for how long I. C. T. is used in this bank? 0 5 6 10 11 and above Q. 4Do you think that implementation of ITC is essential and effective for Banking sector? A) look into B) disaccord C) strongly hold D) Strongly disagree E) neutral Q. 5Has ICT Brought Positive changes in your working way of doing job?A) take B) differ C) Strongly Agree D) Strongly disagree E) neutral Q. 6Do you think that ICT has brought Positive changes in this bank? A) Agree B) Disagree C) Strongly Agree D) Strongly disagree E) neutral Q. 7What problem do you f ace while using this new system technology? A) troublesome to operate B) Difficult to downstairsstand C) Easy Q. 8Did you get training to use the new system technology?A) Agree B) Disagree C) Strongly Agree D) Strongly disagree E) neutral Q. 9Do you think ICT has improved the performance of employees in this bank? A) Agree B) Disagree C) Strongly Agree D) Strongly disagree E) neutral Q10Do you think ICT has lead to loss of jobs in banking sector? A) Agree B) Disagree C) Strongly Agree D) Strongly disagree E) neutral Q. 11Has ICT affected the productivity / efficiency in Banking services? A) Agree B) Disagree C) Strongly Agree D) Strongly disagree E) neutral Q. 12Is any improvement required? Yes No Questionnaire 2 FOR CUSTOMERS Contact person_________________ Age ____________ Gender__________________ Educational Qualification Under Graduate Graduate Post Graduate Other specify Q1. What type of Account do you operate?A) Saving B) C urrent C) other specify Q. 2For how long have you been using this bank? A) 0 5 B) 5 10 C) 10 15 15 and above Q. 3Are you aware of the changes due to information and communication Technology in banking system? A) Yes B) No Q. 4For last how many years your bank is using I. C. T.? A) 0 5 B) 5 and Above Q. 5Is every Department is computerized? A) Yes B) NO Q. Do you find any problem while using this new system technology? A) Difficult to operate B) Difficult to understand C) Easy Q. 7Do you find Bank staff co-operating? A) Yes B) NO SQ. 8Did you get any help services to use new system technology? A) Agree B) Disagree C) Strongly Agree D) Strongly disagree D) Neutral Q. 9 Do you think ICT has improved the service delivery of the bank ?A) Agree B) Disagree C) Strongly Agree D) Strongly disagree D) Neutral Q. 10Are you satisfied with the Banking services providing you after using I. C. T.? A) Agree B) Disagree C) Strongly Agree D ) Strongly disagree D) Neutral Q. 11Do you have account in both public sectors Bank as well as in private sector Bank? A) Yes B) No Q. 12if any improvement required? A) Yes B) No