A STUDY ON THE IMPACT OF ELECTRONIC BANKING SERVICES WITH SPECIAL REFERENCE TO THE INDIAN BANKING SECTOR

Abstract

E-Banking has evolved into a cornerstone of modern banking and finance, especially in the Indian context where the digital revolution is being propelled by both government initiatives and private sector innovation. With the rapid proliferation of digital infrastructure, widespread internet access, mobile phone usage, and fintech adoption, the banking sector is undergoing a transformative shift. India has become one of the leading adopters of digital payments globally, thanks to platforms like UPI (Unified Payments Interface), which recorded over 13.5 billion transactions in March 2024 alone, as per the National Payments Corporation of India (NPCI). Digital banking no longer serves as an optional convenience but has transitioned into a fundamental service expectation among banking customers. E-banking services today encompass not only traditional offerings like ATMs, Internet and Mobile banking, but also UPI, digital wallets, contactless payments, and AI-driven customer service tools. The shift towards a cashless economy, supported by government programs such as Digital India and RBI's Central Bank Digital Currency (CBDC) pilot, reflects this paradigm shift. This research utilizes descriptive methodology and primary data collected via structured online questionnaires from a diverse sample of 54 respondents primarily from Delhi NCR, covering a wide demographic spectrum. This report presents a detailed statistical analysis of survey data on digital banking adoption in India, aligned with the following research objectives: 1. Identify key drivers of digital banking adoption and growth. 2. Analyze factors influencing e-banking upliftment (e.g., service quality, demographics). 3. Evaluate current e-banking services (ATM, mobile banking, fund transfers). 4. Assess the impact of emerging payment systems (e.g., UPI Lite) on engagement. vi Methodology: • Regression Analysis: Predictors of overall satisfaction and adoption. • ANOVA: Differences in satisfaction across income/age groups. • Chi-Square Tests: Relationships between demographics and usage patterns. • Z-Tests: Adoption rates between user segments. Findings from the study contribute to understanding the broader implications of E- banking on India’s financial ecosystem and indicate high satisfaction and usability levels among digitally engaged banking customers.