View of ONLINE BANKING: IN CONTEXT JAMMU AND KASHMIR BANK

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Vol.04,Special Issue 05, (ICIR-2019) September 2019, Available Online: www.ajeee.co.in/index.php/AJEEE

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ONLINE BANKING: IN CONTEXT JAMMU AND KASHMIR BANK Sajad Ahamd Bhat

Ph. D. Research Scholar

Abstract - The massive propagation of Information and Communication Technology (ICT) has brought significant development in all sectors of life including socio-economic development of the world. The financial institutions havecontributed more towards serving economic level of the state. The role of banking sector has emerged vital in the state of Jammu and Kashmir. Jammu and Kashmir bas has availed the applicability of information and communication technology up to maximum extent. On the other hand the customers of Jammu and Kashmir Bank have availed these online opportunity of the Jammu and Kashmir bank and hassle-free relation has initiated between Jammu and Kashmir and its customers. The major customer centred initiatives has been established by Jammu and Kashmir Bank with the help of information and communication technology and the prevalence of these initiatives has brought maximum level of moderate satisfaction and relief on part of customers.Technology application has remained the thrust area of the Bank for last many years with an objective to offer state of the art world class banking facilities to its customers. The Bank has continued to leverage information technology as a strategic tool for its business operations, to gain competitive edge in customer service as well as improving productivity and efficiency. The Bank’s IT strategy emphasizes enhanced level of customer services through 24x7 availability, multi-channel Banking and cost efficiency through optimal use of electronic channels, wider market reach and opportunities for cross- selling. The Bank’s focus is on harnessing technology for integrating diverse products and services. Keeping this in view, the Bank continued to widen the scope of multiple delivery channels such as ATM installations, Core Banking, Internet Banking and SMS Banking at more & more centres.

1 INTRODUCTION

Information and communications technology has played a significant role in banking over the years. In fact ICT has made the banking industry more competitive. ICT allows the banks to cater to the needs of customers by strengthening their internal control systems which are then backed by effective communications mechanisms. Widespread use of ATMs, Internet banking, phone banking, 24/7 services, plus the ability to offer an expanded portfolio of products and services have enabled banks to improve their service to customers. ATMs were one of the first significant improvements in technology as they gave banking customers greater access to their cash. Now they no longer had to queue up in banks to obtain their money, and could do so at whatever time of day they desired, as cash machines are available 24 hours a day, seven days a week. The rise of Internet and phone banking has made banking even more convenient. Customers can now check their balance and pay bills online without having to leave the comfort of their own home.

Keeping in view, Nworuh and Ahaiwe, (2003) argued that “Information technology (IT) is the core tool of competitive strategies used by successive organizations for gaining competitive edge over others”. Jammu Kashmir Bank is a private sector State owned bank founded on 1 October 1938. The bank offers banking and financial products and services to its customers and is head-quartered in Srinagar, Jammu and Kashmir, India. It is the first of its kind bank to have designated as the RBI’s agent for all the banking related businesses. The total employee strength of the bank is over 14000 employees with more than 840 computerised bank branches and over 2000 ATMs across the entire country.J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialised bank in the rest of the country. It is also the only private sector bank designated as RBI’s agent for banking business, and carries out the banking business of the Central Government, besides collecting central taxes for CBDT. J & K Bank follows a two-legged business model whereby it seeks to increase lending in its home state which results in higher margins despite modest volumes, and at the same time, seeks to capture niche lending opportunities on a pan-India basis to build volumes and improve margins. J&K Bank operates on the principle of 'socially empowering banking' and seeks to deliver innovative financial solutions for household, small and medium enterprises. The Bank, incorporated in 1938, and is listed on the NSE and the BSE. Our mission is two-fold: To provide the people of Jammu

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&Kashmir international quality financial service and solutions and to be a super-specialist bank in the rest of the country. The two together will make us the most profitable Bank in the country. To catalyse economic transformation and capitalise on growth. "Our vision is to engender and catalyse economic transformation of Jammu and Kashmir and capitalise from the growth induced financial prosperity thus engineered. The Bank aspires to make Jammu and Kashmir the most prosperous state in the country, by helping create a new financial architecture for the J&K economy, at the center of which will be the J & K Bank.

Pooja Malhotra& Bal winder (2009) Singh found that Internet banks have performed well in offering a wider range and more advanced services of Internet banking in comparison with public sector banks. Among the determinants affecting the extent of Internet banking services, size of the bank, experience of the bank in offering Internet banking, financing pattern and ownership of the bank are found to be significant.

2 INTERNET BANKING

Internet Banking is a convenient way to do banking for both corporate and retail clients as they can access their accounts anytime and from any location via the World Wide Web.

Avoid the queue or delays and try our new simple and secure Internet Banking facility.

Therefore, Net Bank is a virtual counter of the bank to provide network technology for the customer to complete some traditional services such as opening an account, inquiries, transfer, online securities, investments and financial management. Baike (2017) observed that By comparison with traditional bank services, online banking cuts down operating cost. There is no time or location limits, the bank can offer services anytime and anywhere, even anyhow. Furthermore, net bank provides a variety of personalized services, such as insurances, securities and other financial products. Pooja Malhotra & Bal winder (2009) Singh found that Internet banks have performed well in offering a wider range and more advanced services of Internet banking in comparison with public sector banks. Among the determinants affecting the extent of Internet banking services, size of the bank, experience of the bank in offering Internet banking, financing pattern and ownership of the bank are found to be significant. There are numerous papers that sought to study the present status and services of Internet banking internationally for instance, Egland et al. (1998), Sathye (1997), Diniz (1998), Jayawardhena and Foley (2000), Furst et al. (2000a, b, 2002a, b), Carlson et al. (2001), Sullivan (2000, 2001), Chung and Paynter (2002), Suganthi et al.

(2001), Vijayan and Shanmugam (2003), Guru et al. (2003), Jasimuddin (2001), Awamleh et al. (2003), Bojinov (2003), Yeap and Cheah (2005), Awamleh and Fernandes (2005), Ayadi (2006), Hamid et al. (2007), Floros (2008), and Thulani et al.

(2009). These studies investigated the status of Internet banking and banking services offered by Internet banks in developed countries like the US, the UK, Australia, New Zealand, Malaysia, United Arab Emirates and developing countries like Bulgaria, Saudi Arabia, Jordan, Tunisia, Greece and Zimbabwe. Despite the very late adoption of Internet technology in doing transaction online by banking institutions in developing countries, they are very fast catching up with the developed banking systems. These banks have been successful in implementation of introductory phase of Internet banking. However, the adoption of Internet banking services to a large extent is dependent on the value added services they can offer. Apart from this, least research has been conducted on Jammu and Kashmir Bank with regard to their facilities.

3 MOBILE BANKING

The facility shall be available to pre-paid as well as post-paid mobile subscribers subject to condition that SMS service should be active on the number. The facility shall be available through GPRS / Wi-Fi (Internet). Mobile banking application is compatible on Android and IOS phones with Internet facility.The customers can download J & K Bank Mobile Banking App from their respective App Store and install the same on his / her mobile handset. The following new services have been made available through New Mobile Banking Application:

 Online registration using Debit card

 Fund transfer within Bank to other Accounts

 Mobile to Mobile Funds Transfer

 Interbank Fund Transfer using NEFT and RTGS.

 Funds Transfer using IMPS

 Balance Inquiry

 Mini Statement

 Cheque Status

 Cheque Stop

 Personalized Dashboard

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 Upload Profile Picture

 Upload Wallpaper

 Reset MPIN online using Debit Card

 Reset Application Password online

 Branch Locator Service

 ATM Locator Service

 Products and Offers

4 ATM SERVICE

Most ATM began as joint ventures owned by a central group of bank members. A network provides an array of services that link together the ATM of member banks. The activities of the network are governed by a set of rules that are agreed to and implemented by government agency. The basic operational activities of the network are to support ATM cash withdrawals by the deposit account holders of any member bank. This function requires the network to electronically switch the transaction information from the ATM to account holder’s bank and back again. The ATM has brought calibration of different banking sectors and has brought all banks on single platform. Accepting Maestro™ / Cirrus™ / MasterCard™ / VISA™ / NPCI based ATM/ Debit/ Credit cards has been provided by Jammu and Kashmir Banks. Keeping the importance of ATM system under consideration, Carlton and Frankel (1995) examine the effect of a merger for two ATM networks in Chicago Illinois, and found that the merger led to a significant growth rate of total transactions. It therefore implies that co-operation among banks in ATM deployment policy increases transactions among ATM user and reduces banks’ cost of operating such transaction by half. Mounting the significance of ATM cards Ahawe, J. (2016) remarked that it has brought collaboration amongst banks and other service providers in the provision of cheap and efficient ATM services. According to Hannan, Kiser and Prager (2003), the ATMSs are important for wholesale fees are paid by banks to other banks or ATM networks owners.

Thus, keeping in view the researcher generalised the ATM initiatives launched by Jammu and Kashmir Bank has proved enough successful. As the chief features reported in the ATM services are 24-hour access to Cash, View Account Balances & Mini-statements, and Change ATM PIN for security purposes.

5 INTERNET PAYMENT GATEWAY

Internet Payment Gateway (IPG) is an e-commerce application service that authorizes payments for e-businesses e.g online payments (fee/fines/deposits). The internet payment gateway is the infrastructure that allows organizations to accept credit card/ Debit card/ e- Banking/ IMPS etc. payments over their web portals/websitesA payment process in IPG is a transaction between the users and organizations, with transfer of funds in between following accounts. Transaction in IPG results in debiting Customer account (Credit Card/Debit Card/ Internet Banking) and crediting Organization account through interchange of secure electronic messages over Internet. IPG services will enable to receive funds online and is feasible for:

a) Collection for goods and services supplied by Firms/Corporates/Institutions.

b) Fee collection by Educational Institutions.

c) Collection of dues by Government/Quasi Government Bodies.

d) Local taxes like water tax, house tax, electricity bill etc. by Semi Govt. bodies.

e) Collection of Recruitment fee.

Thus, online payment is a form of electronic payment, which is provided by a third party payment interface between banks for real-time payment. Baike (2017) reported “Compared with the traditional payment, online payment systems are more convenient, fast, efficient and economical. Users can use their own PC or mobile phone with Internet to complete the entire payment process in a very short time”. Again the researcher generalise that the initiative of Internet Payment Gateway (IPG) adopted by Jammu and Kashmir bank is highly beneficial for bringing economic uplifting of marginalised state of Jammu and Kashmir.

6 KIOSK BANKING MODEL

Jammu &Kashmir Bank Kiosk Banking model provides a real time, user friendly basic banking services to the consumers in their neighbourhood through Business Correspondents (BC). The basis features in this initiative is Open Basic Saving Bank account, Deposit Cash, Withdraw Cash, Transfer Funds, Enquire Balance and get Mini- statement of Account, Use Micro ATM (Cash Withdrawal through any Debit Card/ Rupay Card from BC), Avail AEPS (Aadhaar Enabled Payment System) Services and E-KYC.

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4 7 BASIC SAVING BANK ACCOUNT

Customers can open Basic Saving bank accounts at any BC Location of the Bank. In case the customer is having an Aadhaar Number, no KYC document is required for opening of the account. The account is opened through e-KYC service of UIDAI. For customers who do not have Aadhaar number, KYC documents like address proof and ID poof is required to open the account. Once the account is opened at BC location, in addition to services available at banks branches, customers can avail following services from J&K Bank BC Locations using biometric authentication; Cash Deposit, Cash Withdrawal, Transfer, Balance Enquiry, Mini-Statement. The report of HDFC Bank interprets that the additional features of BSBDA include zero balance and a free Rupay card. Besides these, customers can avail other features of BSBDA, such as bill payment options, statements and alerts.

8 WORLD CREDIT CARDS

Central/ State Government Employees drawing salary through our bank: 6 times Gross monthly salary or 10 times net monthly salary, whichever is lower. IAS cadre officers and KAS officers, Doctors, University/ College Asst. Professors, Associate Professors and Professors, Directors , Deputy Directors and other officers in equivalent or higher cadres, of J&K State Government and autonomous bodies -7 times Gross monthly salary or 12 times net monthly salary, whichever is lower. Self-employed/Businessman/ other salaried class:

50% of Annual Gross Income. Pensioners: 3 months gross pension. In consonance to world credit card moniker suggests, the World credit card can be used widely across any merchant outlet across the world. Frequent travellers can benefit from using this card as the World credit card offers exceptional travel privileges. World credit card holders can conveniently make cash free transactions anywhere around the globe. Be rewarded with every purchase made using a World credit card, enjoying amazing rewards, personalised services, exclusive deals, discounts and unparalleled benefits.

9 BHIM AADHAAR PAY- J & K BANK

BHIM Aadhaar Pay- J & K Bank’ App is a digital payment acceptance mobile application for merchants to receive digital payments from customers over the counter through Aadhaar authentication. ‘BHIM Aadhaar Pay- J & K Bank’ App uses fingerprints for the authentication. On the basis of this authentication, the money is paid from customers Aadhaar linked account to merchants account. Some of the benefits of ‘BHIM Aadhaar Pay – J & K Bank’ are that Customers need not to have an android phone or other technology to make payments.There is no need to carry debit card, credit card or digital wallets and therefore no need to remember PINs, MPINs and passwords.Affordable payment solution for merchants as well as customers.No rentals to merchants providing ‘BHIM Aadhaar Pay – J&K Bank’ services.MDR of only 0.25% of transaction amount is applicable to merchants.Safe and secure transactions using Aadhaar based biometric (fingerprint) authenticationFor Customer, the minimum per transaction limit is Rs. 50/- and maximum limit is Rs. 10,000/- per transaction. For merchant, the maximum daily limit is Rs.

10,000/- and monthly limit of Rs. 50,000/- is applicable. At present the number of transactions is capped to maximum of 3 transactions per Aadhaar in a single day. The future of Aadhaar Pay, envisaged as a central plank of the government’s digital payments drive, hangs in the balance. Experts said it will probably now be restricted to rural areas, where most people get welfare payments from the government and have pre-existing Aadhaar-linked bank accounts.

10 CONCLUSION OF THE STUDY

The role of Information and Communication Technology (ICT) has been emerged significant in banking sector.Information and Communication Technology (ICT) allows the banks to cater to the needs of customers by strengthening their internal control systems which are then backed by effective communications mechanisms. Widespread use of ATMs, Internet banking, mobile banking , 24/7 services, plus the ability to offer an expanded portfolio of products and services have enabled Jammu and Kashmir Banks to improve their service to customers in the whole state of Jammu and Kashmir. ATMs were one of the first significant improvements in technology as they gave banking customers greater access to their cash.

World credit card, BHIM Aadhaar Pay, NET banking are the significant initiatives made by Jammu & Kashmir Banks. The prevalence of these initiatives has brought hassle-free

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service for customers. Now they no longer had to queue up in banks to obtain their money, and could do so at whatever time of day they desired, as cash machines are available 24 hours a day, seven days a week. The rise of Internet and phone banking in J & K banks has made banking even more convenient. Customers can now check their balance and pay bills online without having to leave the comfort of their own home.

11 RECOMMENDATIONS

The study made some recommendation which is as under:

1. Banks should consider the application of biometrics in ATM deployment to reduce the level of fraud. ·

2. More encryption should be provided to online facility, so the cybercrimes may not reveal any kind of scope while availing online facilities.

3. Banks should extend their services to rural and tribal areas of Jammu and Kashmir State. So as to reduce the risk of carrying cash. ·

4. The existing level of information technology infrastructure should be enhanced more and more especially in remote areas of the Jammu and Kashmir State.

5. Government should create awareness amongst its citizens on the benefits of using online banking facilities.

6. Efforts should be made to make online banking available for 24×7. As NEFT, J & K Bank mPay facilities are not yet available for 24×7.

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Heliography

 https://image.hanspub.org/pdf/ECL20150200000_25310623.pdf

 https://baike.baidu.com/item/%E7%AC%AC%E4%B8%89%E6%96%B9%E6%94%AF%E4%BB

 http://www.eugateway.com/ecommerce-in-europe https://www.jkbank.com/