Monday, June 3, 2019
A Study On Internet Banking In Nepal
A knowledge On net profit Banking In NepalThis research is the effort for field of battle and analyzing the lucre Banking in Nepal Bank Limited. Internet Banking can be defined as the use of technology to communicate instructions to and receive information from a fiscal institution where an account is held. Internet Banking includes the systems that enable financial institution customers, individuals or businesses, to entree accounts, transact business or obtain information on financial products and put to work through with(predicate) a man or private network, including the Internet.Since the launch of Internet the large planet has become a sm every last(predicate)er one. It has rendered enormous impacts on business sectors. Remarkable get outment in education and Communication engineering (ICT) has introduced a global revolution in banking industry. The global trend in business arena set some challenge that cannot be fulfilled with the help of the traditional banking syst em.The survey of current banking system in Nepal reveals the fact that it requires rapid modification and adaptation to keep harmony with the world frugality business. It becomes more obvious by observing the increased number of customers in some modern bank while others are losing them.The existing banking system in our country is slow and error-prone. In one hand, fails to meet the customers demand and it causes some significant losses both for the banking authority and traders. E-Banking, on the other hand solves the above problems. Furthermore, it opens up some other salient aspects such as increased foreign trade and foreign investment.Most plan allow customers to perform all routine transactions, such as account transfers, balance inquires, bill requitals and stop payment requests everything save its very easy to set up an account. We can access our account information anytime day or night and we can do it from anywhere. A few online banks update information in real time, while others do it daily.1.2 Introduction of Origin and Growth of Bank in NepalThe growth of banking in Nepal is not so long. In comparison with other developing or genuine country, the institutional development in banking system of Nepal is far behind. Nepal had to wait for a long time to come to this present banking position. The origin of bank in Nepal and its informant of growth is controversial.Even though the specific date of the beginning of money and banking deal in Nepal is not obvious, it is speculated that during the reign of the female monarch Manadev, the coin Manank and Gunank during the reign of the King Gunakamadev were in use.After the establishment of Nepal Bank Limited on 30th Karkik, 1994 (1938), modern banking system started in Nepal.Under the Nepal Rastra Bank Act 2012 (1956), Nepal Rastra Bank was set up in 2013(1957) Baisakh 14th in Nepal. But this act has been repealed and the Nepal Rastra Bank Act 2058(2002) has been enacted by the parliament. After its establishment, it issued the Nepali notes on 7th Falgon 2016 for the first time.Gradually, bank develop their services in Nepal according to requirement of customers and to compete market so today we can transact via non cash elements alike(p) Internet Banking, Credit Card, atmosphere Card and SMS banking etc.1.3 Nepals ICT BackgroundNations worldwide boast recognized development opport social unities and challenges of the emerging information age characterized by Information and Communication Technologies (ICT). These technologies are operate national development efforts worldwide and a number of countries in both developing and the developed world are exploring ways of facilitating their development process through development, deployment and the exploitation of ICT within their economies and societies.Nepals journey into the world of information technology began some three decades back with the use of IBM 1401 for the population census, 1971. Royal Nepal Academy for Scienc e and Technology (RONAST), for the first time, used the internet. Mercantile Private Limited started email services for commercial purpose in June 1994. In 1995 government purchased the machine for further data processing in the Bureau of Statistics and established a separate organization called Electronic Data Processing Center (EDPC) and after 6 years it reborn to National Computer Center (NCC).Government has formed High Level Commission for Information Technology (HLCIT), which is playing the role of facilitator between private and public sector in the development of ICT in Nepal.1.4 Introduction of Internet BankingInternet banking refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC) or other intelligent device.Internet banking products and services can include sell products for corporate customers as intimately as retail and fiduciary products for consumers. Ultimately, the prod ucts and services obtained through Internet banking may mirror products and services offered through other bank voice communication channels. Some examples of wholesale products and services includeCash management.Wire transfer.Automated clearinghouse (ACH) transactions. report presentment and payment.Examples of retail and fiduciary products and services includeBalance inquiry. memorys transfer.Down despatching transaction information.Bill presentment and payment.Loan applications.Investment activity.Other value-added services.Other Internet banking services may include providing Internet access as an Internet Service supplier (ISP). The OCC has determined that a national bank subsidiary may bring home the bacon home banking services through an Internet connection to the banks home banking system and, peripheral to that service, may also provide Internet access to bank customers using that service. Historically, banks have used information systems technology to process checks ( item processing), drive ATM machines (transaction processing), and train reports (management information systems). In the past, the computer systems that made the information systems operate were rarely noticed by customers. Today, Web sites, electronic mail, and electronic bill presentment and payment systems are an important way for banks to reach their customers.1.5 Statement of the ProblemEstablishing Internet Banking infrastructure has been a challenging task for the developing countries like Nepal. In the background of Nepal there are ample of problems in Internet Banking some of them are given below Computer and Banking Literacy In aggregate here is low aim of IT literacy. Very few people are computer literate in Nepal and very few people understand banking system or banking process as yet educated people also there.Infrastructure Development Though banks reach with their services in rural area ISP or NTC services is not accessible there for internet services and vice versa.Risk Management In Nepal, Internet Banking is at its infancy right now. However, no Internet Banking frauds have been form yet. Lack of understanding of internet technology may be the reason. But precaution must be taken.In order to mitigate the risks associated with all e-banking businesses, banks should have in place a comprehensive risk management process that assesses risks, control risk exposure and monitors risks.Security Security of a transaction, authenticity of a deal, identification of a customer etc are important technological and systems issues, which are major sources of concern to e-banking. Customers are afraid from online attack. Various online attacks are also available.1.6 Objectives of the StudyThe main objectives of proposed research are to study, analyze and understand the Internet Banking of Nepal Bank Limited. Some of the other objectives are as follows To hear the problems in existing Internet Banking services of NepalAre public satisfy or not from Internet banking Services ? If not what provide be the effective service delivery mechanism.To identify the prerequisites to get the Internet Banking servicesThe research tell prerequisites to get Internet Banking services (for e.g. Computers, telephones, internet, customer should be account holder of bank)To examine the service delivery of different banks of NepalThe research includes various types of Internet Banking services provided by different banks to general public.1.7 Scope of the StudyThe study will be mainly focus on three components of the study area Social aspects In social aspect the studied is focus on public participation according to their satisfaction, knowledge, beliefs, set etc.Technical aspects This aspects is concerned with the technically how to develop system and technology used on projects.Economic aspects In the economic analysis part, the study will focus on the doable areas of economic development by using this Internet Banking.1.8 Limitation of th e StudyThis research is the small effort for study and analyzing the Internet Banking services of Nepal which has limited time so it cannot focus on all areas and may not be able to explore many fields. This research work is done within limited time frame during the MBS dissertation. There are so many constraints while doing the work such as inadequate time, load shedding, and resources etc. To understand ruleology of Internet Banking service is very difficult because banks only provide surface level of information because of their security concern.In scandalize of great effort, there are many limitations of this research work. The major limitations are as follows In the field of E-banking, there are so many arenas like ATM, Tele Banking, Mobile Banking etc. but this research pushs not focus on all the e-banking services. Research works mainly focus on Internet Banking.Fund transfer is possible within the branch of bank. It means once cannot transfer amount from one bank to anoth er bank.Banks have their own policy but there is no any standard policy for Internet Banking in Nepal.In the field of Internet Banking security is must but this research doe not cover all the aspects of security.General customers and corporate customers of Internet Banking system have same kinds of facilities.1.9 Organization of the StudyThis study is organized and decorated in seven chapters. Each chapter and unit will be on a prescribed format of thesis writing to the partial fulfillment of MBS program. Each unit gives the clear picture or roadmap of the study.Chapter OneThis chapter deals with Introduction of The Study. In this chapter, separated unit for background, significances objective and limitation of the study has mentioned.Chapter TwoThis chapter focused Review of Literature. In this chapter, various relevant such as different books, journals, article and previous thesis mention has mentioned.Chapter ThreeThird chapter presented Research Methodology. In this chapter, res earch design, sources of the data, method of data collection and analysis has mentioned.Chapter FourThis chapter deals with Analysis of Internet Banking. This chapter provides the different analysis like strength, weakness, opportunity, threat (SWOT) analysis and feasibility analysis of Internet banking.Chapter quinFifth chapter deals with Internet Banking Security. Security in Internet Banking comprises both the computer and communication security. Therefore this chapter consist different security principles, cryptographic key management, wear etc.Chapter SixThis chapter focused on System Analysis and design to present the current Internet Banking system. This chapter provides requirement analysis, process modeling, data dictionary, hardware and software package requirement to execute program.Chapter SevenSeventh chapter presented with Summary, Conclusions and Recommendation of the Study.1.10 Research DesignThere are two types of research glide pathes qualitative and quantitati ve. In the quantitative approach outlets are based on numbers and statistics that are presented in figures, whereas in the qualitative approach where focus lies on describing an event with the use of words.This study is the result of qualitative research using comparative and analytical methods. The comparative research was conducted in two ways Firstly, the comparison is carried out by investigating the handiness of basic services of Internet Banking in different banks of Nepal. Secondly, the comparison is also carried out by investigating the different features offered by banking institutions in Nepal. For that purpose, reviews of website from banks are conducted. indeed to gain practical knowledge of Internet Banking in the Nepali context, this research is conducted as a qualitative study to explore the perception of Internet Banking among Nepali Banks. Hence, the aim is not to make any simplification but instead establish a closer contact with the objectives of prior research which intend to provide us a deeper understanding of the participants attitudes and perceptions. Finally my intention with this research is to understand Internet Banking first describe and explore, find and analysis detailed information around Internet banking services provided by different banks of Nepal so qualitative approach is the most suitable method for my research.1.11 Source of DataBoth capital as well as secondary data have been collected in order to achieve the real and factual result out of this research. All possible and useful data available have been collected. The major sources of data are as follows a. Primary SourceThe primary data are collected from primary sources. The primary sources of data are the opinion survey through questionnaire, field visit and information received from the respondents. Some of the information was also collected from question with the respondents.b. Secondary DataThe secondary data are collected from secondary sources. The secondary sources of data are the information received from books, journals and article concerned with the study for example website of the Nepal Bank Limited, thesis and dissertation submitted at Shanker Dev Campus, Central Library T.U.