chapter 5 problems and prospects of co-operative banks...

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CHAPTER 5

PROBLEMS AND PROSPECTS OF CO-OPERATIVE BANKS

COMPUTERISATION IN PUNE

5.1 Introduction

Nowadays, Banks are increasingly adopting IT based solutions, for providing better

services to their customers at a minimal cost. The role of IT has become so integrated and

pervasive with banking that it is impossible to think of banking processes without an

effective IT system in place. This chapter focuses on the technological developments in

co-operative banking sector. It also focuses on employees and customers reaction about

bank computerisation.

This chapter is based on twin objectives as given below:

1) To study the problems faced by the co-operative banks in implementing the

computerised system and to suggest the remedial measures.

2) To forecast the prospects of the computerisation in all different banks in general

and in co-operative banks in particular.

The researcher has analysed the primary data in this context and presented it in the

following three parts of this chapter.

PART I : Computerisation of co-operative banks in Pune

PART II : Views of the co-operative banks employees regarding the bank

Computerisation

PART III : Views of the co-operative banks customers regarding computerised

banking services

112

`

PART – I: Computerisation of co-operative banks in Pune

The researcher has selected 18 co-operative banks in Pune city for the purpose of the

study. This research is mainly based on primary data. The primary data is collected from

co-operative banks, their employees and customers by serving them a structured

questionnaire. The researcher has also interviewed the Heads of the IT departments / EDP

Incharge of the respective co-operative banks in Pune.

The questionnaire contains the information of the selected co-operative banks, with

respect to the year of establishment, their branches, their total deposits and advances for

the period from April 2003 – 04 To 2007 – 08. The usage of computer by these banks is

also ascertained along with the transactions computerised by them. The researcher has

asked about the e-banking services, like ATM, Tele-banking, PC banking, Internet

banking, and mobile banking to the Heads of IT department of these banks.

5.2 ORGANISATION:

This section covers the information about (a) the year of establishment (b) branches of

the selected co-operative banks and (c) total advances and deposits of these co-operative

banks.

(a) Selected co-operative banks and their year of establishment

Table 5.1 indicates the name and year of establishment of selected co-operative banks in

Pune city.

113

Table 5.1 Establishment wise list of selected co-operative banks in Pune city

Sr.

No

Name of the Bank Year of

establishment

1 The Cosmos Co-operative Bank Ltd., Pune 1906

2 Janata Sahakari Bank Ltd., Pune 1949

3 Saraswat Co-operative Bank Ltd., Pune 1918

4 The Thane Janata Sahakari Bank Ltd., Pune 1972

5 Mahesh Sahakari Bank Ltd.,Pune 1972

6 Vishweshwar Co-operative Bank 1972

7 Rupee Co-operative Bank Ltd., Pune 1912

8 Suvarnayug Sahakari Bank Ltd., Pune 1973

9 Pune Peoples Co-operative Bank Ltd.,Pune 1952

10 Vidya Sahakari Bank Ltd., Pune 1974

11 Rajarshee Shahu Sahakari Bank Ltd., Pune 1985

12 Udyam Vikas Sahakari Bank Ltd., Pune 1989

13 Karad Urban Co-operative Bank Ltd., Pune. 1917

14 Shivajirao Bhosale Co-operative Bank Ltd.,Pune 1972

15 Jeejamata Maheela Sahakari Bank Ltd., Pune 1974

16 Shree Laxmi Co-operative Bank Ltd., Pune 1972

17 Bhaginee Nivedita Co-operative bank. Ltd., Pune 1976

18 Pune Merchant's Co-operative bank Ltd., Pune 1924

Source: Field work

It has been observed from the Table 5.1 that Cosmos Co-operative Bank, Pune is the

oldest co-operative bank established in 1906 and the latest co-operative bank is Udyam

Vikas Sahakari Bank, which was established in 1989. The maximum numbers of 9 co-

operative banks were established in the period 1971 – 80, followed by 3 co-operative

banks in the period 1911-20. There are 2 co-operative banks which were established

between the period 1941-55, and 2 others between the periods 1981-90. Hence, it has

been observed that the maximum numbers of 13 co-operative banks (72.22%) were

established after independence.

114

(b) Branches

Table 5.2 indicates the total number of branches of these co-operative banks in

Maharashtra and in Pune city.

Table 5.2 Number of branches of selected co-operative banks in Maharashtra and in

Pune.

Sr.

No

Name of the Bank Branches in

Mahara-

shtra

Branches

in Pune

In Pune

(%)

1 The Cosmos Co-operative Bank Ltd., Pune 94 29 30.85%

2 Janata Sahakari Bank Ltd. Pune 37 16 43.24%

3 Saraswat Co-operative Bank Ltd. Pune 170 17 10.00%

4 The Thane Janata Sahakari Bank Ltd. Pune 65 17 26.15%

5 Mahesh Sahakari Bank Ltd. 10 9 90.00%

6 Vishweshwar Co-operative Bank 14 13 92.85%

7 Rupee Co-operative Bank Ltd. Pune 41 21 51.21%

8 Suvarnayug Sahakari Bank Ltd. Pune 11 9 81.81%

9 Pune Peoples Co-operative Bank Ltd. 14 13 92.85%

10 Vidya Sahakari Bank Ltd. 11 11 100.00%

11 Rajarshee Shahu Co-operative Bank Ltd. 6 6 100.00%

12 Udyam Vikas Sahakari Bank Ltd., Pune 4 4 100.00%

13 Karad Urban Co-operative Bank Ltd. Pune. 48 7 14.58%

14 Shivajirao Bhosale Co-operative Bank

Ltd.

12 9 75.00%

15 Jeejamata Maheela Sahakari Bank Ltd. 9 6 66.66%

16 Shree Laxmi Co-operative Bank Ltd. 4 4 100.00%

17 Bhagini Nivedita Co-operative Bank. Ltd. 10 10 100.00%

18 Pune Merchant's Co-operative bank Ltd.

Pune

8 8 100.00%

TOTAL 568 209 36.80%

Source: Field work

115

No. of banks In Pune city

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

The

Cos

mos

Jana

taS

aras

wat

The

Than

eM

ahes

hV

ishw

eshw

arR

upee

Co-

Suv

arna

yug

Pun

e

Vid

ya R

ajar

shee

Udy

am K

arad

Shi

vajir

ao

Jeej

amat

aS

hree

Lax

mi

Bha

gini

Pun

e

Figure 5.1 Number of branches of selected co-operative banks in Pune city.

It has been observed from the Table 5.2 that Saraswat Co-operative bank has the highest

number of branches which is 170, out of which 17 branches (10%) are located in Pune

city. It is followed by The Cosmos Co-operative Bank Ltd., Pune having 65 branches in

Maharashtra, out of which 29 branches (30.85%) are located in Pune city and the

remaining 29 branches are outside Maharashtra. Thane Janata co-operative bank has a

total number of 65 branches in Maharashtra, out of which 17 branches (26.15%) are in

Pune city.

Karad Urban Co-operative bank has a total number of 48 branches in Maharashtra and 7

branches (14.58%) in Pune city. There are 41 branches of Rupee Co-operative Bank in

Maharashtra and 21 (51.21%) branches in Pune city. Shri Laxmi Co-operative Bank Pune

has the lowest number of 4 branches and all of these are in Pune only.

116

Further it has been observed that out of the total number of 568 branches of selected 18

co-operative banks, the branches in the Pune city are 209 (36.80%).

(c) Deposits and Advances:

Table 5.3 represents increasing / decreasing status of the Deposits and Loans and

Advances of the selected Co-operative banks.

Table 5.3 Year wise Deposits, Loans and Advances (L & A) of the selected co-operative

banks (In Crore) Sr.

No

Name of the Bank

Deposits

Loans &

Advances

2003-04 2004-05 2005-06 2006-07 2007-08

Deposits 2483 2851.3 3367.02 4265.56 5342.66 1 The Cosmos Co-

operative Bank Ltd.,

Pune

L & A 1402.18 1581.27 1965.97 2448.38 3200.71

Deposits 1631 1605.4 1724.47 1851.96 2172.18 2 Janata Sahakari Bank

Ltd. Pune L & A 981.47 950.58 1052.67 1202.79 1265.76

Deposits 0 0 0 8924.94 11430.3 3 Saraswat Co-operative

Bank Ltd. Pune L & A 0 0 0 6370.46 7448.31

Deposits 872.1 938.82 1073.06 1328.5 2039.17 4 The Thane Janata

Sahakari Bank ltd. Pune L & A 542.2 582.47 680.43 902.92 1285.46

Deposits 220.17 251.96 298.04 342.09 357.31 5 Mahesh Sahakari Bank

Ltd. L & A 152.28 161.53 184.77 215.50 224.55

Deposits 259.8 277.08 324.19 379.89 503.35 6 Vishweshwar Co-

operative Bank L & A 160.57 169.55 213.1 253.72 333.4

Deposits 1683 1536 1670 1488 1625 7 Rupee Co-operative

Bank Ltd. Pune L & A 1354 1184 1046 977.64 919.29

Deposits 196.9 197.69 198.82 195.66 213.31 8 Suvarnayug Sahakari

Bank Ltd. Pune L & A 117.25 119.22 116.94 119.76 119.37

Deposits 0 0 2.92 2.73 3.29 9 Pune Peoples Co-

operative Bank Ltd. L & A 0 0 1.1051 1.3179 1.586

Deposits 246.28 221.41 226.623 208.56 211.01 10 Vidya Sahakari Bank

Ltd L & A 123.16 116.74 118.74 104.88 101.59

117

Deposits 86.38 92.21 98.74 98.21 118.46 11 Rajarshee Shahu Co-

operative Bank Ltd. L & A 53.48 56.23 60.63 68.75 85.12

Deposits 24.17 28.56 33.28 32.12 38.84 12 Udyam Vikas Sahakari

Bank ltd., Pune L & A 16.48 19.94 18.85 20.53 26.33

Deposits 363.10 407.83 483.24 566.01 719.37 13 Karad Urban Co-

operative Bank Ltd.

Pune..

L & A 232.43 252.03 302.11 389.70 455.11

Deposits 1.38 1.35 1.58 1.85 2.19 14 Shivajirao Bhosale co-


Deposits 89.29 99.90 118 137.65 180.72 15 Jeejamata Maheela

Sahakari Bank Ltd. L & A 61.86 70.91 79.63 101.04 130.72

Deposits 47.23 52.52 55.28 47.45 40.24 16 Shree Laxmi Co-


Deposits 0 246 249 276 327.89 17 Bhagini Nivedita Co-

operative Bank. Ltd. L & A 0 119 148 176 203.93

Deposits 62 65 68 72 84 18 Pune Merchants Co-

operative bank Ltd. L & A 34 37 42 47 55

Source: Field Work (Note : 0 means data not available)

The observations about the deposits, loans and advances of the selected co-operative

banks are summarized as follows:

1. The highest amount of deposit of Rs. 11430.30 Cr. is collected by Saraswat Co-

operative Bank Ltd. in the year 2007-08, indicating an upward rise of 1.28% in its

deposits of Rs. 8924.94 Cr. in the year 2006-07.

The Saraswat Co-operative Bank Ltd. has given loans and advances of Rs. 7448.31

Cr. in the year 2007-08 and Rs. 6370.46 Cr. in the year 2006-07. Thus the lending is

65.16% and 71.37% in the year 2007-08 and 2006-07 respectively.

2. The second highest amount of deposit of Rs. 5342.66 Cr. is collected by the Cosmos

Co-operative Bank Ltd., Pune in the year 2007-08, indicating an upward rise of

46.48% percent in its deposits of Rs. 2483 Cr. in the year 2003-04.

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The Cosmos Co-operative Bank Ltd., Pune has given loans and advances of Rs.

3200.31 Cr. in the year 2007-08. This lending is 1.66% of the total deposits of this

bank whereas this bank has given loans of Rs. 1402.18 Cr. in the year 2003-04. This

lending is 56.46% of the total deposits.

3. The lowest amount of deposit of Rs. 2.19 Cr. was collected by Shivajirao Bhosale

Co-operative Bank Ltd. in the year 2007-08, which indicates 1.58% increase in the

deposit of Rs. 1.38 Cr. Collected in the year 2003-04. The total lending of Rs. 1.39

Cr. was distributed by this bank in the year 2007-08. It is 63.47% of total deposits of

this bank in the year 2007-08.

4. The researcher has compared lending with deposits of these selected banks. The total

distribution of loans and advances and total deposits of these banks are given in the

Table 5.4

Table 5.4 Comparison of Loans and Advances with Deposits (Rs. Crores) in 2007-08

Sr.

No.

Name of the Bank Deposits Loans

&

Advances

% of

deposits

distributed

as loans

1. Saraswat Co-operative bank Ltd. 11430.30 7448.31 65.16%

2. The Cosmos Co-operative Bank Ltd., Pune 5343.66 3200.71 54.89%

3. Janata Sahakari Bank Ltd. 2172.18 1265.76 58.24%

4. The Thane Janata Sahakari Bank Ltd. Pune 2039.17 1285.46 63.02%

5. Rupee Co-operative Bank Ltd. 1625.00 919.29 56.55%

6. Karad Urban Co-operative Bank Ltd. 719.37 455.11 63.28%

7. Vishweshwar Co-operative Bank Ltd. 503.35 333.40 66.20%

8. Mahesh Sahakari Co-operative bank Ltd. 357.31 224.55 62.74%

9. Bhagini Nivedita Co-operative Bank Ltd. 327.89 203.93 62.07%

10. Suvarnayug Co-operative Bank Ltd. 213.31 119.37 55.86%

119

11. Vidya Sahakari Bank Ltd. 211.01 101.59 47.86%

12. Jeejamata Co-operative Bank Ltd. 180.72 130.72 72.22%

13. Rajarshee Shahu Sahakari Bank Ltd., Pune 118.46 85.12 72.03%

14. Pune Merchant Co-operative Bank Ltd. 84.00 55.00 65.47%

15. Shree Laxmi Co-operative Bank Ltd. 40.24 22.18 55.00%

16. Udyam Vikas Sahakari Bank Ltd., Pune 38.84 26.33 68.42%

17. Pune Peoples Co-operative Bank Ltd. 3.29 1.58 33.33%

18. Shivajirao Bhosale Co-operative Bank Ltd. 2.19 1.39 50.00%

Source: Field work

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

% of deposits distributed as loans

Saraswat Co-operative bank

The Cosmos Co-operative Bank

Janata Sahakari Bank

The Thane Janata Sahakari Bank

Rupee Co-operative Bank

Karad Urban Co-operative Bank

Vishweshwar Co-operative Bank

Mahesh Sahakaro Co-operative bank

Bhagini Nevedita Co-operative Bank

Suvarnayug Co-operative Bank

Vidya Sahakari Bank

Jeejamata Co-operative Bank

Rajarshee Shahu Sahakari Bank

Pune Merchant Co-operative Bank

Shree Laxmi Co-operative bank

Udyam Vikas Sahakari Bank

Pune Peoples Co-operative Bank

Shivaji Rao Bhosale Co-operative Bank

Figure 5.2: Comparison of Loans and Advances with Deposits (in Crores) in 2007-08

It has been observed from the Table 5.4 that a maximum 72% of the deposits have been

distributed by Jeejamata Co-operative Bank Ltd. and Rajarshee Shahu Sahakari Bank

120

Ltd., Pune in the year 2007-08. There are 8 Co-operative banks which have distributed

loans of 60-70% of the deposits. There are 6 co-operative banks which have given loans

to the extent of 50-59% of their deposits. Vidya Sahakari Bank Ltd. has given 47.00% of

the deposits by the way of loans and Pune Peoples Co-operative Bank Ltd. has given

33.00% of its deposits by way of loans. Overall it can be concluded that 10 banks have

given more than 50.00% of the deposits by way of loans.

5.3 Traditional Banking:

Table 5.5 indicates the proportion of the customers who are still using traditional way of

banking transactions.

Table 5.5 Bank responses regarding customers using traditional banking transactions

Sr.

No.

Particulars of

Customers

No. of respondent banks giving

the customers percentage using

traditional way of banking

transactions

Percentage

1. Below 25% 03 16.70%

2. 26 – 50% 06 33.30%

3. 51 – 74% 03 16.70%

4. 75 – Above% 06 33.30%

Total 18 100.00%

Source: Field work

121

16.70%

33.30%

16.70%

33.30%

Below 25%26 – 50%51 – 74%75 – Above%

Figure 5.3: Bank responses regarding customers using traditional banking transactions

It has been observed from the Table 5.5 that the maximum number of 6 banks (33.30%)

responded to say that 26 – 50 % of their customers are still using traditional way of

banking transaction. This is followed by 6 banks (33.30%) whose opinion is that 75% and

above of their customers are using traditional banking method for their banking

transactions. Further, 3 banks (16.70%) recorded that 51 to 74% of their customers use

traditional transactional system for banking operations. Last but not the least, 3 banks

(16.70%) have the lowest proportion of customers using traditional banking transactions

which is below 25%.

5.4 Customers views about bank computerisation

Table 5.6 indicates the views of the banks about their customers reaction to the bank’s

efficiency due to computerisation :

122

Table 5.6 View of banks, with respect to the reaction of their customers response to

computerisation :

Sr.

No.

Responses No. of bank

authorities

Percentage

1. Positive 18 100%

2. Negative 0 0%

3. Can’t say 0 0%

Source: Field work

It has been observed from the Table 5.6 that the maximum number of 18 bank authorities

(100.00%) have recorded /stated that all the customers have responded positively to the

improved efficiency from the banks , thanks to computerisation.

5.5 Yearwise status of computerisation in selected co-operative banks:

Due to compulsion from RBI, the back office function was implemented in almost all the

co-operative banks, before 2000. After back office application the next step for

computerisation was Total Branch Automation and the current step is Core Banking

Solutions.

In Pune, a total of 55 co-operative banks are in existence. Out of the total 55 banks, 10

are well established and have implemented the core banking solution (CBS) to provide

automated services to their customers. 25 banks have implemented the total branch

automation (TBA). But the remaining 20 banks, have not yet implemented the TBA or

CBS systems.

For the detailed study, the researcher has selected 18 (33%) out of the 55 co-operative

banks in Pune city. The primary data for the study has been collected from selected 18

co-operative banks in Pune city. Out of the selected 18 co-operative banks, only 6 banks

(33.33%) from Sr. No. 1 to 6 (Table 5.7) have completed the process of computerisation

and implemented the advanced computerised solutions. There are 11 co-operative banks

123

(61.11%) from Sr No. 7 to 17 (Table 5.7) who have yet to adopt Core banking solution

(computerisation). Only one bank (5.56%) Sr. No. 18 (Table 5.7) Bhagini Nivedita Co-

operative bank is using the back office application since 2003. Table 5.7 gives year wise

status of computerisation at selected co-operative banks in Pune.

Table 5.7 Year wise status of computerisation of the selected co-operative banks in Pune

Types of Computerisation Sr.

No

Bank Name

Back Office

Application

(Year)

Total Branch

Automation

(Year)

Core

Banking

Solutions

(Year)

1. The Cosmos Co-operative Bank

Ltd., Pune

1988 1996 2003

2. Janata Sahakari Bank Ltd. Pune 1990 1993 2005

3. Saraswat Co-operative Bank Ltd.

Pune

1990 1992 2004

4. The Thane Janata Sahakari Bank

Ltd. Pune

1992 1996 2005

5. Mahesh Sahakari Bank Ltd. 1995 1996 2008

6. Vishweshwar Co-operative Bank 1996 2000 2008

7. Rupee Co-oeprative Bank Ltd. Pune N/A 1989 PLG

8. Suvarnayug Sahakari Bank Ltd.

Pune

N/A 2000 *N/A

9. Pune Peoples Co-operative Bank

Ltd.

1997 1999 PLG

10. Vidya Sahakari Bank Ltd. N/A 2002 *N/A

11. Rajarshee Shahu Sahakari Bank Ltd.,

Pune

N/A 1996 PLG

12. Udyam Vikas Sahakari Bank ltd.,

Pune

N/A 2001 *N/A

124

13. Karad Urban Co-operative Bank

Ltd. Pune.

N/A 1995 *N/A

14. Shivajirao Bhosale Co-operative

Bank Ltd.

1994 1997 PLG

15. Jeejamata Maheela Sahakari Bank

Ltd.

N/A 1998 *N/A

16. Shree Laxmi Co-operative Bank Ltd. 1993 1994 *N/A

17. Pune Merchant's Co-operative Bank

Ltd. Pune

N/A 1999 *N/A

18. Bhagini Nivedita Co-operative

Bank. Ltd

2003 *N/A *N/A

Source: Field work

[PLG : Planning to implement CBS] [N/A : Data Not Available]

[*N/A :Not Applicable]

It has been observed from the Table 5.7, that there are 6 co-operative banks from Sr.No. 1

to 6 who have adopted computerisation, such as back office application, total branch

automation, and core banking solution in their banking transactions. These banks have

taken a period of 20 years (1988 to 2008) to complete the process of computerisation.

Secondly, there are 11 other banks from serial no. 7 to 17, which have adopted

computerisation partially. They have accepted the Total Branch Automation type of

computerisation. Last but not least, only 1 bank has adopted back office application for

its banking transaction. The year wise analysis of the implementation tells us the

following facts:

1. The Cosmos Co-operative Bank Ltd. was the first to adopt CBS, in the year 2003.

2. This was followed by Saraswat Co-operative Bank Ltd., who adopted core banking

solution in the year 2004.

125

3. In the year 2005, 2 more banks started their banking transactions with the help of core

banking transactions and 2 other banks have started the same computerised facility, in the

year 2008.

4. Presently, 4 banks are planning to implement the core banking solutions whereas the

remaining 4 banks are not interested to invest heavily on the CBS transactional system.

Thus it can be concluded that the co-operative banks under the study are not showing a

satisfactory picture about the computerisation process. The computerisation status of the

Co-operative banks is really far away from the advanced technology based solutions, in

use in the other banks. Therefore to compete with the commercial banks, co-operative

banks should provide better computerised services to their customers with the help of

centralised computer based services like core banking solutions (CBS).

Testing of hypothesis 3

Hypothesis 3: Process of bank computerisation is of recent origin. The

computerisation of banks other than co-operative banks is generally observed to its

maximum extent. But the co-operative banks are slow in adopting the process of

computerisation.

For testing hypothesis 3, the researcher has used the data from the Table 5.7 which

indicates yearwise status of computerisation of the selected co-operative banks.

The process of computerisation in banks begins with Back Office Application (BOA),

which is followed by Total Branch Automation (TBA) and Core Banking Solutions

(CBS). The implementation process of Back Office Application (BOA), has been

tabulated in the Table 5.7 was started in 1988 and completed in 2003, even though RBI

made it mandatory for the co-operative banks to adopt it between the periods of 1984-85.

126

As regards adoption of Total Branch Automation (TBA), it has been observed that 17 co-

operative banks have adopted the same. In the last decade of the twentieth century, 15 co-

operative banks (88.88%) have implemented TBA, whereas in the cases of the

implementation of CBS it has been observed that only 6 banks have implemented CBS

during the period 2003-2008. This confirms the hypothesis that the co-operative banks

are slow in adopting the process of computerisation.

5.6 Computerised Transactions:

A bank is generally defined as an institution, which accepts money as deposits from the

public with the purpose of lending to others as loans. It also performs transactions like

investment transactions which provide general account facility to the customer in the

form of saving account, current account, fixed deposit account, provides overdraft

facility, loan facility etc. Bank performs a trustworthy business for various purposes. The

bank also acts on behalf of the Government and accepts its tax and non-tax receipt,

payments like pension, PF etc and tax refunds. For performing all these transactions, a

bank either uses a manual system, partly computerised system or fully computerised

system. The status of computerisations of banking transactions of selected co-operative

banks is summarized in Table 5.8

Table 5.8 Classification of banks doing banking transactions

Manual

transactions

Partly

computerised

Fully

computerised

Sr.

No.

Banking Transactions

No. % No. % No. %

Total

1. Bank overdraft 03 16.67 02 11.11 13 72.22 18

2. Bills collection 03 16.67 03 16.67 12 66.66 18

3. Locker facility 02 11.11 07 38.89 09 50.00 18

4. DD/MT/MICR/Cheque ---- ---- 01 5.60 17 94.40 18

5. Deposits ---- ---- ---- ---- 18 100.00 18

6. Investment transactions 04 22.22 05 27.78 09 50.00 18

7. General account trans. ---- ---- ---- ---- 18 100.00 18

8. Government business 09 50.00 02 11.11 07 38.89 18

Source: Field work

127

02468

101214161820

Bank o

verdr

aft

Bills co

llecti

on

Lock

er facili

ty

DD/MT/M

ICR/C

heque

trans

actio

ns

Deposit

s

Investm

ent tr

ansacti

ons

Genera

l acc

ount

trans.

Govern

ment b

usine

ss / t

ransacti

ons

Manualtransactions

partlycomputerised

Fullycomputerised

Figure 5.4: Classification of banks doing banking transactions

The observations about banking transactions based on the above table are summarized as

follows:

All the 18 co-operative banks (100%) have provided fully computerised services to their

customers for depositing and general account transactions.

For DD/MT/MICR/Cheque transactions 94.40% of the banks have provided fully

computerised system whereas 5.60% of the banks have provided partly computerised

system.

For bank overdraft and bills collection transactions banks that have provided fully

computerised system are 72.22% and 66.66% respectively, whereas 16.67% banks are

providing these facilities in a manual form.

128

Only 50% of the banks have provided fully computerised system for locker and

investment transactions. About 50% of the banks are still doing government transaction

services in a fully manual form.

The establishment of a co-operative bank is mainly to accept the deposits to deal with

investment transactions and general accounts transactions. With the development in

banking system, these transactions are completed by the bank with the use of fully

computerised system.

It has been observed from Table 5.8 that the co-operative banks slowly but definitely are

changing from a manual method to the fully computerised system to give better services

to the customers.

5.7 Status of banks website

In the present competitive environment, the computerisation of banks is a basic need to

provide better services to their customers. The selected co-operative banks were asked

the status of their banks website. The responses are recorded in Table 5.9

Table 5.9 Status of website with selected co-operative banks

Sr. No. Website Status No. of banks Percentage

1. YES 08 44.40%

2. NO 10 55.60%

Source: Field work

A website is a basic requirement for all the financial institutions, but still out of the

selected 18 co-operative banks about 55.60% of the co-operative banks do not have their

own website, whereas only 44.40% of the co-operative banks have their own website.

129

It is therefore suggested that the website of a bank, is a best instrument for publicity

therefore co-operative banks should have their website which also helps them to do their

banking transactions smoothly.

5.8 Status of website hosted and updating authority of website

A banks website can be developed and updated by the bank itself. As designing a

Website requires expertise and is a costly affair, it’s better to hire the services of qualified

personnel. The details are given in the Table 5.10

Table 5.10 Position of website hosted and updating authority of website

Website hosted Updating website Sr.

No

Particulars

No. % No. %

1. In house 02 11.10 02 11.10%

2. Offsite 06 33.30 06 33.30%

3. No response 10 55.60 10 55.60%

Total 18 100 18 100%

Source: Field work

It has been observed that out of the 18 co-operative banks being studied about 8 banks

(44.40%) have their own website. Out of these 8 co-operative banks 33.30% of them

have given hosting and updating authority to an outside service providers, where as

11.10% of the co-operative banks are implementing and updating their website inhouse

by using their intellectual capital. But 10 co-operative banks (55.60%) do not have a

website.

This study leads us to conclude that all co-operative banks should provide website

services to their customers for basic information, as well as provide advanced

transactional facilities through it.

130

5.9 Problems faced by co-operative banks during back office application

At the time of implementing the back office application (BOA), banks use computers

only for storing their daily transactional information. In this the bank needs to do manual

data entry. At the same time, the bank needs to take daily/weekly/monthly back up of

saved data. Thus the back office application does not provide any type of service to the

bank’s customers. While implementing the back office application (BOA) in the banking

sector, banks faced various problems out of which a few important problems are listed

below in Table 5.11

Table 5.11 Problems of co-operative banks during back office computerisation

Banks faced

problems

Banks who

did not

Face problems

Total Sr.

No

Particulars

No. % No. % No. %

1. Duplication of work 14 77.80% 04 22.20% 18 100

2. No benefits to customers 11 61.10% 07 38.90% 18 100

3. Limited functions

covered such as SB/TD

interest calculations /

Payroll etc.

12 66.70% 06 33.30% 18 100

Source: Field work

131

Figure 5.5: Problems of co-operative banks during back office computerisation

It has been observed that a maximum number of 14 co-operative banks (77.80%) have

faced the problem of duplication of work, whereas 4 other co-operative banks (22.20%)

have no problem of this kind. There are 12 co-operative banks (66.70%) that are of the

opinion that limited functions such as saving account or term deposit interest

calculations, payroll application etc. can be carried out by this method. The remaining 6

co-operative banks (33.30%) disagree with this opinion. There are 11 co-operative banks

(61.10%) which suggest that this back office computerisation is not beneficial to the

customers.

5.10 Problems faced by co-operative banks while transferring from back office to

Total Branch Automation.

After back office application (BOA) was implemented, RBI has taken a new stand/step

about the implementation of total branch automation (TBA) in the banking sector. Due to

compulsion from RBI, the banks moved from back office application to total branch

automation. At the time of the implementation of total branch automation (TBA), co-

operative banks faced various problems as listed in Table 5.12

0

2

4

68

10 12 14 16

Duplication of work No benefits tocustomers

Limited functionscovered such asSB/TD interestcalculations /Payroll etc.

No. of Banks Facing problems

132

Table 5.12 Problems faced by the co-operative banks while transferring from back office

application to total branch automation

Sr.

No.

Particulars No. of

banks

Percentage

1. As human nature / tendency of staff 10 55.60%

2. Communist movement problem 03 16.70%

3. Unemployment problem 02 11.10%

4. Y2K technical problem 04 22.20%

5. Data back up (daily/weekly/ monthly) 16 88.90%

6. Antivirus updating problem 13 72.20%

7. Limited services provided by the bank 06 33.30%

8. Lack of computer knowledge to staff 05 27.80%

9. Data conversion 13 72.20%

Source: Field work

0

2

4

6

8

10

12

14

16

18

human n

ature / staff t

ende

ncy

Communist m

ovem

ent

Unemploy

ment

Y2K tech

nical

problem

Data back

up

Antiviru

s up

datin

g prob

lem

Limite

d servi

ces

Lack

of co

mputer k

nowled

ge to s

taff

Data conv

ersion

Banks faced problems Banks not faced problems

Figure 5.6: Problems faced by co-operative bank while transferring from back office

application to total branch automation.

133

It has been observed that a maximum no. of 16 co-operative banks (88.90%) have faced

the problem of data back up which is to be carried out either daily/weekly/monthly

according to the requirement of the bank. This is followed by 13 co-operative banks

(72.20%) that have faced the problem of antivirus updating to protect their systems

against virus. The other 13 co-operative banks (72.20%) have the problem of data

conversion. Further 10 co-operative banks (55.60%) stated that there is resistance from

the bank employees to accept the modernisation / computerised banking system. Then 5

co-operative banks (27.80%) face a genuine problem of their staff not having an in depth

knowledge of computers. The other 6 co-operative banks (33.30%) have stated that their

banks are providing limited services to their customers and hence Total Branch

Automation (TBA) is not fully beneficial to the customers. Other 4 co-operative banks

(22.20%) have Y2K technical problem. Further 3 co-operative banks (16.70%) have

pointed out that the bank union leaders opposed the banks from Total Branch

Automation. The last 2 banks (11.10%) have stated the fear of loss of employment, due to

the new banking system.

5.11 Problems faced by co-operative banks in implementing core banking solution

The Back office application and Total Branch Automation provides only certain

functions to the banks about their banking transactions. Nowadays, the focus of banks is

on core banking solution (CBS). Core banking solution provides, anywhere anytime

banking facilities, to the bank customers. Besides the customer, core banking solutions

are beneficial to the bank as well as bank employees. While implementing CBS, the

banks faced the following major problems as listed in the Table 5.13

134

Table 5.13 Problems faced by the co-operative banks while implementing core banking

solution

Sr.

No

Particulars Number

of Banks

Percentage

1 Huge investment in infrastructure 17 94.40%

2 More dependability on outside service providers 17 94.40%

3 Very complex software and hardware used in CBS 16 88.90%

4 Highly qualified professionals are to be employed

and hence salary burden increase.

12 66.66%

5 Difficulty to detect problem from number of stages 13 72.20%

6 Consumers are not ready to use CBS 11 61.10%

7 Any other (Health) 11 61.10%

Source: Field work

02468

1012141618

Hug

ein

vest

men

t

Dep

enda

bilit

yon

ser

vice

prov

ider

sC

ompl

ex S

/Wan

d H

/Wus

edD

iffic

ulty

inpr

oble

mde

tect

ion

Con

sum

erre

sist

ance

Any

oth

er(H

ealth

)

Bank faced problems

Banks not faced

Figure 5.7: Problems faced by the banks while implementing core banking solution

It has been observed that the maximum number of 17 co-operative banks (94.40%) have

either the problem of huge investment in computerised infrastructure or the problem of

135

more dependability on outside service providers. It is followed by 16 co-operative banks

(88.90%) who complain about software and hardware as very complex. 13 co-operative

banks (72.20%) indicate that the difficulty to detect the problem from number of stages.

The remaining 11 co-operative banks (61.10%) have stated unwillingness of the

customers to use core banking services. The other 11 co-operative banks (61.10%) have

put forth the health problem of the employees while implementing core banking solution,

where the employee has to work on computer for each and every transaction for more

than 8 hours a day which creates backache and eye trouble. It leads us to conclude that

although CBS is more beneficial to customers due to above mentioned problems co-

operative banks are lagging behind the implementation process of CBS.

Testing of Hypothesis 5

Hypothesis 5: A number of problems in application of computerisation are faced by

the co-operative banks.

The researcher has made an attempt to test this hypothesis with the help of data recorded

in Table Nos. 5.11, 5.12, and 5.13.

There are numerous problems faced by the co-operative banks while implementing

computerised system. To test this hypothesis the following table is created, which shows

the total number of problems faced by the banks during computerisation process.

Table 5.14 Total number of problems faced by the bank during computerisation process

Sr.

No.

Name of the bank Total number of problems

faced by bank during

computerisation process

1. The Cosmos Co-operative Bank Ltd., Pune 0

2. Janata Sahakari Bank Ltd. Pune 12

3. Saraswat Co-operative Bank Ltd. Pune 7

4. The Thane Janata Sahakari Bank Ltd. Pune 10

5. Mahesh Sahakari Bank Ltd. 8

136

6. Vishweshwar Co-operative Bank Ltd. Pune 10

7. Rupee Co-operative Bank Ltd. Pune 9

8. Suvarnayug Sahakari Bank Ltd. Pune 5

9. Pune Peoples Co-operative Bank Ltd. 5

10. Vidya Sahakari Bank Ltd. 6

11. Rajarshee Shahu Co-operative Bank Ltd. 4

12. Udyam Vikas Sahakari Bank Ltd., Pune 2

13. Karad Urban Co-operative Bank Ltd. Pune. 4

14. Shivajirao Bhosale Co-operative Bank Ltd. 7

15. Jeejamata Maheela Sahakari Bank Ltd. 8

16. Shree Laxmi Co-operative Bank Ltd. 5

17. Bhagini Nivedita Co-operative Bank. Ltd. 0

18. Pune Merchant's Co-operative Bank Ltd. Pune 7

Since the number of banks considered for the purpose of this study is only 18 which is

less than 30 therefore t-test for 1 mean is used to test the hypothesis.

H0: µ= 7 (Bank faced on an average 7 problems)

H1: µ <7 (Bank faced less than 7 problems)

(Note: 1/3 problems are considered to be a substantial number for testing this hypothesis)

Sample

size

Average Standard

error

t–

statistic

Respondents 18 06.05 3.31 1.28

As shown in the above table t = 1.216 which is < 1.74 hence we accept H0 i.e. bank faces

on an average 7 problems hence the hypothesis “A number of problems in application of

computerisation are faced by the co-operative banks” is accepted.

137

5.12 E-banking services provided by co-operative banks

The co-operative banks provide all the basic types of services to their customers. Similar

to commercial banks they have also implemented the step by step computerised solutions

for banking transactions, like Back Office Application, Total Branch Automation, and

Core Banking Solution. Now the commercial banks are providing advanced e-banking

services to their customers with the help of CBS. Few co-operative banks are also

providing these e-banking services to their customers, but few are far away from this.

Table 5.15 shows the status of e-banking services in co-operative banks.

Table 5.15 Status of e-banking services in co-operative banks

E-Banking Services Provided By Bank (Figures in bracket

indicates implementation year)

Sr.

No

Bank Name

ATM Tele-

Banking

PC

Banking

Internet

Banking

Mobile

Banking

Video

Conf.

1. The Cosmos Co-

operative Bank

Ltd., Pune

(2003)

68

NO NO NO (2007)

68

NO

2. Janata Sahalari

Bank Ltd. Pune

(1999)

7

(2007)

37

NO NO NO NO

3. Saraswat Co-

operative Bank

Ltd. Pune

(1995)

50

NO NO (2006)

50

(2007)

50

NO

4. The Thane Janata

Sahakari Bank

Ltd. Pune

(1998)

41

NO NO (2008)

41

(2008)

41

NO

5. Mahesh Sahakari

Bank Ltd.

0 NO NO NO NO NO

6. Vishweshwar

Co-operative

Bank

(2009)

2

NO NO NO NO NO

138

7. Rupee Co-

operative Bank

Ltd. Pune

(2000)

7

NO NO NO NO NO

8. Suvarnayug

Sahakari Bank

Ltd. Pune

NO NO NO NO NO NO

9. Pune Peoples

Co-operative

Bank Ltd.

NO NO NO NO NO NO

10. Vidya Sahakari

Bank Ltd.

NO NO NO NO NO NO

11. Rajarshee Shahu

Sahakari Bank

Ltd., Pune

NO NO NO NO NO NO

12. Udyam Vikas

Sahakari Bank

Ltd., Pune

NO NO NO NO NO NO

13. Karad Urban

Co-operative

Bank Ltd. Pune.

NO NO NO NO NO NO

14. Shivajirao

Bhosale Co-

operative Bank

Ltd.

NO NO NO NO NO NO

15. Jeejamata

Maheela

Sahakari Bank

Ltd.

NO NO NO NO NO NO

16. Shree Laxmi Co-

operative Bank

Ltd.

NO NO NO NO NO NO

139

17. Pune Merchant's

Co-operative b

ank Ltd. Pune

NO NO NO NO NO NO

18. Bhagini Nivedita

Co-operative

Bank

NO NO NO NO NO NO

Source: Field work

It has been observed that hardly 6 co-operative banks (33.33%) have provided ATM

facility to their customers. Only one co-operative bank (05.55%) has provided telephone

banking service to their customers. The other 2 co-operative banks (11.11%) have

provided internet banking facility. There are 3 co-operative banks (16.66%) which

provide mobile banking services. It leads us to conclude, that the co-operative banks are

lagging behind in offering e-banking services to their customers.

5.13 Software packages used by the banks for their banking transactions

For providing computerised services to the customers banks use different types of

software according to the requirement of the bank and the cost of the software. Table

5.16 shows software packages that have been used by the banks for computerised

services.

Table 5.16 Provision of software packages for banking transactions / services

Software Name for following type of services Sr.

No

Name of the Bank

TBA CBS ATM Internet

Banking

Mobile

banking

1. The Cosmos Co-

operative Bank Ltd.,

Pune

--- Finacle Electra ---- Electra

2. Janata Sahakari Bank

Ltd. Pune

Bankplus

Plutus

OMNI

SETU

OMNI

SETU

---- ----

140

3. Saraswat Co-

operative Bank Ltd.

Pune

---- OMNI OMNI OMNI OMNI

4. The Thane Janata

Sahakari Bank ltd.

Pune

---- OMNI OMNI OMNI OMNI

5. Mahesh Sahakari

Bank Ltd.

---- OMNI ---- ---- ----

6. Vishweshwar Co-

operative Bank Ltd.

Pune

OMNI OMNI ---- ---- ----

7. Rupee Co-operative

Bank Ltd. Pune

T.B.A. ---- HMA/

Startware

---- ----

8. Suvarnayug Sahakari

Bank Ltd. Pune

---- ---- ---- ---- ----

9. Pune Peoples Co-

operative Bank Ltd.

Bank Easy ---- ---- ---- ----

10. Vidya Sahakari Bank

Ltd.

Bank Easy ---- ---- ---- ----

11. Rajarshee Shahu

Sahakari Bank Ltd.,

Pune

Bank Plus ---- ---- ---- ----

12. Udyam Vikas

Sahakari Bank Ltd.,

Pune

Shree

Bhushan

---- ---- ---- ----

13. Karad Urban Co-

operative Bank Ltd.

Pune.

Compu

Soft

---- ---- ---- ----

14. Shivajirao Bhosale

Co-operative Bank

Banker

2001

---- ---- ---- ----

141

15. Jeejamata Maheela

Sahakari Bank Ltd.

Shree

Bhushan

---- ---- ---- ----

16. Shree Laxmi Co-

operative Bank Ltd.

Compu

Soft

---- ---- ---- ----

17. Bhagini Nivedita Co-

operative Bank. Ltd.

---- ---- ---- ---- ----

18. Pune Merchant's Co-

operative bank Ltd.

Pune

Artha-

lekha

---- ---- ---- ----

Source: Field work

It has been observed that different banks used different types of software for the banking

transactions according to the requirement of the bank and cost of the software. Five co-

operative banks are using OMNI SETU software for providing CBS services to their

customers. Whereas Saraswat Co-operative bank Ltd. Pune uses Finacle software for the

same types of CBS services. Various software used by the banks for Total Branch

Automation are namely: Bankplus, OMNI, HMA Startware, Shree Bhushan, Plutus,

Banker123, BankEasy, Arthlekha etc.

This leads us to conclude that out of the 18 co-operative banks 11 co-operative banks are

still working on Total Branch Automation. The other 6 co-operative banks are using

OMNI and Finacle software for CBS services. OMNI software has been used by five

banks for the implementation of CBS, but due to high cost of this software many co-

operative banks have stayed away from implementing the CBS.

142

Testing of Hypothesis 4:

Hypothesis 4: As some banking software is costly some co-operative bank has not

adopted.

The researcher has made an attempt to test this hypothesis with the help of data recorded

in Table 5.15 and Table 5.16.

The researcher has enquired with the bank officers about the cost of computerisation.

They informed that the cost of OMNI software, which is used for core banking solutions,

is above Rs. 15 Crore and hence it is beyond the financial capacity of many of these co-

operative banks. The software namely FINACLE, Electra star switch, HMA starware,

Electra ATM are also used for CBS transaction but the cost of these software is also

above Rs 10 Crore, which is not affordable to small size or middle size co-operative

banks. Therefore the hypothesis “As some banking software is costly some co-operative

bank has not adopted” is tested affirmatively.

Views/Responses of the IT heads of the co-operative banks regarding bank

computerisation:

The researcher has also interviewed the IT heads of the selected co-operative banks. The

opinions of IT heads regarding bank computerisation are listed in Table No 5.17

Table 5.17: Responses of the IT heads of the co-operative banks

Opinion of number of

Banks

Sr.

No.

Questions

AGREE DISAGREE

1. Lack of consciousness of the co-operative banks

about extending computerised services

14 04

2. Lack of awareness amongst the customers about

their service rights

16 02

143

3. Lack of necessary computerised system 15 03

4. Lack of proper communication system 14 04

5. Lack of funds for computerised system 16 02

6. Lack of technical knowledge and skills of the bank

employees

13 05

7. Lack of IT literacy of the customers 16 02

8. Resistance for computerisation from employee and

management side

13 05

9. Delay in framing rules and regulations for

electronic services

14 04

10. Anywhere and anytime banking provides MIS

reports quickly and effectively.

18 00

11. Cost of maintenance of the offices can be reduced

in anywhere anytime banking environment

14 04

From the above table it has been observed that above 70% co-operative bank stated that

the present co-operative banking scenario is far from anywhere and anytime banking due

to above mentioned reasons. This is mainly because of the system reengineering for

anywhere and anytime banking demands use of high level of technological tools on one

hand and strengthening the infrastructural facilities like communication system,

networking etc. on the other hand. In addition to enhancement of the knowledge, skills of

the bank employees play an important role to achieve this end. This apart, the level of

awareness amongst the customers, consciousness of the banks for extending such

facilities to the customers is very low due to that the co-operative banking sector has not

yet implemented anywhere anytime banking system efficiently.

144

PART – II: Views of the co-operative banks employees regarding the bank’s

computerisation

The researcher has selected 100 employees of the selected 18 co-operative banks for the

purpose of the study. The researcher has collected the information from co-operative

bank employees by serving them a structured questionnaire and has interviewed them

personally for additional information regarding their opinion about bank computerisation

and their problems. This information highlights the views of the banks employees. These

respondents are responsible for implementation of the computerised systems in banks.

For the purpose of analysis the researcher has used the term “Respondents” which

denotes the employees of these banks. Their views are to ascertain on important issues

such as introduction of computerisation in banking system, requirement of training for

handling computerised transactions and the problems of employees due to

computerisation. These views are also essential for suggesting the measures for better

implementation of the computerisation in banking system.

5.14 Personal Information

The personal details of 100 employees of the co-operative banks are given below. The

information covers the gender wise classification, age wise classification, employee’s

qualification and their service experience.

(a) Gender

The gender wise classification of 100 employees is shown in Table 5.18

Table 5.18 Gender wise classification of the selected banks employees

Sr. No Gender No. of employees Percentage

1. Male 53 53.00%

2. Female 47 47.00%

Total 100 100.00%

Source: Field work

145

It has been observed that there is maximum number of 53 male employees (53.00%) as

against 47 female employees (47.00%). There is almost an equal proportion of male:

Female ratio of the bank employees, from the selected 18 co-operative banks.

(b) Age:

Table 5.19 shows the age wise classification of the selected 100 employees

Table 5.19 Age wise classification of the selected bank’s employees

Sr. No. Particulars

(Age group)

Total no. of

employees

Percentage

1. 18 – 30 18 18.00%

2. 31 – 45 55 55.00%

3. 46 – 58 27 27.00%

Total 100 100%

Source: Field work

It has been observed that the maximum numbers of 55 bank employees (55.00%) are in

the age group of 31 – 45. Further, 27 bank employees (27.00%) are in the age group of 46

– 58, and the other 18 bank employees (18.00%) are below 30. Hence, it has been

observed that most of these 18 banks have the staff with sufficient banking experience.

(c) Qualification

Table 5.20 indicates qualification wise classification of 100 employees of the selected co-

operative banks.

Table 5.20 Qualification wise classification of bank employees

Sr. No Educational

qualification

No. of bank

employees

Percentage

1. Below SSC 01 01.00%

2. SSC 06 06.00%

3. Graduate 65 65.00%

4. Post Graduate 28 28.00%

Total 100 100.00%

Source: Field work

146

It has been observed that the maximum numbers of 65 bank employees (65.00%) are

graduates. This is the minimum qualification for a clerical job or supervisory job in a

bank. However, 28 bank employees (28.00%) are post graduate, whereas only 6

employees (06.00%) have passed the SSC and only 1 employee (01.00%) is below SSC

level.

(d) Experience

Table 5.21 indicates experience wise classification of the bank employees of the selected

co-operative banks.

Table 5.21 Experience of selected co-operative banks employees

Sr. No. Years of experience No. of employees Percentage

1. Up to 5 years 25 25.00%

2. 6 to 10 years 26 26.00%

3 11 to 15 years 13 13.00%

4 16 to 20 years 11 11.00%

5 21 to 25 years 14 14.00%

6 26 to 30 years 06 06.00%

7 31 to 35 years 05 05.00%

Total 100 100.00%

Source: Field work

It has been observed that the maximum number of 26 co-operative bank employees

(26.00%) have experience in the range of 6 to 10 years. It is followed by 25 co-operative

bank employees (25.00%) who have up to 5 years experience. Further, 14 co-operative

bank employees (14.00%) have 21 to 25 years of experience. Remaining 13 bank

employees (13.00%) and 11 co-operative bank employees (11.00%) have experience of

11 to 15 years and 16 to 20 years respectively. Further, 6 co-operative banks employees

(06.00%) have maximum number of experience in the range of 26 to 30 and last but not

the least 5 co-operative bank employees (05.00%) have the maximum years of experience

147

in the range of 31 to 35 years. It leads us to conclude that on an average the banking staff

is well experienced.

5.15 Bank computerisation

The process of automation in banks has started at the end of the 19th century. Before

computerisation all the banking transactions were done manually. When co-operative

banks decided to shift from manual transaction processing system to computerised

transaction processing system, all the employees reacted in a different manner. Their

reactions are noted in Table 5.22.

Table 5.22 Age wise first reactions of co-operative banks employees about bank

computerisation

Number of co-operative bank employees

According to their age

Sr.

No

Particulars

18-30 31-45 Above

45

Total

Percentage

1. Positive 16 54 15 85 85.00%

2. Negative 02 00 11 13 13.00%

3. Can’t say 00 01 01 02 02.00%

Total 18 55 27 100 100.00%

Source: Field work


(85.00%) have a positive response to the decision of the bank to accept computerised

banking system. Out of 85 co-operative bank employees , 16 of them (18.82%) are in the

age group of 18-30, 54 are in the age group of 31-45 and 15 (17.64%) are in the age

group of above 45.

There are 13 co-operative bank employees (13.00%) who resisted the action of

computerisation in banks. Out of them 2 (15.38%) are in the age group of 18-30 and other

11 (84.61%) are in the age group above 45 years. The other 2 co-operative bank

148

employees (02.00%) did not respond to the question as they might not be aware of the

change. Out of them one is in the age group of 31-45 and other is in the age group of

above 45. It leads us to conclude that the maximum number of employees who are in the

age group of 31 – 45 have positive reaction regarding bank computerisation.

(a) Rigorous training is required

The purpose of the banks to change from traditional method to modern method of

computerisation, is to give better services to their customers. As the co-operative bank

employees do not know anything about the new method, a rigorous training programme

for them is required. The reactions of the co-operative bank employees to training are

recorded in Table 5.23.

Table 5.23 Reactions of the co-operative banks employees about rigorous training

Number of bank employees Sr.

No

Particulars

18-30 31-45 Above 45 Total

Percentage

1. No response 01 02 01 04 04.00%

2. Strongly agree 06 22 17 45 45.00%

3. Agree 09 30 08 47 47.00%

4. Strongly disagree ---- ---- ---- ---- ----

5. Disagree 02 01 01 04 04.00%

Total 18 55 27 100 100.00%

Source: Field work

It has been observed that the maximum number of 45 bank employees (45.00%) are

strongly in favour of the bank to give them rigorous training. Out of which about 6

(13.33%) bank employees are in the age group of 18-30, 22 employees (48.88%) are in

the age group of 31-45 and remaining 17 employees (37.77%) are in the age group of

above 45. The other 47 bank employees (47.00%) agree with the bank’s action. Out of

these 47 bank employees, 9 employees (19.14%) are in the age group of 18-30, other 30

employees (63.82%) are in the age group of 31-45 and remaining 08 employees (17.02%)

are in the age group of above 45. But 4 bank employees (04.00%) disagree with such

149

rigorous training and out of which 2 employees are in the age group of 18-30, 1 employee

is in the age group of 31-45 and remaining 1 employee is in the age group of above 45.

The rest 4 (04.00%) employees do not respond to it.

(b) Sufficiency of training

The employees of the co-operative banks were asked whether they are satisfied with the

training provided by the bank to handle computerised transactions. Their responses in this

regard are recorded in Table 5.24. The response ‘Yes’ indicates that the training

provided to the co-operative bank employee is enough to handle the computerised

banking transactions.

Table 5.24 Responses of the co-operative banks employees regarding training provided

by the banks


No

Response

of bank

employees

18-30 31-45 Above 45 Total

Percentage

1. Yes 14 41 13 68 68.00%

2. No 2 13 13 28 28.00%

3. Can’t Say 2 1 1 04 04.00%

Total 18 55 27 100 100.00%

Source: Field work

150

0

5

10

15

20

25

30

35

40

45

Age Group 18-30 Age Group 31-45 Age group Above45

1 Yes2 No3 Can’t Say

Figure 5.8: Responses of the co-operative bank employees regarding training provided by the banks

It has been observed that the maximum numbers of 68 co-operative bank employees

(68.00%) are satisfied with the training provided by the bank. Out of which the maximum

number of 41 employees are in the age group of 31-45, 13 employees are in the age group

of above 45 and remaining 14 employees are in the age group of 18-30. They have

acquired computer literacy to handle computerised transactions in the bank. The other 28

co-operative bank employees (28.00%) are not satisfied with the training provided to

them to handle computerised transaction. Out of these 28 co-operative banks employees,

13 are in the age group of 31-45, 13 employees are in the age group of above 45 and

remaining 2 employees are in the age group of 18-20. Other 4 co-operative bank

employees (04.00%) did not respond at all.

5.16 Problems of bank employees

The bank employees are new to the modern computerised system of banks. They have

faced number of problems during modernisation. The researcher inquired about their

problems due to computerisation of the bank. Their responses are recorded in Table 5.25.

151

Table 5.25 Responses of the co-operative banks employees regarding their problems


No

Particulars

YES NO Total

1. Lack of thorough knowledge of technology

(%)

84

(84.00%)

16

(16.00%)

100

(100.00%)

2. Lack of confidence in handling automated

transactions (%)

40

(40.00%)

60

(60.00%)

100

(100.00%)

3. No direct interactions with the customer

(%)

08

(08.00%)

92

(92.00%)

100

(100.00%)

4. Fear about job security

(%)

15

(15.00%)

85

(85.00%)

100

(100.00%)

Source: Field work

Figure 5.9: Responses of the co-operative bank employees regarding their problems


(84.00%) have expressed their lack of thorough knowledge of technology is a problem in

implementing and handling the computerised system in the bank. The other 16 co-

operative bank employees (16.00%) have not faced this particular problem. This is

0102030405060708090

100

Lack ofthorough

knowledge of technology

Lack ofconfidence in

handlingautomated

transactions

No directinteractions

with thecustomer

Fear aboutjob security

AgreeDisagree

152

followed by 40 co-operative banks employees (40.00%) who have no confidence in

implementing the computerised system. And the other 60 co-operative bank employees

(60.00%) are confident to implement the computerised system. Further there are 15 co-

operative bank employees (15.00%) who are under pressure to lose their job because of

computerisation. But the remaining 8 employees (08.00%) are worried about losing their

contacts with the customers by implementing the computerised system. It leads us to

conclude that while implementing and handling computerised system the major problem

faced by the bank employees is the lack of thorough knowledge of technology.

PART – III: Views of the co-operative banks customers regarding computerised

banking services

The co-operative banks have adopted the computerised system as it is an economical and

a labour saving device, but it is a very capital intensive technique. A huge investment is

required to adopt this method.

The researcher has classified the customers of the co-operative banks into 5 categories.

Considering the 18 co-operative banks researcher has selected the sample of 40

respondents from each category on the basis of purposive sampling method. Categories

of selected sample are given in Table 5.26

Table 5.26 Categories of the selected co-operative banks customers:

Sr. No Particulars Selected

respondents

percentage

1. Businessman 40 20.00%

2. Employed customer 40 20.00%

3. Student 40 20.00%

4. Female 40 20.00%

5. Senior citizen 40 20.00%

Total 200 100.00%

Source: Field work

153

5.17 Personal data

Personal details of the selected 200 respondents are discussed below. The classification

of the 200 co-operative bank’s customers has been done gender wise, age wise,

qualification wise and their occupation wise.

(a) Gender:

The gender wise classification of 200 customers of the co-operative banks is shown in the

table 5.27

Table 5.27 Gender wise classification of banks customers

Sr. No Gender Number of customers Percentage

1. Male 111 55.50%

2. Female 89 44.50%

Total 200 100.00%

Source: Field work

It has been observed that there are a maximum number of 111 male customers (55.50%)

as against 89 female customers (44.50.00%). There is almost an equal proportion of male:

Female ratio of the bank customers.

(a) Age:

The age wise classification of 200 co-operative bank’s customers is given in Table 5.28

Table 5.28 Age wise classification of the co-operative banks customers

Sr. No. Age group Number of customers Percentage

1. Below 25 63 31.50%

2. 26-50 86 43.00%

3. Above 50 51 25.50%

Total 200 100.00%

Source: Field work

154

It has been observed that a maximum number of 86 bank customers (43.00%) are in the

age group of 26 – 50. Further, 63 customers (31.50%) are in the age group of below 25,

and other 51 customers (25.50%) are above 50.

(b) Qualification:

Table 5.29 indicates qualification wise classification of 100 bank employees of selected

co-operative banks.

Table 5.29 Qualification wise classification of banks customers

Sr.

No

Educational

qualification

Number of bank

customers

Percentage

1. Post Graduate 82 41.00%

2. Graduate 104 52.00%

3. SSC 14 07.00%

Total 200 100.00%

Source: Field work

It is observed that a maximum number of 104 customers (52.00%) are graduates.

However, 82 customers (41.00%) are post graduate. There are only 14 customers

(07.00%) who have passed SSC. This leads us to conclude that the maximum numbers of

customers are well qualified.

(c) Banking transactions

The researcher has made an attempt to analysis the transactions of selected co-operative

banks customers. These transactions are either traditional transactions or computerised

transactions. The details of each type of transactions are given as below.

I. Traditional Transactions

The respondents were asked to specify the type of transaction they perform in a

traditional way. Their responses are recorded in Table 5.30

155

Table 5.30 The transaction wise classification of customers visiting the bank

Sr. No Type of transaction Number of customers Percentage

1. Withdrawal 117 58.50%

2. Deposit 117 58.50%

3. Balance enquiry 82 41.00%

4. Passbook updating 162 81.00%

5. Cheques 150 75.00%

6. Demand drafts 145 72.50%

7. Investment 127 63.50%

8. Bill payment 85 42.50%

9. Money transfer 80 40.00%

10. Repayment of loan 59 28.50%

11. None of these 22 11.00%

Source: Field work

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Withdra

wal

Depos

it

Balanc

e enq

uiry

Passb

ook

upda

ting

Chequ

es

Deman

d draf

ts

Inves

tmen

t

Bill pay

ment

Money

trans

fer

Repay

ment o

f loan

None o

f thes

e

No. of customers using traditional way of banking

Figure 5.10: The transaction wise classification of customers visiting the bank

156

It has been observed that a maximum number of 162 customers (81.00%) visit their

banks for updating their passbook. This is followed by 150 customers (75.00%) who visit

their bank for the cheque transaction. The other 145 customers (72.50%) do so for the

demand draft transactions. A total of 127 customers (63.50%) visit their banks for

investment transactions. For both withdrawal and depositing transactions, a maximum

number of 117 customers (58.50%) drop in at the bank. For bill payment 85 customers

(42.50%) visit their banks followed by 82 customers (41.00%) who do so for balance

enquiry. For money transfer transaction 80 customers (40.00%) and for repayment of

loan transaction 59 customers (28.50%) visit the bank. The last but not the least 22

customers (11.00%) responded that they never visit their banks to perform the

transactions manually.

II. Computerised Transaction

Table 5.31 recorded the details of the customers’ transactions for which they use

computerised services.

Table 5.31 The transaction wise classification of customers using computerised services

Sr. No Type of transaction Number of

customers

Percentage


2. Deposit 72 36.00%



5. Cheques 11 05.50%

6. Demand draft 03 01.50%


8. Bill payment 56 28.00 %




Source: Field work

157

Number of customers using computerised services

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Withdra

wal

Deposit

Balanc

e enq

uiry

Passb

ook

upda

ting

Cheque

s

Deman

d draft

Investm

ent

Bill paym

ent

Money

trans

fer

Repaym

ent o

f loan

None of

thes

e

Figure 5.11: The transaction wise classification of customers using computerised services

It has been observed that a maximum number of 128 customers (64.00%) do banking

transactions using computerised transaction system. This is followed by 103 customers

(51.50%) who use this facility for balance enquiry. Further 72 customers (36.00%) have

utilized this facility to deposit in their account. The other 56 persons (28.00%) use it for

bill payment. 51 customers (25.50%) use it for money transfer. 23 customers (12.50%)

have used this facility for repayment of loan. However 61 customers (30.50%) do not use

this service for any transactions.

It leads us to conclude that even though bank has introduced computerised system, the

customers are still accustomed to the traditional method of using the bank services. They

have a common purpose of depositing the amount or withdrawing it either by cash or

cheques and would always visit the bank to enquire about their balance. There is still

scope for each customer to use the computerised transaction system for money transfer,

repayment of loan, demand draft and investment.

158

5.18 E-banking services used by customers

Table 5.32 recorded the details about e-banking services used by customers for banking

transactions.

Table 5.32 The transaction wise classification of e-banking services used by customers

Sr. No Type of e-banking services Number of

customers

Percentage

1. ATM 137 68.50%

2. Internet banking 53 26.50%

3. Mobile banking 32 16.00%

4. Telephone banking 10 05.00%

5. PC banking 00 00.00%


Source: Field work

E-banking services used by the customers

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

ATM Internetbanking

Mobilebanking

Telephonebanking

PCbanking

None ofthese

Figure 5.12: E-banking services used by the customers

159

It has been observed that a maximum number of 137 customers (68.50%) are using e-

banking services and particularly ATM service for their day to day banking transactions.

This is followed by 53 customers (26.50%) who used internet banking under e-banking

services. It is important that the customer should be computer literate for using such e-

banking services. There are 32 customers (16.00%) who are accustomed to mobile

banking. Mobile banking is a service in which customer can do their banking transactions

concerning their account through their cell phones.

The analysis of data shows that a number of customers using e-banking services are very

less therefore it is suggested that the bank should take the responsibility to make

customers aware of e-banking services. These customers can be approached by bank, by

organising their meetings or distributing the pamphlets giving full information about e-

banking services. Globalisation has opened the window to other nations, especially for

the NRI customers those who are in search of modernised banking services for doing

their banking transactions. It will make the co-operative banks competent enough to

compete with other commercial / nationalised / foreign exchange banks, which have

already introduced/implemented the e-banking services.

5.19 E-banking services used by customers and its convenience

Table 5.33 represents the details about convenience to customers in using e-banking

services for banking transactions.

Table 5.33 The transaction wise convenience to customers with e-banking services

Sr. No Type of e-banking services Number of

customers

Percentage

1. ATM 120 60.00%




5. PC banking 00 00.00%


Source: Field work

160

Transaction wise convenience of customers with e-banking services

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

ATM Internetbanking

Mobilebanking

Telephonebanking

None of these

Figure 5.13: The transaction wise convenience of customers with e-banking services

It has been observed that 137 customers are using ATM facility, out of which 120

customers are comfortable with the ATM services. This means that 87.59% of the

customers are comfortable with the ATM facility. Out of 53 customers 47 customers

(88.67%) responded that they are comfortable with internet banking transactions and 25

out of 32 customers (78.12%) have expressed that they can deal with mobile banking

easily.

It leads us to conclude that when a comparison is made between the customers using e-

banking facility and their comfort in using it, indicates that almost 80% are satisfied with

the use of e-banking services. The banks should encourage the customers by educating

them through lectures and distributing pamphlets in using e-banking services.

161

5.20 Reactions of co-operative banks customers about computerised banking

transaction

Table 5.34 represents the customer’s reactions about computerisation in the banking

sector and computerised banking transaction. This table covers the transaction time,

service efficiency, and security about the banking transactions.

Table 5.34 Customers reactions about bank computerisation

Reduce waiting

time for any

transaction

Computerised

transactions are

secured

transactions

Computerised

transactions

increase bank’s

efficiency

Sr.

No

Particular

Reactions / Age

Number % Number % Number %

1. Below 25

Total

Strongly agree

Agree

No Response

Disagree

63

23

26

11

03

31.50%

11.50%

13.00%

05.50%

01.50%

63

04

35

18

06

31.50%

02.00%

17.50%

09.00%

03.00%

63

17

42

04

--

31.50%

08.50%

21.00%

02.00%

--

2. 26 – 50 years

Total

Strongly agree

Agree

No Response

Disagree

86

35

39

10

02

43.00%

17.50%

19.50%

05.00%

01.00%

86

07

52

09

18

43.00%

03.50%

26.00%

04.50%

09.00%

86

34

48

04

--

43.00%

17.00%

24.00%

02.00%

--

3. Above 50

Total

Strongly agree

Agree

No Response

Disagree

51

13

27

10

01

25.50%

06.50%

13.50%

05.00%

00.50%

51

01

29

17

04

25.50%

00.50

14.50%

08.50%

02.00%

51

25

20

06

--

25.50%

12.50%

10.00%

03.00%

--

162

4. Total

Strongly agree

Agree

No Response

Disagree

200

71

92

31

06

100.00%

35.50%

46.00%

15.50%

03.00%

200

12

116

44

28

100.00%

06.00%

58.00%

22.00%

14.00%

200

76

107

17

--

100.00%

38.00%

53.50%

08.50%

--

Source: Field work

It has been observed that there are 86 customers (43.00%) between the age group 26 – 50

out of which 74 customers (37.00%) have suggested that computerised services reduces

the waiting time for any banking transaction. Out of 86 customers 59 customers (29.50%)

of the same age group feel that computerised transactions are secured transactions.

Moreover 82 customers (41.00%) have suggested that the computerised transactions

increased the service efficiency of banking transactions.

This is followed by the age group below 25 (youngsters) who reacted about bank

computerisation. There are total number of 63 (32.50%) customers out of which 49

customers (24.50%) suggested that the bank computerisation has reduced waiting time

for any transactions as well as computerised transactions are secured transactions.

In case of senior citizen, age group above 50, there are 51 (25.50%) customers who

commented that bank computerisation has 3 advantages such as:

1. It reduces waiting time for banking transactions.

2. Computerised transactions are secure transactions.

3. Computerised transactions have increased the bank’s efficiency.

163


Hypothesis 1: Computerisation improves the quality of service in the banking

sector.

For testing this hypothesis, the quality of service is considered in 3 aspects namely:

a) Waiting time

b) Security

c) Service efficiency.

For testing this hypothesis, the responses of the customers on quality of service are noted

in following table.

Table 5.35 Responses of the customers on service efficiency

Sr.

No

ASPECTS Agree Disagree Total

1. Reduction in waiting

time

163 (96.44%) 06

(03.55%)

169

(100.00%)

2. Computerised

transactions are secured

transactions

128

(82.05 %)

28

(17.95%)

156

(100.00%)

3. Computerised

transactions increased

service efficiency

186

(100 %)

00

(00.00%)

186

(100.00%)

Testing of hypothesis 1 for quality aspect:

Aspect 1: ‘Reduction in waiting time’

ASPECT Agree Disagree Total

Reduction in waiting

time

163

(96.44%)

06

(03.55%)

169

(100.00%)

164

H0: 95 % people feel that there is reduction in waiting time due to computerisation.

H1: < 95 % people feel that there is reduction in waiting time due to computerisation.

So H0 and H1 is set as follows

H0: p = 95%

H1: p < 95 %

Level of significance = 5%

As the sample sizes is greater than 30, it is large sample size, hence it follows normal

probability distribution. So Z-test is used and as one proportion is involved, it is one

proportion Z- test.

Sample

size Proportion

Standard

error

z -

statistic

Respondents 169 96.44 1.676 0.859

Z value for one tail test for 5% confidence is 1.64. Therefore decision rule is that if the

calculated value of z is greater than 1.64, then reject the null hypothesis and if z less than

1.64, do not reject the null hypothesis.

As shown in the above table Z = 0.859 which is less than 1.64 hence we accept H0

i.e.95% people feel that there is reduction in waiting time due to computerisation.

Aspect 2: ‘Security of computerised transactions’

ASPECT Agree Disagree Total

Computerised

transactions are secured

transactions

128

(82.05%)

28

(17.95%)

156

(100.00%)

165

H0: 85% people feel that computerised transactions are secured transactions.

H1: < 85 % people feel that computerised transactions are not secured transactions.


H0: p = 85%

H1: p < 85 %

Sample

size

Proportion Standard

error

z -

statistic

Respondents 156 82.05 2.858 1.032

As shown in the above table Z = 1.032 which is less than 1.64 hence we accept H0

i.e.85% people feel that computerised transactions are secured transactions.

Aspect 2: ‘Service efficiency of computerised transactions’

As far as third aspect service efficiency of bank is concerned all 100% respondents agree

that computerised transactions increase service efficiency. Thus it can be concluded that

for all the three aspects of the quality of service more than 85 respondents are agree with

the fact that computerisation increases quality of service. Hence this hypothesis

“Computerisation improves the quality of service in the banking sector” is accepted.

5.21 Problems of e-banking services

The age wise responses of customers to the problems in the e-banking services are shown

in the Table 5.36.

166

Table 5.36 Opinions of customers about the problems of e-banking services

Agree Disagree Total Sr.

No.

Particulars

Age group wise No. % No. % No. %

1. Below 25 Years

1. Limited Scope

2. No direct communication

3. Sometimes problematic

4. Fear about security

5. Lack of knowledge

21

26

30

32

22

10.50%

13.00%

15.00%

16.00%

11.00%

42

37

33

31

41

21.00%

18.50%

16.50%

15.50%

20.50%

63

63

63

63

63

31.50%

31.50%

31.50%

31.50%

31.50%

2. 26 – 50 Years

1. Limited Scope





41

45

61

61

16

20.50%

22.50%

30.50%

30.50%

08.00%

45

41

25

25

70

22.50%

20.50%

12.50%

12.50%

35.00%

86

86

86

86

86

43.00%

43.00%

43.00%

43.00%

43.00%

3. Above 50 Years

1. Limited Scope





22

19

31

34

39

11.00%

09.50%

15.50%

17.00%

19.50%

29

32

20

17

12

14.50%

16.00%

10.00%

08.50%

06.00%

51

51

51

51

51

25.50%

25.50%

25.50%

25.50%

25.50%

Source: Field work

Following observations have been noted from the Table 5.36.

1. Age group below 25:

There are 63 customers (31.50%) who are in the age group below 25 and agree to the fact

that there are problems in the e-banking services. Out of them, 32 customers (16.00%)

are worried about the security of the transactions. Out of 63 customers, 30 customers

(15.00%) agree that computerised transactions could be sometimes problematic. 26

customers (13.00%) agree that computerisation does not establish a direct communication

167

link with the bank. But 25 customers of this age group (below 25) do not agree with their

opinion. From the same age group, 22 customers (11.00%) agree that due to lack of

knowledge they fear to handle computerised transactions, whereas the remaining 41

customers (40.20%) do not face this problem.

2.Age group 26 – 50:

There are 86 customers (43.00%) in this age group of 26 – 50, out of which 61 customers

(30.50%) agree that there are problems with e-banking services. This is followed by 61

customers (30.50%) who fear the security of the transaction, but 25 customers (12.50%)

do not agree with them Further 45 customers (22.50%) suggested that because of

computerisation there was no direct communication with the bank, but other 41

customers (20.50%) do not agree with this statement.

There are 41 customers (20.50%) who stated that banking transactions based on

computerisation may give limited scope for personal advice, but 45 customers (22.50%)

do not feel the same.

3. Age group above 50:

There are 51 customers (25.50%) of the age group above 50, who agree with the

problems suggested so far. In this age group of above 50 years, there are 39 customers

(19.50%) who suggested that lack of knowledge about the computerised transactions is

the real problem. As against this only 12 customers (6.00%) do not agree with this

statement. This is followed by a group of 34 customers (17.00%) of this age group, who

have feared the security of the banking transaction, whereas 17 customers (08.50%) do

not feel like this. It is followed by 31 customers (15.50%) who stated that the

computerised transactions could be sometimes problematic, but 20 customers (10.00%)

have disagreed with the same. The other 22 customers (11.00%) have suggested that

because of computerisation there was a limited scope for personal advice on banking

transactions, but 29 customers (14.50%) of this age group have not agreed with it.

This leads us to conclude that customers in the middle age group 26 – 50 were strongly in

favour of the opinion, that e-banking services do create problems. But customers below

168

age 25 years who were significant in numbers, disagreed with this statement. Senior

citizens had not accepted any kind of change in the current situation, but youngsters were

always willing for a change for the better.


Hypothesis 2: There are more problems faced by senior citizens than that of

youngsters, while availing e-banking services.

Another hypothesis of this study is that “There are more problems faced by older people

(above 26 Yrs.) than those by youngsters (below 25 Yrs.) while availing the e-banking

services”. The data collected in the field work for testing this hypothesis is recorded in

Table 5.36. The customers were asked to give their opinion about the problems of e-

banking services.

For testing this hypothesis the following two aspects have been considered.

Aspect one: Fear about transactional security and

Aspect two: Lack of knowledge about computerised transactions.

Aspect one: Fear about transaction security

This hypothesis is tested by using two proportion Z test as two different groups are

involved. Details of proportion of people facing problems are given in above table.

H0: There is no difference between young people and senior citizens with respect to

problems of security.

H1: Young people face fewer problems than that of senior citizens with respect to

problems of security.


H0: P1 = P2

H1: P1< P2

169

Respondents Sample

size

Proportion of those who are

facing problems

Standard

error

z -

statistic

< 50 149 62.42%

> 50 51 66.67% 7.80 0.5448

As shown in the above table Z = 0.5448 which is less than 1.64 hence we accept H0 i.e.

there is no difference between young people and senior citizen regarding the problem of

security. Therefore, this hypothesis is rejected as considering the aspect of security.

Aspect two: Lack of knowledge

This hypothesis is tested by using two proportion Z test as two different groups are

involved. Details of proportion of respondents facing problems are given in above table.

H0: There is no difference between young people and senior citizens with respect to lack

of knowledge.

H1: Young people face fewer problems than that of senior citizens with respect to lack of

knowledge.


H0: P1 = P2

H1: P1< P2

Respondents Sample

size

Proportion of those who are

facing problems

Standard

error

z -

statistic

< 50 149 25.50%

> 50 51 76.47% 7.89 6.46

As shown in the above table Z = 6.46 which is greater than 1.64 hence we reject H0 and

accept H1. Thus it can be concluded that young people face less problems than that of

senior citizens with respect to lack of knowledge. Therefore, this hypothesis is accepted.

170

CHAPTER 6

FINDINGS AND SUGGESTIONS

On the basis of information collected from the primary and secondary sources, as well as

analysing the same, the researcher presents the findings of the study and suggestions. The

chapter is divided into the following four sections;

Section I : Computerisation in the banking sector

Section II : Findings of the research.

Section III : Suggestions based on the research

Section IV : Scope for further research

Section I – Computerisation in the banking sector

For the past three decades India’s banking system has several outstanding achievements

to its credit. The banks are the main participants of the financial system in India. The

banking sector offers several facilities and opportunities to their customers. The bank also

offers investment and insurance products. As a variety of models for cooperation and

integration among financial industries have emerged, some of the traditional distinctions

between banks, insurance companies, and securities firms have diminished. From the

review of the literature the observations are noted in following paragraphs:

Many banks in India have introduced IT for several reasons:

• Rising competition in banking industry and other financial institutions

• Globalization in the banking sector

• To meet the growing demand of customers for mobility, speed, efficiency, and

economy through various technology based services

• To provide anywhere, anytime, banking services to the customers.

• Technological revolution in the Indian economy

171

From the IT’s perspective the banking industries have been classified into three

categories:

• Banks where all the processes are automated

• Banks that are in the process of implementing the core banking software and

setting up their networking infrastructure

• Banks that are in the process of identifying the core banking solutions

Following different levels of computerisation have been adopted by the banking

organizations:

• Back office application

• Total Branch Automation

• Core banking solution

Various e-banking services offered by the banks are as follows:

• Electronic clearance system

• Electronic funds transfer

• Internet banking

• ATM

• Mobile banking

• Telephone banking

• Credit cards / debit cards / smart cards

• PC banking

Section II – Findings of the research

The researcher has analysed the primary data to study the problems faced by the co-

operative banks in implementing the computerised system and to suggest the remedial

measures .Besides, to forecast the prospects of the computerisation in all different banks

in general and in co-operative banks in particular. The findings based on analysis of the

data are presented as follows:

172

Part I : Computerisation of the co-operative banks in Pune

Part II : Views of the employees regarding the bank computerisation

Part III : Views of the customers regarding computerised banking services

Part I : Computerisation of the co-operative banks in Pune

The researcher has selected 18 co-operative banks in Pune city for the purpose of the

study. The researcher has interviewed the Heads of the IT departments / EDP incharge of

the respective co-operative banks in Pune. The primary data was collected from these

respondents by serving them the structured questionnaire.

Based on the study, the researcher has come to certain findings and had offered some

recommendations for improving the working process of co-operative banks. Some of the

important findings are listed below:

1. The present co-operative banking scenario is far from the anywhere and any time

banking. This is mainly because the system reengineering for anywhere and anytime

banking demands use of high level of technological tools on one hand and strengthening

the infrastructural facilities like communication system, networking etc. on the other

hand. In addition to the enhancement of knowledge, skills of the bank employees play an

important role to achieve this end. This apart, the level of awareness amongst the

customers, consciousness of the banks for extending such facilities to the customers is

very low so that the co-operative banking sector has not yet considered the anywhere and

any time banking as one of the important parameters for their customer service. The

reasons for non implementation of anywhere and anytime banking in the co-operative

banking sector are listed as follows (Ref. Chapter 5 Table 5.17):

1. Lack of consciousness of the co-operative banks about extending facilities, like

anywhere and anytime banking to the customers

2. Lack of awareness amongst the customers about their rights to various banking

facilities

3. Lack of necessary computerised systems and tools

173

4. Lack of proper communication system required for such facilities

5. Requirement of the funds for investment on computer and communication system

6. Lack of knowledge and skills of the employees of the banks

7. Lack of IT literacy of the customers who are to use the technology to avail

themselves of the facilities

8. Resistance against change in the system by all levels of the employees and

management including top executives of the banks

9. Delay in framing rules and regulations for electronic transactions

2. Cosmos Co-operative Bank Ltd. Pune is the oldest co-operative bank established in

1906 and the latest co-operative bank is Udyam Vikas Co-operative Bank Ltd. which is

established in 1989. Maximum numbers of 8 co-operative banks were established in the

period 1971-80, followed by 3 co-operative banks in 1911-20. There are 2 co-operative

banks established in 1941-50, and other 2 in 1981-90. Hence, it has been observed that

the maximum numbers of 61.11% co-operative banks were established after

independence (Ref. Chapter 5 Table 5.1).

3. Saraswat Co-operative Bank has the highest number of branches to the extent of 170

and out of them 17 (10%) branches are located in Pune city. It is followed by Cosmos

Co-operative Bank having 65 branches in Maharashtra state out of which 30.58%

branches are located in Pune city and remaining 30.58% branches are located outside

Maharashtra state. Thane Janata co-operative bank has total number of 65 branches in

Maharashtra , out of which 26.15% branches are in Pune city. Karad Urban Co-operative

Bank has total number of 48 branches in Maharashtra and 14.58% branches in Pune city.

There are 41 branches of Rupee Co-operative Bank in Maharashtra and 51.21% branches

in Pune city. Shri Laxmi Co-operative Bank Pune has the lowest number of 4 branches

and all of these branches are in Pune only. Out of total number of 568 branches of 18 co-

operative banks, 36.80% of the branches are in Pune city (Ref. Chapter 5 Table 5.2).

4. Most of the co-operative banks in Pune have adopted computerisation according to

their financial capacity. About 18.19% co-operative banks have adopted core banking

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solutions to provide centralised services to their customers out of which only 7.27%

banks are providing all types of high class services with electronic channels to their

customers. Whereas 45.55% co-operative banks have implemented total branch

automation (TBA) and 36.26% co-operative banks are still working on the back office

application (BOA). Website is the basic requirement of all financial institutions, but still

out of selected 18 co-operative banks 55.60% co-operative banks do not have their

website whereas only 44.40% co-operative banks have their website. Out of the selected

18 co-operative banks, 6 co-operative banks from Sr. No. 1 to 6 (Chapter 5 - Table 5.1)

have adopted computerisation for their banking transactions such as back office

application(BOA), Total Branch Automation (TBA)and core banking solution(CBS).

These banks have taken a period of 20 years (1988 to 2008), to complete the process of

computerisation. Secondly there are other 11 banks from Sr.No. 7 to 17 (Chapter 5 -

Table 5.1) who have adopted computerisation partially, whereas only 1 bank is still

working on back office application (BOA) (Ref. Chapter 5 Table 5.7 and Table 5.9).

5. About 33.30% of the co-operative banks have responded that 26 – 50% of the

customers are still using traditional way of banking for doing their transactions. It is

followed by 33.30% of the co-operative banks who have the opinion that 75% and above

customers are using traditional banking transactional method for doing their banking

transactions. Further, remaining 16.70% of the co-operative banks recorded that 51 - 74%

of customers used traditional transactional system for banking operations. And last but

not the least 16.70% of the co-operative banks have the lowest proportion of customers

using traditional banking transactions to the extent of the range below 25% (Ref. Chapter

5 Table 5.5).

6. The banks have faced different problems during the computerisation process. The

problems faced by the banks at different stages of the computerisation are listed below :

• Problems faced by the banks during implementation of back office application:

Duplication of work: During back office computerisation maximum numbers of

77.80% of the co-operative banks have faced the problem of duplication of work

175

Limited functionality: There are 66.70% of the banks that are of the opinion that

limited functions are offered by the back office application software

Benefits to the customer: There are 61.10% of the banks that are of the opinion

that back office computerisation is not beneficial to the customer because it is

mainly used only for the back office transactions (Ref. Chapter 5 Table 5.11)

• Problems faced by the banks during implementation of total branch

automation:

Data back up: While transferring from back office computerisation to Total

Branch Automation a maximum numbers of 88.90% of banks have faced the

problem of data back up which is to be carried out either daily/weekly/monthly

according to the requirement of the bank.

Antivirus Updating : 72.20% of the banks have faced the problem of antivirus

updating to protect their systems against virus.

Data conversion: 72.20% of the banks have faced the problem of data conversion.

Employee resistance to accept bank computerisation: Further 55.60% of the

banks stated that there is resistance of the bank employees to accept the

modernisation / computerised banking system.

Lack of technical knowledge: 27.80% of the banks are of the opinion that their

staff does not have an in depth knowledge of computerised transactions.

Limited services to the customer: 33.30% of the banks have stated that with the

help of TBA banks are providing limited services to the customers and hence total

branch automation is not fully beneficial to them.

Y2K problem: 22.20% of the banks have faced Y2K technical problem.

Communist movement: 16.70%of the banks have pointed out that the banks union

leaders opposed the banks from implementing Total Branch Automation.

Unemployment: 11.10% of the banks have stated that computerisation could lead

to the problem of unemployment (Ref. Chapter 5 Table 5.12).

176

• Problems faced by banks during implementation of core banking solution:

At the time of implementation of core banking solution, maximum numbers of

94.40% of the co-operative banks have faced the problem of huge investment in

computerised infrastructure and the problem of more dependability on outside

service providers. It is followed by 88.90% of the co-operative banks who

complained that a very complex hardware and software is used for CBS. 72.20%

of the co-operative banks stated that it is difficult to detect the problem in case of

system failure in CBS environment. 61.10% of the co-operative banks have stated

the problem of unwillingness of the customers to use core banking services.

61.10% of the co-operative banks have put forth the problem of the employees

health while implementing core banking solution in which the worker had to work

on a computer for each and every transactions for more than 8 hours a day which

leads to backache and eye trouble (Ref. Chapter 5 Table 5.13).

7. Although technological developments and infrastructural improvements are coming up

very fast, it needs a huge financial investment for any individual bank in order to have the

full benefit of such developments/improvements. Many co-operative banks are not in a

very sound financial position as profitability of those banks is on a decline. Thus many

co-operative banks are not be in a position to invest a huge amount in the technological

areas, although it is highly necessary for their survival as the private sector banks and the

foreign banks are posing stiff competition to them particularly in the areas of customer

service, business growth and profitability (Ref. Chapter 5 Table 5.17).

8. Regarding e-banking services provided by co-operative banks, hardly 33.33% of the

co-operative banks have provided ATM facility to their customers. Only 05.55% of the

co-operative banks offer telephone banking service to their customers. 11.11% of the co-

operative banks have provided internet banking facility. There are 16.66% of the co-

operative banks which provide mobile banking services. Hence, it has been observed that

the co-operative banks are lagging behind in utilising e-banking services (Ref. Chapter 5

Table 5.15).

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9. Different banks use different types of software for their banking transactions according

to the requirement of the bank and cost of the software. The most used software are

OMNI, OMNI SETU, Electra, Finacle. 5 co-operative banks are using OMNI SETU

software for providing CBS services to their customers. Saraswat Co-operative Bank Ltd.

Pune is using Finacle software for CBS services. For Total Branch Automation

transactions various software are available namely: Bankplus, OMNI, HMA Startware,

Shree Bhushan, Plutus, Banker123, BankEasy, Arthlekha.

The Cost of OMNI software which is used for core banking solutions is above Rs. 15

crore and hence it is beyond the financial capacity of most of the co-operative banks. The

software namely FINACLE, Electra star switch, HMA starware, Electra ATM are also

used for CBS transaction but the cost of these software is also above Rs.10 crore which is

not affordable to small or middle size banks (Ref. Chapter 5 Table 5.16).

10. In the changing environment the customer prefers anywhere, anytime banking and

rarely visits their bank branches. Thus the banks need not open so many offices and they

can very well do their business from a few offices using IT tools. Thereby the cost of

maintenance of the offices can be reduced considerably (Ref. Chapter 5 Table 5.17).

11. In anywhere and anytime banking, the banks have to perform the job of consolidation

of data at one of the branches, known as Master branch. At this master branch all the

transactions are merged and reports are generated and collected at one point and such

reporting system is simpler. Thus, reports, particularly the management information

system (MIS) reports will be available to the senior management more quickly,

accurately and systematically. This will help them to take important decisions. Thus, the

decision making process becomes quicker and accurate in anywhere anytime banking

environment (Ref. Chapter 5 Table 5.17).

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Part II : Views of the co-operative bank employees regarding computerised banking

services

1. About 85.00% of the co-operative bank employees have positive reaction, to the

decision of the bank in accepting computerised banking system. Out of them 18.82% of

the co-operative bank employees are in age group of 18-30, 63.52% of the employees are

in the age group of 31-45, and 17.64% employees are in age group of above 45. There are

13.00% of the co-operative bank employees who reacted negatively to the decision of the

bank in respect of accepting computerised banking system. Out of them 15.38% of the

co-operative bank employees are in the age group of 18-30 and other 84.61% are in the

age group above 45 years. The other 2.00% of the co-operative bank employees did not

respond to the question as they might not be aware of the change. Out of them 1 is in the

age group of 31-45 and the other is in the age group of above 45. Therefore it can be

concluded that bank employees are more positive about the computerised banking system

(Ref. Chapter 5 Table 5.22).

2. The Maximum number of 84.00% of the co-operative bank employees expressed that

the lack of thorough knowledge of technology is their problem in implementing

computerised system in the bank. 40% banks employees have no confidence in

implementing the computerised system.15% of the co-operative bank employees have

fear of losing the job because of computerisation. 8.00% employees are worried about

losing the contact with the customer by implementing computerised system. Therefore, it

can be concluded that lack of thorough knowledge of technology is the major problem of

the bank employees which is followed by lack of confidence, and fear about the job

security (Ref. Chapter 5 Table 5.25).

.

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PART – III: Views of the co-operative bank customers regarding the bank

computerisation

1. Traditional Transactions: An analysis of the traditional banking transactions used by

co-operative bank customers is shown in the following table.

Table 6.1 The transaction wise classification of customers visiting their co-operative

bank and using traditional banking transactions:

Sr. No Type of transaction No. of customers Percentage


2. Deposit 117 58.50%



5. Cheques 150 75.00%

6. Demand drafts 145 72.50%


8. Bill payment 85 42.50%




From the above table it has been observed that the maximum number of 81.00% of the

customers visit their banks for updating their passbook .This is followed by 75.00%

customers who visit banks for cheque transaction and 72.50% who visit their bank for

demand draft transactions. About 63.50% of the customers visit the bank for their

investment transactions and 58.50% of them visit their banks for withdrawal and deposit

transactions. For the bill payment transaction 42.50% of the customers visit the banks

followed by 41.00% customers who visit their bank to enquire about their account

balance. For money transfer transaction and repayment of loan, 40.00% and 28.50% of

the customers respectively, visit their banks. Finally, only 11.00% customers do not visit

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their banks for any of the above mentioned transactions. From the above analysis it is

clear that the customers visit their banks for various transactions like cheques, demand

draft, money transfer etc.

2. Computerised transactions: The following table shows the analysis of computerised

transactions used by the customers.

Table 6.2 Transaction wise classification of customers using computerised services

Sr. No Type of transaction No. of customers Percentage


2. Deposit 72 36.00%



5. Cheques 11 05.50%

6. Demand draft 03 01.50%


8. Bill payment 56 28.00 %




From the above table it has been observed that 64.00% of the customers do their

transactions by using computerised transaction system. This is followed by 51.50% of

the customers who use this facility to enquire about their balance. Further 36.00%

customers utilize this facility to deposit their savings. 28.00% customers use it for

payment of bills. 25.50% customers use it for money transfer. 12.50% customers use this

facility for repayment of loan. However about 30.50% do not use this service for any

transactions.

Hence, it can be concluded that even though banks have introduced computerised system,

the customers are still accustomed to the traditional method of banking transactions. They

have a common purpose of depositing the amount or withdrawing it, either by cash or

181

cheques and always visit their banks to enquire about their balance. There is still scope

for each customer to use the computerised transaction system for deposit cash or cheque,

money transfer, repayment of loan, demand draft and investment.

.

3. Problems faced by customers with e-banking services:

Since computerised banking system is different from the traditional system because of the

use of technological tools, the customers face difficulty in handling banking transactions,

particularly at the initial stage. In the age group of 26 – 50, 30.50% of the customers

agree that they have problems with e-banking services and also fear about the security in

the transaction, but 12.50% do not agree to this opinion. In the age group of above 50

years, 19.50% of the customers agree that lack of knowledge about the computerised

transactions is the real problem. This is followed by 17.00% of the customers in the age

group of below 25, who fear about the security in the banking transaction. They do not

feel that the computerised transactions are secured transactions. Due to the above

problems 50% customers still use traditional transaction system for banking services.

Senior citizens do not accept any kind of change in the current situation, but youngsters

are always willing for a better change (Ref. Chapter 5 Table 5.36).

4. Use of e-banking services:

Table 6.3 Transaction wise classification of e-banking services used by customers

Sr. No Type of e-banking services No. of customers Percentage

1. ATM 137 68.50%




5. PC banking 00 00.00%


About 68.50% of the customers are using e-banking services and particularly ATM

service for their day to day banking transactions, where as 26.50% of the customers make

182

use of internet banking services. There are 16.00% of them who are accustomed to

mobile banking. Finally there are 20.50% of the customers who are still using traditional

banking system for their banking transactions. It is therefore suggested that banks should

take the responsibility to make the customers aware of e-banking services. These

customers can be approached by the bank by organizing their meetings or distributing the

pamphlets giving full information about e-banking transactions. Globalisation has

opened windows to the other nations especially the NRI customers who are in search of

modernised banking services in their native town for carrying out banking transactions

(Ref. Chapter 5 Table 5.32).

5. Advantages of computerisation (Ref. Chapter 5 Table 5.34):

Table 6.4 Customers views about computerisation in banks

Sr.

No

ASPECTS Agree Disagree Total

1. Reduction in waiting time 163

(96.44%)

06

(03.55%)

169

(100.00%)

2. Secured transactions

(Withdrawal transaction)

128

(82.05 %)

28

(17.95%)

156

(100.00%)

3. Increased service efficiency 183

(100 %)

00

(00.00%)

183

(100.00%)

According to the views of the customers following are the main advantages of the bank

computerisation:

a) Computerisation reduces waiting time for banking transactions.

b) Computerised transactions are secured transactions.

c) Computerised transaction has increased service efficiency.

6. Convenience of customers with e-banking services:

Table 6.5 shows the usage of e-banking services by customers and it’s convenience

(Ref. chapter Table 5.32 and Table 5.33)

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Table 6.5 Transaction wise convenience of customers with e-banking services.

Sr.

No

Type of e-banking

services

No. of customers

Using

E-banking

services

No. of customers

(convenience of

e-banking

services)

Percentage

1. ATM 137 120 87.59%

2. Internet banking 53 47 88.68%

3. Mobile banking 32 25 78.13%

4. Telephone banking 10 06 60.00%

5. PC banking 00 00 00.00%

It has been found that out of total customers using e-banking services 87.59% of the

customers find it convenient and are comfortable with ATM banking services whereas

about 88.68% of them have opted for internet banking facility. This is followed by

78.13% of the customers who deal with mobile banking and finally 60.00% of the

customers have chosen telephone banking facility provided by the co-operative banks.

Hence, it can be concluded that when comparison is made between the customers using

e-banking facility and having confidence in it, it does not indicate any variation. It means

it is only the matter of compulsion that bank should bring maximum customers under the

e-banking network (Ref. Chapter 5 Table 5.32 and Table 5.33).

7. Agewise customer’s reactions about e-banking services:

While availing e-banking services customer faces many problems. Fear about transaction

security and lack of knowledge about technology are the major problems faced by the

customers while using computerised / e-banking services. The middle aged (26 – 50

years) customers are strongly of the opinion that e-banking services would create more

problems than not. But the customers below 25 years, who are significant in numbers,

disagree with this statement. Senior citizens do not accept any kind of change in the

current situation. But the youngsters are always willing a change for the better and are

prepared to experiment with any new technology (Ref. Chapter 5 Table 5.36).

184

8. Problems of e-banking services:

The main problems being faced by the customers while using e-banking services are as

follows:

• Limited Scope for inter-personal advice in bank

• Computerisation does not establish direct communication with the bank.

• Computerised transactions can be problematic sometimes.

• Fear about financial transaction security

• Due to lack of knowledge , customers fear to handle computerised transactions

From the above listed problems the major problems being faced by the bank’s customers

are: fear about the security of financial transaction and lack of knowledge about

technology (Ref. Chapter 5 Table 5.36).

Section III Suggestions based on the research

Information technology has transformed the business environment all over the world. It

has had a major impact on banking sector with the introduction of number of e-channels

like ATMs, ECSs, EFTs, credit cards, internet banking, mobile banking, telebanking etc.

It has bridged the gaps in terms of the reach and coverage of the systems, and enabled

better management of banking business. But with information technology based banking

business, banks should keep some important aspects in mind. These aspects are:

• Computer literacy of customers: In case of core banking a very high level of

technology is used at both the branch and customer level. The customers may not be

familiar with the level of IT. In such cases, the customers may not feel comfortable in

handling business transactions with their banks. The banks have to play an important

role in educating their customers in this area.

• Training of employees: In some cases, the employees of the banks may not be in a

position to handle such sophisticated level of technology because of lack of

185

knowledge or skill. This is more so in case of Indian banks. Therefore, the top

management of the banks should take the necessary steps to provide adequate training

to their employees in the IT area so that the employees feel more comfortable in

handling high technology based transactions.

• Optimum use of bank employees services: With the use of technology most of the

bank work can be computerised. Manual intervention of various banking jobs will not

be needed. At the same time, since the customers will mostly do the banking

transactions from their own place, their visit to the bank branches will be reduced

considerably. Thus, the counters of the bank branches will be less crowded resulting

in minimisation of the workload in the branches. Thus, the employee will get more

and more free time. The management of the banks will have to decide about how the

employees can be optimally utilized for various banking jobs other than the

traditional banking functioning.

• Introduce new technology: Physical location of the bank branch will be less

important and possibly irrelevant as new technologies such as ATMs, internet

banking, mobile banking etc. provide wider access to a broad range of new

facilities/service.

• Co-operation rather than competition among banks: Despite competition amongst

various banks, a greater degree of co-operation amongst them will be forthcoming

which will benefit all the banks. For example, an ATM placed at a centralised

location of a city may be shared by many banks. This will simplify operational

complexities and at the same time be cost effective for all the banks. Similarly,

network may be shared by various banks to make it cost beneficial. Thus, competition

will not prevent co-operation and collaboration amongst various banks to provide all

kinds of service/facilities through strategic alliance.

• Preventive measures to avoid interruption in computerisation: The database of

the banks will be accessed by so many customers and as such there is more possibility

186

of the database getting corrupted because of virus or some other reasons. In such

eventualities the whole system will be stalled. Therefore, the banks have to take

abundant precautionary measures against occurence of such incidents and such

measure should be taken on preventive basis at regular intervals.

• Cyber crime:

o Misuse of the system by the customers due to ignorance may be a common

feature in the Indian context. For example, while using ATM or Point of Sale

(POS) terminal, the customers are to use their customer index number. In case

the customers give a wrong number thrice or so, the system will capture the

cards. The banks are to be very careful in returning those cards to the genuine

customers in order to prevent frauds.

o Some customers having the terminal at their places may be very

knowledgeable about computer and communications. Some of them may try

to decipher secret codes of the database or encrypted messages for ulterior

motives which may lead to serious type of frauds of higher magnitude or

frauds with serious implications. The banks should therefore take steps for

adequate logical security to prevent such frauds.

• Optimal use of IT tools: Owing to their sound capital base private, public and

foreign banks can invest huge funds for technological developments; use the IT tools

optimally to their benefit. In comparison with this, the cooperative banks are falling

behind in this area due to their poor capital base. In order to cope with this tough

situation, the weaker of the co-operative banks may consolidate themselves by going

for a merger so that the merged unit becomes a bigger one with sound financial base

and a stronger force to reckon with. This will enable them to invest funds on

technological developments which are essential for extending anywhere and any time

banking to the customers.

• Enrich knowledge of employees: The banks should also take steps for enhancing

the level of knowledge and skill of their employees at all levels including top

187

executives by imparting training in IT. The employees of all categories should be

motivated through training on behavioural science so that there is perceptible change

in their attitudes about the new technologies they are going to handle in the future.

Section IV Scope for future research

The present study deals with the problems and prospects of the bank computerisation of

co-operative banks in Pune city. This study is limited only to the co-operative banks and

that too in Pune city. The researcher is quite aware of the fact that there are several other

aspects of the bank computerisation that could be studied such as cost benefit analysis of

computerised transactions, management related issues regarding bank computerisation,

comparative study between banks utilizing computerisation and banks yet to utilize

computerisation. Our study is limited only to the problems of bank computerisation in co-

operative banks. But there is still scope for the study of problems of bank

computerisation in commercial and nationalised banks as well.

chapter 5 problems and prospects of co-operative banks...

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