A Study On Internet Banking In Nepal

A learning On profits Banking In NepalThis query is the effort for register and analyzing the earnings Banking in Nepal Bank Limited. net income Banking can be defined as the use of technology to communicate instructions to and receive culture from a financial refuge w present an sexual conquest is held. internet Banking includes the arrangements that modify financial institution customers, individuals or businesses, to assenting accounts, transact business or obtain training on financial products and service by means of a public or private network, including the earnings.Since the launch of network the large planet has become a smaller one. It has rendered enormous impacts on business beas. Remarkable emergence in development and Communication Technology (ICT) has introduced a global revolution in banking industry. The global trend in business bena set few challenge that cannot be fulfilled with the help of the traditional banking system.The survey of verit able banking system in Nepal reveals the fact that it requires rapid modification and adaptation to musical accompaniment harmony with the world economy business. It becomes more obvious by notice the increased number of customers in or so modern bank art object others be losing them.The existing banking system in our country is slow and error-prone. In one hand, fails to meet the customers demand and it causes some significant losses both(prenominal) for the banking authority and divvy uprs. E-Banking, on the other hand solves the above problems. Furthermore, it opens up some other salient aspects much(prenominal) as increased fo reign trade and foreign investment.Most plan allow customers to perform all figure transactions, much(prenominal) as account transplants, balance inquires, bill hires and stop defrayment requests everything however its very easy to set up an account. We can regain our account cultivation anytime day or night and we can do it from anywhere. A few online banks update information in real time, sequence others do it daily.1.2 Introduction of Origin and Growth of Bank in NepalThe increase of banking in Nepal is not so long. In comparing with other create or developed country, the institutional information in banking system of Nepal is farther behind. Nepal had to wait for a long time to come to this present banking position. The course of bank in Nepal and its beginning of growth is controversial.Even though the particularised date of the beginning of money and banking deal in Nepal is not obvious, it is speculated that during the reign of the King Manadev, the coin Manank and Gunank during the reign of the King Gunakamadev were in use. subsequently the make-up of Nepal Bank Limited on 30th Karkik, 1994 (1938), modern banking system started in Nepal.Under the Nepal Rastra Bank Act 2012 (1956), Nepal Rastra Bank was turn outed in 2013(1957) Baisakh fourteenth in Nepal. But this act has been repealed and the Nepal Rastra Bank Act 2058(2002) has been enacted by the parliament. After its establishment, it issued the Nepali notes on 7th Falgon 2016 for the first time.Gradually, bank develop their service in Nepal according to requirement of customers and to compete market so at once we can transact via non cash elements desire profit Banking, Credit Card, asynchronous transfer mode Card and SMS banking and so on1.3 Nepals ICT BackgroundNations worldwide admit recognized development opportunities and challenges of the emerging information age characterized by Information and Communication Technologies (ICT). These technologies ar driving matter development efforts worldwide and a number of countries in both developing and the developed world are exploring ways of facilitating their development process through development, deployment and the exploitation of ICT within their economies and societies.Nepals journey into the world of information technology began some ternary decades back with the use of IBM 1401 for the population census, 1971. over-embellished Nepal Academy for Science and Technology (RONAST), for the first time, use the internet. Mercantile mystic Limited started email function for commercial purpose in June 1994. In 1995 government purchased the machine for further info processing in the pectus of Statistics and established a separate organization called Electronic info impact Center (EDPC) and after 6 years it converted to National computing device Center (NCC).Government has formed High Level Commission for Information Technology (HLCIT), which is playing the role of facilitator between private and public sector in the development of ICT in Nepal.1.4 Introduction of Internet BankingInternet banking refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal estimator (PC) or other brainy device.Internet banking products and services can include wholesale products for corporate customers as well as retail and fiduciary products for consumers. Ultimately, the products and services obtained through Internet banking may mirror products and services offered through other bank livery channels. Some instances of wholesale products and services includeCash management.Wire transfer.machine- visitled clearinghouse (ACH) transactions.Bill presentment and payment.Examples of retail and fiduciary products and services include offset inquiry.Funds transfer.Downloading transaction information.Bill presentment and payment.Loan applications.Investment activity. another(prenominal) value-added services.Other Internet banking services may include providing Internet access as an Internet Service Provider (ISP). The OCC has determined that a national bank subsidiary may provide home banking services through an Internet connection to the banks home banking system and, incidental to that service, may to a fault provide Internet access to bank customers victimiza tion that service. Historically, banks use up use information systems technology to process checks (item processing), drive ATM machines (transaction processing), and produce reports (management information systems). In the past, the computer systems that made the information systems operate were rarely detect by customers. Today, Web sites, electronic mail, and electronic bill presentment and payment systems are an important way for banks to reach their customers.1.5 Statement of the ProblemEstablishing Internet Banking infrastructure has been a challenging task for the developing countries like Nepal. In the context of Nepal there are ample of problems in Internet Banking some of them are given below Computer and Banking Literacy In aggregate here is low object lens of IT literacy. Very few people are computer literate in Nepal and very few people transform banking system or banking process even educated people in like manner there. bag Development Though banks reach with t heir services in rural area ISP or NTC services is not available there for internet services and vice versa.Risk Management In Nepal, Internet Banking is at its babyhood right now. However, no Internet Banking frauds have been found yet. Lack of apprehensiveness of internet technology may be the reason. But precaution mustiness be taken.In order to mitigate the risks associated with all e-banking businesses, banks should have in place a comprehensive risk management process that assesses risks, control risk exposure and monitors risks.Security Security of a transaction, authenticity of a deal, identification of a customer etceteraare important technological and systems issues, which are major sources of concern to e-banking. Customers are afraid from online attack. Various online attacks are also available.1.6 Objectives of the written reportThe main objectives of proposed query are to aim, analyze and understand the Internet Banking of Nepal Bank Limited. Some of the other objectives are as follows To identify the problems in existing Internet Banking services of NepalAre public satisfy or not from Internet banking Services ? If not what go out be the strong service delivery mechanism.To identify the prerequisites to get the Internet Banking servicesThe research tell prerequisites to get Internet Banking services (for e.g. Computers, telephones, internet, customer should be account holder of bank)To examine the service delivery of different banks of NepalThe research includes various(a) types of Internet Banking services provided by different banks to general public.1.7 Scope of the StudyThe study will be mainly focused on three components of the study area Social aspects In social aspect the canvass is focus on public participation according to their satisfaction, knowledge, beliefs, values etc.Technical aspects This aspects is concerned with the technically how to develop system and technology used on projects.Economic aspects In the economic analysis part, the study will focus on the possible areas of economic development by using this Internet Banking.1.8 Limitation of the StudyThis research is the small effort for study and analyzing the Internet Banking services of Nepal which has limited time so it cannot focus on all areas and may not be able to explore galore(postnominal) fields. This research work is done within limited time sick during the MBS dissertation. There are so many constraints while doing the work such as inadequate time, load shedding, and resources etc. To understand methodology of Internet Banking service is very difficult because banks only provide surface level of information because of their security concern.In spite of great effort, there are many limitations of this research work. The major limitations are as follows In the field of E-banking, there are so many arenas like ATM, Tele Banking, Mobile Banking etc. but this research does not focus on all the e-banking services. research works mainly focus on Internet Banking.Fund transfer is possible within the branch of bank. It means once cannot transfer come in from one bank to another bank.Banks have their own policy but there is no any standard policy for Internet Banking in Nepal.In the field of Internet Banking security is must but this research doe not cover all the aspects of security.General customers and corporate customers of Internet Banking system have same kinds of facilities.1.9 Organization of the StudyThis study is nonionic and decorated in seven chapters. Each chapter and unit will be on a prescribed format of thesis writing to the partial fulfillment of MBS program. Each unit gives the clear picture or roadmap of the study.Chapter integrityThis chapter deals with Introduction of The Study. In this chapter, separated unit for background, significances objective and limitation of the study has mentioned.Chapter TwoThis chapter focused Review of Literature. In this chapter, various relevant such as d ifferent books, journals, article and previous thesis mention has mentioned.Chapter trioThird chapter presented query Methodology. In this chapter, research heading, sources of the data, method of data army and analysis has mentioned.Chapter FourThis chapter deals with Analysis of Internet Banking. This chapter provides the different analysis like strength, weakness, opportunity, threat (SWOT) analysis and feasibility analysis of Internet banking.Chapter Five 5th chapter deals with Internet Banking Security. Security in Internet Banking comprises both the computer and communication security. Therefore this chapter consist different security principles, cryptographic key management, maraud etc.Chapter SixThis chapter focused on System Analysis and design to present the current Internet Banking system. This chapter provides requirement analysis, process modeling, data dictionary, hardware and software requirement to execute program.Chapter SevenS returnh chapter presented with S ummary, Conclusions and Recommendation of the Study.1.10 Research DesignThere are two types of research approaches soft and quantitative. In the quantitative approach firmnesss are based on numbers and statistics that are presented in figures, whereas in the qualitative approach where focus lies on describing an event with the use of words.This study is the result of qualitative research using comparative and analytical methods. The comparative research was conducted in two ways Firstly, the comparison is carried out by canvass the availability of basic services of Internet Banking in different banks of Nepal. Secondly, the comparison is also carried out by investigating the different features offered by banking institutions in Nepal. For that purpose, reviews of website from banks are conducted.Thus to gain realistic knowledge of Internet Banking in the Nepali context, this research is conducted as a qualitative study to explore the perception of Internet Banking among Nepali Banks. Hence, the aim is not to make any simplification but instead establish a closer contact with the objectives of prior research which intend to provide us a deeper understanding of the participants attitudes and perceptions. Finally my intention with this research is to understand Internet Banking first describe and explore, find and analysis detailed information about Internet banking services provided by different banks of Nepal so qualitative approach is the most suitable method for my research.1.11 Source of Data two simple as well as secondary data have been collected in order to achieve the real and factual result out of this research. All possible and useful data available have been collected. The major sources of data are as follows a. Primary SourceThe primary data are collected from primary sources. The primary sources of data are the opinion survey through questionnaire, field visit and information original from the respondents. Some of the information was also co llected from interview with the respondents.b. Secondary DataThe secondary data are collected from secondary sources. The secondary sources of data are the information received from books, journals and article concerned with the study for example website of the Nepal Bank Limited, thesis and dissertation submitted at Shanker Dev Campus, Central Library T.U.