Online Banking System of Dhaka Bank Limited

Major focus of this report is to analysis the Online Banking System of Dhaka Bank Limited. Other objectives are find out the strength and weakness of online banking services and discuss how it’s performed through the internet also find out what are the benefit of online banking. By online banking system Dhaka Bank provide different type of services like Cash management, Wire transfer, Bill presentment and payment, Balance inquiry, Funds transfer, Downloading transaction information, Loan applications, Investment activity etc.

Introduction

Online banking is the practice of making bank transactions or paying bills via the Internet. Thanks to technology, and the Internet in particular, we no longer have to leave the house. We can shop online, communicate online, and now, we can even do our banking online. Online banking allows us to make deposits, withdrawals and pay bills all with the click of a mouse. It doesn’t get much more convenient than that the benefits are many.

For the online banking customer, the convenience factor rates high. No longer does a person have to wait for the bank statement to arrive in the mail to check account balances. One can check the balance every day just by logging onto one’s account. In addition to checking balances and transactions, one can catch discrepancies in the account right away and deal with them swiftly. The best part is that this can be done anywhere! As long as one has Internet access, one can practice online banking.

Since bills are paid online, the necessity of writing checks, affixing postage and posting the payment in the mail is eliminated. Once the amount is entered and the payee is checked off, the funds are automatically deducted from the payer’s choice of account. Since the cost to the bank is minimal, the cost to the consumer, in many cases, is also minimal. While there is usually a fee for online banking, it can be extremely low. Those who partake in online banking all agree it’s worth every penny. Not having to spend all Saturday morning standing in a crowded bank line is justification for most. It can even pay for itself since costs like postage and ATM fees are reduced.

Online banking also eliminates paper waste, which is a plus not only for those who have to handle all the paper work, but also for the environment. Security is always an issue with Internet transactions. Although information is encrypted, and the chances of your account being hacked are slim, it happens. Banks pay big bucks to install high tech firewalls. Chances are your money is in good hands.

You’re also missing the personal service. No smiling teller or representative hands you receipt. Instead, except for what’s printed into your account, all the paperwork is up to you. Always print copies of important transactions. If you have to deposit cash or checks, you’ll still have to spend time at the ATM. unless payment to you is directly deposited; this is one thing you’ll always have to handle manually. Still, the benefits far outweigh the risks. The convenience of online banking is a perk well worth the cost. What would you rather do, stand in a long line on a weekend morning or handle your transactions in the comfort of your own home.

Internet banking” refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC) or other intelligent device. Internet banking products and services can include 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 delivery channels. Some example of wholesale products and services include:

• Cash management
• Wire transfer
• Automated clearinghouse (ACH) transactions
• Bill presentment and payment
• Balance inquiry
• Funds transfer
• Downloading transaction information
• Bill presentment and payment
• Loan applications
• Investment activity

Objectives of the study

The aim of our study was to know the Online Banking System of any organization as a partial requirement of the course Money and Banking. Therefore, to obtain this aim we set the following objectives of studies.

BROAD OBJECTIVE:

To Know the Online Banking System of DHAKA BANK LIMITED.

SPECIFIC OBJECTIVES:

• To find out the present scenario of online banking practice in Bangladesh.
• To find out the strength and weakness of online banking services.
• To find out how it’s performed through the internet.
• To find out what are the benefit of online banking.

An overview of Dhaka bank LIMITED

HISTORICAL BANKGROUND OF THE DHAKA  BANK LIMITED

The Dhaka Bank Limited (DBL) is the first private sector bank in Bangladesh. The bank has been operating since 1995 with an authorized capital of Tk.1.75 billon. The noble intention behind starting this bank was to bring about qualitative changes in the sphere of Banking and Financial Management.  Today  the  Dhaka  Bank  serves  its  customers  at home  and  abroad  with  41  branches  spread  over  the  country  and  about  three  hundred oversea  correspondences  covering  the  entire  major  cities  and  business  center  of  the world. The services encompass wide diversified areas of trade, commerce and industry which tailored to the specific need of customers and are distinguished by an exceptional level of prompt and personal attention. Over  the  years  the  bank  has  expanded  the spectrums  of  its  services.  The extensive and ever growing domestic network provides and carries various products and services to the doorsteps of millions.

The  DBL  was  incorporated  as  a  public  limited  company  with  limited  liability  on  the 5^th  July, 1995  and  its  formal inauguration  was on  July  27,  1995 under  company act,  1994  in  Bangladesh  with  the  primary  objective  to  carry  on  all  kinds  of  banking business.  Functioning  as  a  conventional  Bank  in  the  country  since  1995,  it  has  been able  to  consolidate  its  position  in  the  banking  sector.  The bank has been able to establish a solid presence with the customers and general public through its improved Services, value addition in the economy and increasing shareholders value. The bank is listed with Dhaka Stock Exchange and Chittagong Stock Exchange.

DESCRIPTION OF PRODUCT AND SERVICES OFFERED BY DBL

The services offered by DBL are discussed below

Services of DBL

The DBL concentrates the following categories of banking services-

(1) General banking,

(2) Retail banking

(3) Loans and Advances,

• SME (Small & Medium Enterprises)
• Corporate

(4) International Trade and Foreign Exchange,

• Export
• Import
• Remittance

(5) Online Banking Services,

(6) Debit Card and Duel Currency Credit Card Facilities.

Retail Banking

One of the most remarkable success stories of last 50 years’ Banking Industry globally has  been  the  conceptualization  and  innovative  execution  of  banking  with  individual customers,  their  friends  and  families.  The  industry  has  termed  it as  Retail  Banking  or Personal  Banking  or  Consumer  Banking.  The Dhaka Bank Ltd. recently has started its journey in Retail Banking.  More  than  800  staffs  have  been  trained  so  far  on  the  vital concepts  of  service  excellence  and  sales.  In  the  product  side  ATM  fleet  has  been launched,  Debit  card  has  been  issued,  SMS  Banking  has  been  offered,  3  new  deposit products  have  come,  workers’  foreign  remittance  business  has  been  launched,  new many  billboards  have  come  up  and  our  communications  in  media  has  increased, manifold   in  the  endeavor  to  build  a  Retail   Banking  brand  namely   “City  Retail Happiness Counts”.

SME Banking

Considering  the  potential  growth  and  demand  situation  the  Dhaka  Bank  Limited has extended credit facilities to small and medium enterprises through SME Banking in the year  2006  and  2007.A  separate  division  has  established  in  the  Head  Office  with collaboration  of  all  branches  to  process  and  handle  loans  under  SME  for  attaining  a organized several training program for development of adequate human resources.

Corporate and investment Banking

As part of its commitment to provide global quality service, the Dhaka Bank Ltd, one of the  largest  local  Banks,  has  launched  its  Corporate  &  Investment  Banking  Division recently.  This  shift,  from  branch  banking  model  to  business  driven  matrix,  is  the  first step  of  the  bank’s  plan  to  revitalize  its  way  of  doing  business  in  2009.  The  C&I Division  will  comprise  of  a  number  of  relationship  teams  centered  in  Dhaka  and Chittagong  to  provide who will act  as one stop contact  point for  the customers  of the bank.  This  model  has  been  successfully  globally  to  provide  better  service  and  create increased   customer  satisfaction.   The relationship   teams   have been staffed mainly through internal quality resources. The C&I relationship teams have already taken over the  existing  large  accounts  and  servicing  the  customers  to  their  satisfaction.  The C&I have also booked blue-chip customers like Grameen Phone, Epylion group, Banglalink, Ericsson, Meghna Group, Esquire Group, Nandan etc.  Recently  Total  new booking  in last  few  months  is  more  than  BDT  3,000  million.  The C&I Division will also have product team’s i.e.  structured  finance,  Islamic  finance,  leasing,  cash  management  who will meet the specialized  product needs of the corporate customers. The time ahead is going to be very challenging for C&I.  The major challenges shall be to increase the quality of the portfolio keeping in mind the business targets with timely formation and support from other departments i.e. centralized credit administration, operations.

Duel Currency Credit Card

Today’s  customer  wants  services  and  information  to  be  provided  at  all  times  and places.  This  has  become  possible  by  ATMs  and  POS  terminals  and  helped  banks  in achieving “Anytime, Anywhere Banking”. Therefore there is a need for an automated system  that  will  connect  the  branches  through  online  to  provide  better  services  to  the customers.  The  most  modern  technology  based  bank  product  for  making  hassle  free financial transactions and drawing of cash money all over the world is given by Credit Card. The Dhaka Bank Ltd is the first among domestic banks to introduce a unique dual currency CITYCARD under the logo of VISA International in Bangladesh. After obtaining principal membership of VISA on 19 the February, 2003 the bank is pleasing its commitment to be a leader as card issuer in the arena. Tremendous responses are there from the market for this plastic money. Up to March, 2010 the number of CITYCARD is 20,215.

Computerization and Online Service

With   computerization   the   bank   had   gone   another   step   ahead   towards   providing pragmatic,   safe   and   prompt   banking   services.   All   83   branches   including   Islamic Banking Branch are brought under computerization net. Bank has implemented online real  time  banking  through  an  agreement  with  Info  sys  Technologies  Limited  for supply of world reputed banking software “FINACLE”. Within March, 2010 real time banking facilities have been introduced in 37 branches of the DBL. Under this system, Client will be able to do the following type of transactions:

• Easy to withdraw or deposit from any online branch
• Fund transfer with one click, no need TT/DD.
• Customer can easily tell which payments have cleared

 Islamic Banking

The  Dhaka  Bank  Limited  started  its  Islamic  Banking  operation  by  opening  its  first Islamic  Banking  Branch  at  9/H,  Motijheel,  Dhaka.  The salient features of Islamic Banking are as follows:

• To conduct all its activities as per Islamic Shariah.

• To conduct its monetary matters free of interest.

• To establish banker-customer relationship on the basis of partnership.

• To follow Islamic principle in all its investment port-folio.

• To develop living standard of the poor incoming group.

• To render excellent services to the clients cordially.

• To conduct welfare related activities to the people.

SWIFT Banking (SINCE 2000)

The  Dhaka  Bank  Limited  is  one  of  the  first  few  Bangladeshi  Banks  who  has  become member  of SWIFT (Society  for Worldwide  Inter-bank Financial Telecommunication) in  1983.  SWIFT  is  members  owned  co-operative,  which  provides  a  fast  and  accurate communication  network  for  financial  transactions  such  as  Letters  of  Credit,  Fund transfer  etc.  By  becoming  a  member  of  SWIFT,  the  bank  has  opened  up  possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world.

Corporate Governance

The  bank  recognizes  the  importance  of  Corporate  Governance  and  is  committed  to maintain highest standard. A team of experienced professionals maintains the following committees to run the Bank efficiently:

• Management Committee

• Administrative and Disciplinary Action Committee

• Technical and Audit Committee

• Credit committee

• Procurement and purchase Committee

• Asset and liability Committee

FUNCTIONAL DIVISIONS OF DBL

The    Bank    accomplishes    its    functions    through    different    functional    divisions/ departments.  The divisions/departments along with their major functions are listed below:

Financial Division

Financial planning, budget preparation and monitoring

• Payment of salary

• Controlling inter-branch transaction

• Disbursement of bills

• Preparation of financial reports and annual reports

• Preparation/Review of returns and statements

• Maintenance of Provident Fund, Gratuity, Superannuation Fund

• Reconciliation

Credit and risk management

• Loan administration

• Loan disbursement

• Project evaluation

• Processing and approving credit proposals of the branches

• Documentation, CIB (Credit Information Bureau) report etc

• Arranging different credit facilities

• Providing related statements to the Bangladesh Bank and other departments

Branches Control & Inspection Division

• Controlling different functions of the branches and search for location for expansion

• Conducting internal audit and inspection both regularly and suddenly

• Ensuring compliance with  Bangladesh  Bank  (BB),  monitoring  BB’s  inspection  and external audit reports

 Retail Division

• ATM card, Credit and system operation and maintenance
• SWIFT operation

• Credit Card Operation (Proposed)

• Customer and vendor relationship

Deposit Products:

Dhaka bank has various types of Deposit & Advance Products.

Deposit Products are shown below:

• Savings Bank Account (Interest rate 7%)
• Current Account (Interest rate 0%)
• Short Term Deposit Account (Interest rate 6%)
• Fixed Deposit :

Sanchay Plus(SP):

Monthly benefit Plus (MB+):

Double benefit Plus (DB+):

Triple benefit Plus (TB+):

Deposit Pension Scheme (DPS)

Deposit monthly installment ranging from Tk. 500/- to Tk.10, 000/- and on maturity the holder receives a handsome amount as per table below:

Amount Payable at Maturity:

SWOT Analysis of The Dhaka Bank Limited

Every  organization  is  composed  of  some  internal  strengths  and  weaknesses  and  also has some external opportunities and threats in its whole life cycle. This following will briefly  introduce  the  customer  to  The  Dhaka  Bank  Limited’s  internal  strengths  and weaknesses, and external opportunities and threats.

Strengths

• Stable source of fund

• Strong Liquidity position

• Concentrated market

• Wide network of branches

• Experienced top management

• Diversified product line

Weaknesses

• Deposit is lower than advance.

• Officer has limited experience and training

• Small market share in Banking-business

• Long-term credit is not sufficient

• Relatively high overhead expanse

 Opportunities

• Favorable regularity environment
• Private sector development
• Credit card business
• SME and Agro based industry loan
• Can increase the advertising of the Bank

Threats

• Deposit as well as quality assets
• Market pressure for lowering the interest rate
• Shrinkage in export, import and guarantee
• Poor business due to economic slump and war
• Frequency in Currency Devaluation
• Emergence of Competitors
• pressures to reduce interest rate

Online banking system of Dhaka bank LIMITED

Definition

Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated their retail or virtual bank, credit union or building society.

Online banking is the practice of making bank transactions or paying bills via the Internet. Thanks to technology, and the Internet in particular, we no longer have to leave the house. We can shop online, communicate online, and now, we can even do our banking online. Online banking allows us to make deposits, withdrawals and pay bills all with the click of a mouse. It doesn’t get much more convenient than that.

From the perspective of banking products and services being offered through Internet, Internet banking is nothing more than traditional banking services delivered through an electronic communication backbone, viz, Internet. But, in the process it has thrown open issues which have ramifications beyond what a new delivery channel would normally envisage and, hence, has compelled regulators world over to take note of this emerging channel. Some of the distinctive features of I-banking are:

1. It removes the traditional geographical barriers as it could reach out to customers of different countries / legal jurisdiction. This has raised the question of jurisdiction of law / supervisory system, to which such transactions should be subjected,
2. It has added a new dimension to different kinds of risks traditionally associated with banking, heightening some of them and throwing new risk control challenges,
3. Security of banking transactions, validity of electronic contract, customers’ privacy, etc., which have all along been concerns of both bankers and supervisors have assumed different dimensions given that Internet is a public domain, not subject to control by any single authority or group of users,
4. It poses a strategic risk of loss of business to those banks who do not respond in time, to this new technology, being the efficient and cost effective delivery
5. A new form of competition has emerged both from the existing players and new players of the market who are not strictly banks.

History

The precursor for the modern home online banking services were the distance banking services over electronic media from the early ’80s. The term online became popular in the late ’80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. ‘Home banking’ can also refer to the use of a numeric keypad to send tones down a phone line with instructions to the bank. Online services started in New York in 1981 when four of the city’s major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services using the videotex system. Because of the commercial failure of videotex these banking services never became popular except in France where the use of videotex (Minitel) was subsidized by the telecom provider and the UK, where the Prestel system was used. The UK’s first home online banking services was set up by the Nottingham Building Society (NBS) in 1983 (“History of the Nottingham”. http://www.thenottingham.com/main.asp?p=1710 (Retrieved 2007-12-14). The system used was based on the UK’s Prestel system and used a computer, such as the BBC Micro, or keyboard (Tandata Td1400) connected to the telephone system and television set. The system (known as ‘Homelink’) allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank transfers and bill payments, a written instruction giving details of the intended recipient had to be sent to the NBS who set the details up on the Home link system. Typical recipients were gas, electricity and telephone companies and accounts with other banks. Details of payments to be made were input into the NBS system by the account holder via Prestel. A cheque was then sent by NBS to the payee and an advice giving details of the payment was sent to the account holder. BACS was later used to transfer the payment directly. Stanford Federal Credit Union was the first financial institution to offer online internet banking services to all of its members in Oct, 1994. Today, many banks are internet only banks. Unlike their predecessors, these internet only banks do not maintain brick and mortar bank branches. Instead, they typically differentiate themselves by offering better interest rates and online banking features.

Advantages of online banking

• Convenience:Unlike your corner bank, online banking sites never close; they’re available 24 hours a day, seven days a week and they’re only a mouse click away.
• Ubiquity:If you’re out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business, 24/7.
• Transaction speed:Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds.
• Efficiency:You can access and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site.
• Effectiveness:Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage all of your assets more effectively. Most are also compatible with money managing programs such as Quicken and Microsoft Money.

Disadvantages of online banking

• Start-up may take time: In order to register for your bank’s online program, you will probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to view and manage your assets together online, one of you may have to sign adorable power of attorney before the bank will display all of your holdings together.
• Learning curve:Banking sites can be difficult to navigate at first. Plan to invest sometime and/or read the tutorials in order to become comfortable in your virtual lobby.
• Bank site changes: Even the largest banks periodically upgrade their online programs, adding new features in unfamiliar places. In some cases, you may have to re-enter account information.

Require equipment for Online Banking

In order to use online banking, you need a computer (in this Agreement, your computer and the related equipment are referred to together as your “Computer”) with a web browser (either Netscape Navigator 4.0 or higher, Microsoft Internet Explorer 4.0 or higher), a member number, and an online banking PIN. The PIN is the confidential personal identification number you use to access your account(s) through online banking. You are responsible for the installation, maintenance, and operation of your Computer, browser and the software. Solidarity Community Federal Credit Union is not responsible for any errors or failures from any malfunction of your Computer, the browser or the software. Solidarity Community Federal Credit Union is also not responsible for any Computer virus or related problems that may be associated with the use of an online system.

Features of Online Banking

Online banking solutions have many features and capabilities in common, but traditionally also have some that are application specific. The common features fall broadly into several categories

• Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer… and applications… apply for a loan, new account, etc.)
• Electronic bill presentment and payment – EBPP
• Funds transfer between a customer’s own checkingand savings accounts, or to another customer’s account
• Investment purchase or sale
• Loan applications and transactions, such as repayments
• Non-transactional (e.g., online statements, check links, co browsing, chat)
• Bank statements
• Financial Institution Administration
• Support of multiple users having varying levels of authority
• Transaction approval process
• Wire transfer

Financial Institution Administration – features allowing the financial institution to manage the online experience of their end users ASP/Hosting Administration – features allowing the hosting company to administer the solution across financial institutions.

Different Types of Online Banking Services of Dhaka Bank Limited

Phone Banking

Dhaka Bank is focused on delivering exceptional services to its customers that would strengthen the relationship and build Loyalty. To make banking experience quick, efficient, secure and easy, Dhaka Bank of Bangladesh now offer its customers 24/7 Phone Banking Services.
Dhaka phone banking provides its customer immense comport.

In addition, Dhaka Bank customers can also avail a host of services through automated Dhaka Phone Banking (IVR/Self Service Banking) that lets them use their telephone keypad to inquire about their financial balance/transactions.

Dhaka Phone Banking Services

Dial – 0800-22522 to get absolute Banking freedom

Branch Banking

Inquiry

• A/C balance
• Statement details
• Product information

Transactions

• Cheque book request
• TPIN issuance & re-issuance
• ATM PIN issuance & re-issuance
• PO/DD & Bank certificate
• Funds transfer

Mobile Banking

Mobile banking (also known as M-Banking, E-banking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking today (2007) is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device.

SMS Banking

SMS banking is a technology-enabled service offering from Dhaka banks to its customers, permitting them to operate selected banking services over their mobile phones using SMS messaging.

Internet Banking

Dhaka bank financial services accessed via the Internet’s World Wide Web. An Internet bank exists only on the Internet, the global network of computer networks without any “brick and mortar” branch offices. By eliminating the overhead expenses of conventional banks, Internet banks theoretically can pay consumers higher interest rates on savings than the national average. Banks use the Internet to deliver information about financial services, replace transactions done in branch offices, which eliminates the need to build new branches, and to service customers more efficiently. Internet banking sites offer the prospect of more convenient ways to manage personal finances, and such services as paying bills on-line, finding mortgage or auto loans, applying for credit cards, and locating the nearest ATM or branch office. Some Internet banks also offer 24-hour telephone support, so customers can discuss their needs with bank service representatives directly.

Telephone Banking:

Telephone banking was a service provided by a financial institution which allows its customers to perform transactions over the telephone. Most telephone banking uses an automated phone answering system with phone keypad response or voice recognition capability. To guarantee security, the customer must first authenticate  through a numeric or verbal password or through security questions asked by a live representative. With the obvious exception of cash withdrawals and deposits, it offers virtually all the features of an automated teller machine: account balance information and list of latest transactions, electronic bill payments, funds transfers between a customer’s accounts, etc. Usually, customers can also speak to a live representative located in a call centre or a branch, although this feature is not guaranteed to be offered 24/7. In addition to the self- service transactions listed earlier, telephone banking representatives are usually trained to do what was traditionally available only at the branch: loan applications, investment purchases and redemptions, check book orders, debit card replacements, change of address, etc. Dhaka Banks which operate mostly or exclusively by telephone are known as phone banks.

TV Banking

Dhaka Bank, they’ve introduced world to an all new way of banking. TV Banking. This pioneering initiative now enables you to get information regarding loans, accounts, deposits and a lot more while you’re watching that exciting cricket match or your favorite sitcom. Quite certainly, TV Banking has revolutionized banking by bringing it right into your living room.

Retail Banking

The Retail banking application is an integration of several functional areas, and enables customers to:

• Issue Demand Drafts online
• Transfer funds to own and third party accounts
• Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature
• Generate account statements
• Setup Standing Instructions
• Configure profile settings
• Use E-Tax for online tax payment
• Use E-Pay for automatic bill payments
• Interface with merchants for railway and airline reservations
• Avail DEMAT and IPO services

Corporate Banking

The Online DBI corporate banking application provides features to administer and manage corporate accounts online. The corporate module provides roles such as Regulator, Admin, Uploaded, Transaction Maker, Authorizer, and Auditor. These roles have access to the following functions:

• Manage users; define rights and transaction rules on corporate accounts.
• Access accounts in several branches with a single sign-on mechanism.
• Upload files to make bulk transactions to third parties, supplier, vendor and tax collection authorities.
• Use online transactional features such as fund transfer to own accounts, third party payments, and draft issues.
• Make bill payments over the Internet.
• Authorize, modify, reschedule and cancel transactions, based on rights assigned to the user.
• Generate account statement.
• Enquire on transaction details or current balance.

E-Ticking

You can book your railway, air and bus tickets online through Online DBI.
To book your train ticket, just log on to irctc.co.in and create an ID there at if you do not have one. Submit your travel plan and book the ticket(s)-either

• I-ticket (where the delivery of tickets will be made at your address) or
• E-tickets (wherein after successful payment transactions, an e-ticket is generated which can be printed any time. For an e-ticket, the details of photo identity card will required to be filled in)

And select Dhaka Bank of Bangladesh in the payment options. You will be redirected to Internet Banking site of DBI (www.onlinesbi.com). After submitting the respective ID and password, you can select your account. After a successful debit, Railways will generate the ticket. E-ticket can be printed by you whereas I-ticket will be dispatched by IRCTC at the given address. Service charges @ Rs.10/- per transaction shall be levied in addition to the cost of the ticket. Cancellation of E-ticket can be done by logging on to IRCTC’s site; refund amount will be credited to your account directly within 2-3 days. You can also book your Air ticket through the e-ticketing feature. Logon to Indian Airlines website to make a payment for an e-ticket through Dhaka Bank of Bangladesh, you need to select DBI as the payment option. The payment request will be redirected to Internet Banking site. The request may be processed based on values sent from the airlines website. Once a transaction is processed, an appropriate response will be sent to airlines site to update the status of the transaction. You can print the E-ticket immediately.

To book bus tickets to destinations in Karnataka, log on to the KSRTC website. Provide details about the start and end points of your journey, date of journey and number of tickets. Verify availability of seats on the selected date and confirm the transaction. Select Online DBI to make the payment. Provide your credentials and select the SBI account that will be debited for the payment. You are provided a KSRTC reference number for your e-Ticket.

Bill Payment

A simple and convenient service for viewing and paying your bills online.

• No more late payments
• No more queues
• No more hassles of depositing cheques

Using the bill payment you can ‘view and Pay various bills online, directly from your DBI account. You can pay telephone, electricity, insurance, credit cards and other bills from the comfort of your house or office, 24 hours a day, 365 days a year. Simply logon to http://www.onlinesbi.com/ with your credentials and register the biller to which you want to pay, with all the bill details. Once the bill is uploaded by the biller, you can make payment online.

You can also set up Auto Pay instructions with an upper limit to ensure that your bills are paid automatically whenever they are due. The upper limit ensures that only bills within the specified limit are paid automatically, thereby providing you complete control over these payments.

The e-PAY service is available in various cities across the country and you can now make payments to several billers in your region.

Fund Transfer

The Funds Transfer facility enables you to transfer funds within your accounts in the same branch or other branches. You can transfer aggregating Rs.1 lakh per day to own accounts in the same branch and other branches. To make a funds transfer, you should be an active Internet Banking user with transaction rights. Funds transfer to PPF account is restricted to the same branch.

Just log on to retail section of the Internet Banking site with your credentials and select the Funds Transfer link under Payments/Transfers tab. You can see all your online debit and credit accounts. Select the debit account from which you wish to transfer funds and the credit account into which the amount is to be credited. Enter the amount and remarks. The remarks will be displayed in your accounts statement for this transaction. You will be displayed the last five funds transfer operations on your accounts. On confirming the transaction, you will be displayed a confirmation page with the details of the transaction and the option to submit or cancel the funds transfer request. A reference number will be generated for your record.

Online Clearing

Online clearing takes place when a cheque is drawn by a Non-Dhaka Bank customer in favor of a Dhaka Bank customer but is deposited at Dhaka Bank. The person, who had drawn this cheque, however should have an account in the Islamabad/Rawalpindi area. The process for online clearing is as follows:

• The cheque is sent as an outward clearing via NIFT
• When the cheque is cleared, it is credited to the Dhaka Bank account via the online transfer software.

Demand Draft

The Internet Banking application enables you to register demand drafts requests online. You can get a demand draft from any of your Accounts (Savings Bank, Current Account, Cash Credit or Overdraft). You can set limits for demand drafts issued from your accounts or use the bank specified limit for demand drafts.
You can opt to collect the draft in person at your branch, quoting a reference to the transaction. A printed advice can also be obtained from the site for your record.

Alternatively, you may request the branch to courier it to your registered address, and the courier charges will be recovered from you. If you have any queries, kindly approach your branch, quoting the reference number generated for the request.

Others Services provided by Online Banking (Dhaka Bank)

No need of walking up to the Dhaka bank branch, every time you need to do your banking. As you can do a lot of it online. From paying your bills to transferring funds, booking your rail/air tickets, shopping, sending a money order and doing lots more.

• Bill Payment: Skip the long queues; pay your utility bills anytime, anywhere.
• Ticket Booking: Book your rail tickets online or by SMS: in a quick and hassle-free way.
• Funds Transfer: Transfer funds instantly between your ICICI Bank accounts and non-ICICI Bank accounts.
• Special Promotions & Offers: Make most of the online offers created exclusively for ICICI Bank customers.

Most of the online banks have the equivalence in the services. Considering the services of banks given, we can show the view of services offered based on the following forms given below

Security

• Providers of on-line financial services should provide sites that are secure.
  Secure sites should include the most effective existing protections such as passwords and encryption, and should be routinely reviewed and updated to ensure that new security features are added as they are developed.

• Financial services providers should be vigilant to expose imposters using their names or similar names to induce consumers to reveal personal financial information.
• Federal and state regulators should carefully scrutinize the operating practices, security and solvency standards, and privacy policies of both on-line providers of financial services and of third-party providers, contractors and subcontractors.
• Financial services entities should take responsibility to make the consumer whole for losses from computer crime not caused by the consumer; for security breaches; for failures and losses caused by third parties selected by the financial services entity or by its subcontractors; and for losses contributed to by the financial institution’s sharing of customer data internally, with an affiliate, or with a third party.
• Providers of on-line financial services should accept the responsibility to try to prevent, detect, and eradicate viruses and other security breaches. Viruses sometimes cannot be prevented, but some on-line banking contracts offered today attempt to eliminate all responsibility on the provider even to try to do so. Because a consumer’s ability to access funds needed for daily living can be affected by viruses and other security breaches, on-line financial services providers should accept more responsibility than is commonly accepted by web site providers of lower- cost, less financially sensitive products.

Access

• Dhaka Bank should take affirmative steps to make on-line banking services available in
  neighborhoods where access to on-line services is low. This may include providing access and training in community centers, housing projects, and urban high schools, as well as other creative approaches.
• On-line banking channels should not replace other channels that permit in-person activity unless and until there is clear evidence that all demographic groups (including age and income groups) are in fact being equally well served by on-line banking as by other bank channels, including brick and mortar branches.
• Dhaka Bank who provides special offers to Internet customers must also have an effective method to make those offers available to customers without access to the Internet.
• Dhaka Bank and insured financial services providers who accept deposits nationally should not restrict their Community Reinvestment Act areas to the physical location of their home offices.

Information and Disclosure

• Increases in fees and changes in material terms should be accompanied by at least 30 days advance notices. The notice should be sent by a means calculated to actually communicate the information to the customer. Posting information on the bank’s web site about new fees or changes in material terms is not sufficient.
• Providers of on-line financial services should make their contracts available before the customer must give personal financial information and should make those agreements available in a form which the customer can download, print, and retain in a manner that shows what the agreement was when the consumer entered into it.
• On-line bill payment services, whether or not associated with on-line banking, should clearly disclose on the screen which is used to schedule the payment the date and time that the payment will be sent and whether the payment will be sent electronically or by ordinary mail.
• On-line financial services providers should use the power of the electronic environment to facilitate more effective consumer disclosure and education.

Consumer Rights

• On-line banking services should meet the consumer protection and other statutory requirements and restrictions of the consumer’s home state.
• Disputes arising from on-line banking and bill payment should be resolved promptly, and should be at least as prompt as the voluntary timeframe of not more than five business days tore credit disputed funds which has been developed for debit cards.
• If an arbitration clause is used, it should permit the consumer to choose whether to agree to arbitration after the dispute arises, and should provide fair, cost-effective procedures for the consumer
• On-line bill payment services should not impose an earlier time for stop payments than the time the payment could be stopped if it were made by check.
• Financial services providers who use electronic mail to communicate with their customers should provide two-way convenience to the customer by treating emailed notices of disputes, stop notices, and similar documents required by law to be sent in writing in the same way as if those documents had been mailed.
• Customers wishing to close their accounts should be able to do so with an instantaneous electronic transfer of funds to another designated account.
• On-line banking contracts contain no provision presuming that a consumer is in receipt of information simply because the bank has sent or posted that information.

Changes brought in Information Technology by DBI

• In the next decade internet facility was provided for individuals.
• All DBI branches were connected and ATM’S were launched.
• 2001 – KMPG appointed consultant for preparing IT Plan for the Bank.
• Later on Core banking proposed by the IT consultancy company.
• 2002 – All branches computerized but on decentralized systems, there the initiative of core banking took place.
• 2008- more than 6500 branches (95% of business) on Core Banking Solution (CBS).
• Internet Banking facility for Corporate customers were also launched in early 2008.
• More Interfaces developed with e-Commerce & other sites through alternate channels like ATM & Online Banking.
• All Foreign Offices were brought on Centralized Solution.
• Large network is playing the role of backbone for connectivity across the country.
• Multiple Service Providers are providing the links – BSNL, MTNL, Reliance, Tata & reliance which are making the system errorless and provide high speed.
• Multiple Technologies to support the networking infrastructure – Leased lines, Dial-up, CDMA & VSAT.

Dhaka Bank Limited Network Design (LAN & WAN)

The Dhaka Bank network  is maintained and operated from the Network Operations Center (NOC) of the IT division as a Hub-Spoke network (Star network), where all traffic from spokes/nodes  route  through  the  central  hub  which  is  the  core  router  Cisco  3845.  For secured  connectivity  within  the  network,  Dhaka  Bank  uses  the  Cisco  4507R  as  the  core switch. Dhaka Bank uses the Cisco ASA 5520 firewall along with the implementation of an IP Access List, for better traffic security management.  For  monitoring  and  blocking  of unexpected  and  harmful  traffic  flow,  Cisco  Security  MARS  is  put  in  operation.  As for

Web request monitoring, McAfee Web Gateway comes in action. To ensure efficient and smooth   branch   connectivity,   the   bank   has   obtained   support   from   five   connectivity vendors who provide links to all branches of the bank from the head office Data Centre through optical fiber, radio link and VSAT. In this way, Dhaka Bank Limited is successful in providing a high-level of security for better online operations using reliable Cisco devices.

Network  implementation and configuration

Network implementation is the process of deploying a network by connecting necessary equipments following methodical processes like—

• Physical network design

This is the process of physically arranging the network in an organized manner to allow efficient performance.  It  is  of  two  types—  Local  Area  Network  (LAN)  and  Wide  Area Network (WAN) design

• Remote access provisions

Remote access refers to the method of providing services to a computer from a remote location. These services include—

• Remote administration
• Remote Boot/Shutdown
• Device access
• System modification
• Remote viewing

Configuration of network elements

Network configuration is the process of organizing and maintaining information about all the components of a computer network.  When  a  network  needs  repair,  modification, expansion  or  upgrading,  the  administrator  performs  necessary  network  configuration activities as a solution. Advantages of network configuration management include—

• Ensuring efficiency in maintenance, repair, expansion and up gradation of network
• Minimizing configuration errors.
• Minimizing downtime.
• Optimizing network security.
• Minimizing effects of configuration changes
• Restore previous configuration states in case of emergency
• Archiving the details of all network configuration changes

FINDINGS

The main vision of Dhaka Bank is to become a premier banking institution in Bangladesh. In achieving this mission, Dhaka Bank has been successful by increasing online banking service and its revenues, deposit facilities through online base and online branches connection in Bangladesh. Although there are no major problems on online banking at Dhaka Bank, some of the problems observed are as follows:

• Unavailability of ATM Booth: Our study recover that there is scarcity of ATM booth in all places. It creates high dissatisfaction in customer mind.
• Shortage of fund in ATM Booth: Most people complain that there is low money reserve in ATM Booth sometimes they find empty.
• High service charge: Online Banking charge is too high and it is still out of reach among the middle class and lower class family.
• Technological problem: There are some technological problem such as show empty of own account money, PIN code rejection, Database cannot be support in the system etc.
• Shortage of Branch: Branches are not available so especially business people face problems.
• Securities: Some people cannot rely on online banking. They feel less security on online Banking.
• User of online banking: User are low rather than other bank user on online banking
• Limited Areas: This bank provide online banking service in some specific areas.
• Training and Development: Employees are not well trained in online banking.

Recommendation

We know that Dhaka Bank limited is one of the famous commercial bank in Bangladesh. We find out from our survey they have providing good online services which is give satisfaction and interest for its clients/customers. They gave their clients electronic fund transfer facilities, ATM, Debit card, credit card, pos, bill pay facilities in online etc. But they have also some lacking in online banking process. For removing lacking, they should take following steps in the online banking system-

• Increase ATM booth: Spread ATM booth all over the country in important place.
• Increase booth cash fund: All time update booth case fund.
• Rises Credit card acceptance in all places.
• Increase customer awareness about online banking of Dhaka bank.
• Resolve technological problem by using latest technology.
• Making online banking facilities more easy and suitable for all classes of people.
• Online banking area spread all over the Bangladesh.
• Making Service charge of online banking as low as possible.
• Provide proper training about online banking to the employees.
• Training and awareness among employees:-

It is recommended that Dhaka Bank of Bangladesh should conduct various training programmes for the employees, so that they will get aware with the terms of internet banking. After such programmes they can create awareness amongst the consumers.

• Exchange of information on threats and vulnerabilities at appropriate forums:-

There should be an open end discussion on the threats and vulnerabilities coming across the functioning of internet banking work by the employees in the various official forums and meets.

• Build an optimal operating model by understanding which activities to retain collaborate and outsource:-

There should be clear sight of operations which needs to outsource to other companies, this will lead to ease in work for employees. Outsourcing operations like, cyber security department, building IT structure on internet.

• Bank should Create and sustain customer, investor and regulator confidence by adopting international accounting standards :-
• Adopting international standards adds some more star to the glory of any company, DBL should impose such standards when it comes to internet banking or virtual banking, this will enhance the goodwill of DBL among regulator, customers and invertors.
• Bank should anticipate and get prepared for regulatory changes:-

Laws regarding IT or cyber laws get change as per the need. DBL should anticipate such kind of changes and get loaded with various plans and actions.

• Focus on identifying core competence:-

DBI possess some unique characteristics or positive points in it and with the help of them it can become a leader in market. Bank should identify such points and concentrate to flourish them more. This can be done with the help of internet banking, as internet banking of DBL is getting largely accepted by customers.

• Increasing usage of mobile phones is going to revolutionize the banking culture in near future:-

Mobile banking is also getting popular in the segment of internet banking thus this can add some more steps to progress for DBL. Bank is into the mobile banking but it is providing limited features.

• More stress should be given on security concern on internet:-

There are some people who are into unethical practices of hacking of accounts of customers. This is nothing but the breach in the security of the DBL on internet. There should be some measures in order to prevent such practices. IT structure should be unbreakable.

Conclusion

Studying the project we came to know that Internet banking is clearly the way forward for the State Bank of India. It provides comfort to customers at the same time it provides cost cutting to DBI by eliminating physical documentation. Internet banking saves time of bank as well as those of customers.

Study states that internet banking provides greater reach to customers. Feedback can be obtained easily as internet is virtual in nature. Customer loyalty can be gain. Personal attention can be given by bank to customer also quality service can be served.

Bank should know that No system is perfect, however a system of such a type will need to be very secure. This is a system which holds account details and customers wealth. If such a system was not trusted and not reliable, then DBL would face serious laws and would lose business.

After studying the SWOC analysis, we came to know various strengths of DBL such as quality customer service, greater reach, customer loyalty, easy access to information, 24 hours access, easy online applications etc. DBL should put efforts to multiply the number of strengths. In terms of weakness I come to know some of the major weaknesses they are lack of awareness of internet banking among the customers, obsolesce of technology related to security, complicated procedures of availing internet banking facilities, lack of knowledge among the employees of DBI. DBI should concentrate on the weaknesses and reduce them to zero.

In the third segment of SWOC analysis of internet banking we dealt with opportunities like 95 % market of internet market is untapped, DBL’s path to become first virtual bank. By encasing such opportunities bank can become the leader in banking sector of Bangladesh. In the last segment I come to know about various challenges which are in front of DBL, like sameness in IT infrastructure within various banks, need of various vendor supports for complex technology, maintaining secured IT infrastructure, alternative mechanism in case of failure of present security system.

The company can take the advantage of the reputation it has created in the market for itself and become more competitive. The recommendations and suggestions given, if adopted will improve the position of the company substantially and optimal profitability coupled with better service and satisfactions for investors may be achieved.