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SUMMER INTERNSHIP PROJECT REPORT
ON
“E- Payment: Digitization effect on
Consumer Policy “
MASTER OF BUSINESS ADMINISTRATION
BUISNESS MANAGEMENT
H.N.B.G.U (2020-22)
( M.B.A – 3 SEMESTER )
Submitted To :- Submitted by :-
Dr. Pradeep Mamgain Shubham Rawat
( Assistant Professor ) Roll no. - 20134706043
PREFACE
In the present fast moving days, only theoretical knowledge is not sufficient for an individual
to perform efficiently to theory and practical. The students required to undergo 3 months training in any organization in subjects like Marketing, finance, human resource or information technology. Summer internship program is a prelude to the final placements that the students will be getting. It is during these 3 month of exposure to the industry that the students can make a mark of challenging work, knowledge and ethics on the host organization. Summer internship program would also be a great learning experience since it enables the students to apply theory to practice and observe and learn the current trends in the market. So, to have a practical exposure, I have been placed on for my summer internship program as digitisation effect of e-payment in rural sector and retail sector in it. I, Shubham Rawat , a student of second semester M.B.A, HEMVATI NANDAN BAHUGUNA GARHWAL UNIVERSITY , Srinagar Garhwal did my project work in on the topic of “Digitization effect of e-payment in rural sector and retail sector.
DECLARATION
I, Subham Rawat a student of MBA high by declare that the project work
presented in this Report is my own work & has been carried out under the
supervision of Doctor Pradeep Mamgain of Hemvati Nandan Bahuguna
Garhwal University.
I also declare that this Summer Internship Project is the outcome of my own
efforts and that it has not been submitted to any other university or Institute for
the award of any other degree or Diploma or Certificate.
DATE : Signature :
Place : Chauras
(MBA Department H.N.B.G.U)
Executive Summary
MBA is a stepping-stone to the management carrier and to develop good
manager it is necessary that the theoretical must be supplemented with exposure
to the real environment. Theoretical knowledge just provides the base and it’s
not sufficient to produce a good Manager that’ s why practical knowledge is
needed.
In accordance with the requirement of MBA course I had summer training project
in e-payment on the topic “digitization effect on rural sector and retail sector in
it.”
The retail banking environment has undergone major change. Retail banking
customers are much more active than they were a decade ago. Customers are
demanding more customized products and services. This has imposed significant
new demands on retail banks. With a view to attaining an increasingly significant
position in the growing retail financial services sector in the country, banks have
continued to provide a sustained thrust to retail banking through a continuously
expanding network and a growing sales force with customer relationship skills,
that has enabled the distribution of a wide range of products to a fast expanding
customer base.
The report gives an overview of the digitization effect on rural sector, the Security
measure of the bank like all the e-payment, guidelines by RBI, Negotiable
Instruments ACT, recently launched government schemes, etc.
Chapter. 4. Digitization effect^ in
retail sector.
4.1. Introduction.
4.2. Analysis.
4.3. Digital Farming.
Chapter. 5. Research
Methodology
5.1. Introduction.
5.2. Need.
5.3. Objective.
5.4. Limitation.
5.5. Sampling^ Design.
Chapter.6. Data Analysis and
Interpretation.
6.1. Data Analysis.
6.2. Outcome of data
interpretation.
6.3. Hypothesis testing.
Chapter .7. Findings.^ 72
Chapter.8. Conclusion.^ 73
Chapter.9. List of Abbreviations.^ 74
Chapter. 10. Bibliography and
Conclusions.
CH- 1. E-PAYMENT:
1.1. Introduction : -
The swapping of products and services which is bilateral was initiated prior to recorded chronicles; however as the interchanges of products among individuals became more complicated, value of products and services are equated in a conceptual manner, which was initiated through the barter system, and went across a continuum from authorised money, to payment orders, to the various cards inclusive of debit or credit cards, and the prevalent method of payment done electronically or through an electronic payment gateway. The conventional technique of payment encounters particulars problems such as falsified signatures, counterfeit money, and cheques that could not be honoured. Nevertheless, an e-payment system that is meticulously organized may resolve these security concerns and offer an added benefit such as flexibility in utilization. This mode of payment has been well received and recommended as the result of their capabilities of expediting interchanges of currency, security assurance, and swiftness of accessibility to means of securing wealth. The reduced volume of transactions in terms of financial values had inversely increased the cost of supporting the system by the scale of the economy, thus payment methods by means of cash had become costlier. On the other hand, certain problems had cropped up during the on-going transactions that involve cash that was channelled through the internet of which the conventional techniques of payment are not able to resolve. Due to this, specialists in the field of finance have initiated an investigation of variant techniques of electronic payment that focus on the concerns pertaining to payment methods in the digital and electronic forms. Every individual proceeding goes through procedures via the payment passageways that acts as the point of entry into various financial entities. Precise information with regards to the payment that was undertaken between distinctive entities and establishments dealing with financial matters is verified via the respective gateways of payment.
1.2. E-payment system :
Electronic Payment Systems are defined by the multitudinous modes of payment that is executed electronically. It is multi-functional attributes have been inaccurately described in literature at times. Pertaining to capacities. Electronic payment can function as electronic banking, electronic cash, banking via internet, online banking and many others. Taking all of
Machine (ATM) card. Users of the debit card are enabled to make immediate payment for products bought via the bank. Money is secured in banks and will be withdrawn only when the users of the Debit Card makes any purchases through its use.
➢ Smart card - Smart card that is made of plastic and embedded with a
microchip, with information such as the amount of money, information of an individual and can be pre-loaded, with the ability to execute immediate payments is called a smart card or known as a chip card. The user is provided with a validated PIN by the service provider.
➢ Credit card - Credit card is circulated to customers by financial institutions
to execute payments via online means. It is the prevalently utilized e-payment system. ➢ However, it is not suitably used for making payments with petty via. It is the prevalently utilized e-payment system. However, it is not suitably used for making payments with petty value.
1.3. Security of E-payment system :-
Security in terms of data and information is of the utmost importance in the entire information systems. Security of data assurance that encompass the methods, practices, and technology involved.
❖ Unintentional modifications or transformations (integrity)
– System integrity is defined as its preciseness, credibility, and wholeness that are
grounded on the quality of businesses and aspirations. This means that a customer will only be charged upon the client’s affirmed consent. Moreover, without the client’s approval of any payment, it is obligatory that sellers are denied acceptance of any payment.
❖ Unauthorised accessibility (confidentiality) - It is established as the protection of confidential data from unapproved disclosure. Several establishments have made confidentiality an integral element of their proceedings. Within this scenario, confidentiality implicates the covert nature of the information pertaining to whatsoever type of proceedings. Generally, the concerns of customers are towards the protection of their proceedings. If a situation arises for the necessity for obscurity and secrecy, only a specific group of people will receive particular information. ❖ Demand-based ease of accessibility for authorised customers (availability) – It ensures that the information frameworks and data are there when required; it needs a constant and efficient framework transmission time. The entire system with all its elements should be in a state of constant readiness for the transmission or receiving of payments as and when required. ❖ Information security :- ➢ The utilization of the internet has transformed electronic payment, however, open mode of transmission has presented certain problems such as ensuring secured data. ➢ A method of scrambling data that makes it uninteresting to an authorized intrusion is known as cryptography or data encryption. ➢ However, at times, encrypting electronic payment data can be complicated. Hence, an undetected method of transmission that hides the presence of covert data is essential. ➢ Due to this, a technique that hides data is needed. In concealing data, there are two parts; steganography and watermarking.
CH – 2. Digitization :
2.1. Introduction :-
India’s economy is growing at a very fast rate. Initially, India is basically known for agricultural activities but, now picture is completely changed. In a last decade of years, India has faced the continuous innovations and information and communication technologies revolution. India has witnessed an annual growth of 18% in the number of internet users in 2018 and expected to grow by 11% in 2019. Smart phone market has a high potential growth in India. People are using smart phones for conducting their day to day work. People are using internet through their smart phone which is a main reason of development of M-commerce in India. India has different urban areas and rural areas. The majority of the population is living in the rural areas. This revolution of information and communication technologies has created a division between urban areas and rural areas. After inclusion of 4G and 3G networks, the Indian internet user’s base is increased and it is expected to double to 600 million users by 2020 from 343 million users at present. The adoption of data-enabled devices is expected to increase with the BharatNet initiative under Digital India.
Abstraction - Digital revolution has created numerous opportunities in India. Internet
penetration rate is very high in India which in turn has created the requirement of making India digitally active. Indian government is working on crucial projects like Smart City, Make in India and Digital India. India as a country includes urban areas and rural areas. The standard of living, education level, internet self-efficacy level, adoption of new technology level, economic growth level are drastically different in urban areas and rural areas. People from urban areas are updated with the new technology, they are able to use internet properly for different online activities. They are comfortable with the online transaction process and they can easily transfer the fund through internet banking.
2.2. GOI (Government of India) : Impact of Digitization in rural sector :- The Government of India specially working for making rural India digital literate. The Government of India launched different schemes for making strong base for farmers so that farmers of India can get the benefit of digital world in their farming business. The rural India has various panchayat. It is important to provide high speed internet connectivity to all panchayat so that all rural areas of India can have high speed internet connectivity. The Government of India is working very hard in this regards and introduces schemes for making rural India more digitally active. For increasing the efficiency of the public sector, government of India launched a “Digital India Programme”. The objective of this programme includes arrangements of high speed internet, citizens of India should be available on cloud, financial transactions should be electronics or cash less, citizens should be digital literate, availability of digital resources in Indian languages and public sector or government departments should be digitally active so that people can submit their government documents/certificates through online mode (Ministry of electronics & information technology, Government of India). 2.3. Digitization in rural sector :- Under the digital India initiative, the most crucial plan on which Government of India is working is “Digital Village”. Under this plan, selected villages will transform to digital active village, less cash village so that rural people can perform their most of the activities through online mode only. The main objective of Digital Village scheme is to make village digital active. Under this scheme, the work of different local institute of rural areas can be processed through internet only :-
- every rural person will become digital literate. Rural India is an important part of the country’s economy and contributes about 46% of the national income.
2.4. Schemes on digitization in rural sector :- ❖ Services - The main goal of the Digitization Village programme is to support techno economic viability of digital technology, introduce the projects for efficient applications in village areas and capacity building activities on information technology systems. CSC e-Governance Service India ltd. has started working for this Digitization schemes in rural sector. ❖ Solar power - Installation of solar panel powered street light in the villages. ❖ Education Schemes – Basic computer courses (BCC) providing in different villages.
❖ Digitization in health services - Villagers can seek the doctor’s advice at digital village centres.
- Veterinary tele-communication centres are also provided in the villages so that villagers can come with their cattle/pet in the CSC centre (Common service centre).
- Here doctor connected with the cattle owner through video conferencing and medicine are prescribed by the doctors through video conferencing only and prescribed medicines are easily available in the centres. ❖ Skill services - Rural India is trained for executing the automotive service technician (two wheelers) like mechanic, vehicle technician, automotive mechanic, repair and maintenance service technician.
- These technicians are responsible for repairing and servicing of two wheeler vehicles. Different skill trainings are giving to the rural India to make them skill full for the job.
- Trainings are given for adding the knowledge for different skills like handset repairing, automotive service technician and field technician to the rural India. 2.5. Application for the digitization in rural sector :- Government of India to uplift the financial connectivity of the rural India with the digital world. The main objective of this scheme is to connect every house in India with the bank.
➢ Akodara village is located in Sabarkantha district of Gujarat. This village
is known as “Digital Village” on 2, January, 2015. Akodara is known as
➢ There is another village where this Digitization Village scheme is
implemented in a proper manner. Dhasai village located in Thane district
of Maharashtra are on the way to become Digitization Village.
- The Swatantryaveer Savarkar Rashtriya Smarak (Mumbai based NGO) worked very hard for this village.
- This NGO contacted Bank of Baroda with a request to provide facilities to the Dhasai village.
- People of this village have to cover long distance to deposit cash in the banks.
- The bank has provided swiping machines in the village and installation security deposit was not taken from the traders.
➢ There are different companies who are also working for developing the
rural India.
- Cisco and BT have established Life lines India. This is a telephone-based help line. This helpline provides advice and guidance to rural India about farming.
- Farmers call on this helpline and discuss the problem related to farming, cattle, crop, cow etc. and experts are giving advice to the farmers.
➢ Under the e-governance plan – agriculture (NeGP-A), different facilities of
e-services were provided to the farmers.
- These e-services include internet, mass media, common service centres, kisan call centres and integrated platforms.
- This project designed and developed within the Department of Agriculture & Cooperation so that services can be provided to the farmers directly through their mobile only.
- Kisan call centres received number of calls from the farmers and they were asked specific information regarding the farming. SMS portal services also provided to the farmers.
- Farmers can send SMS for getting the specific information regarding farming, cattle and their pets in their languages. 2.6. Future Implication of Digitization in rural sector :-
➢ The Government of India worked hard for digitization India programme.
Under this programme, Digitization Village scheme launched by Prime
Minister of India Narendra Modi for making digitalized rural India.
- The ministry of electronics and information technology worked with CSC E-Governance Services India Limited for making this scheme successful.
- CSC SPV selected six villages as a pilot under the Digitization Village Campaign where the objective is to provide e-governance services to the rural India.
- CSC centres were created to facilitate the e-governance services for the villagers.
- After seeing the success of Digitization Village campaign in initial stage, the Government of India will scale up the “Digital village project‟.
- The government of India is planning to expand the DigiGaon in more than 1000 villages in coming future after lockdown.
