PATTERNS AND PROBLEMS OF E-BANKING USAGE: AN EMPIRICAL STUDY IN SELECTED URBAN CITIES OF GUJARAT

Abstract

The rapid advancement of digital technology has transformed the Indian banking sector, leading to increased adoption of e-banking services among customers. This study examines the utilization patterns and accessibility of e-banking services among 640 respondents from four major urban cities of Gujarat, covering users of both public and private sector banks. The analysis focuses on customers’ usage frequency across eight major e-banking services—mobile recharge, telephone bill payments, electricity bill payments, money transfer, rail ticket booking, air ticket booking, online shopping, and investment activities—over the past three months. Additionally, respondents’ number of bank accounts, access to online services, mode of access, and perceived security of online transactions are evaluated. Findings reveal that mobile recharge, electricity bill payments, money transfer, and online shopping are the most frequently used services, while telephone and air ticket payments record low usage due to limited need or lack of awareness. Private sector bank customers demonstrate higher adoption of online services compared to public sector banks. A considerable proportion of users access e-banking through mobile devices, indicating a strong shift toward mobile-based transactions. Despite increasing usage, concerns regarding online security persist, with 30.15% respondents perceiving e-banking as insecure. The study highlights positive adoption trends; however, greater awareness, enhanced security frameworks, and improved service quality are recommended to increase customer confidence and maximize digital financial inclusion.