Reasons for Non-Adoption of Internet Banking: A Study with Reference to Vellore District of Tamil Nadu, India

  •  J Ramola Premalatha    
  •  N Sundaram    


The fundamental commotion of twenty first century verve of ‘banking’ is transformed by the perception called Internet banking or online banking. Internet banking is accomplished by means of a personal computer or any itinerant piece of equipment presenting internet connection. All the banks in India offer Internet banking with a nexus of transactions in addition to an informational source. In spite of scores of incentives, there are certain issues affecting its practice. It is realized that there are a number of psychological and behavioral aspects persuading the acceptance of any new advancement such as Internet banking. It comprises of clientele understanding, availability, safety measures, user-friendliness, techno phobia or lack of enthusiasm to alter, penchant for tailored services and outlay of espousing the new advancements. This study is conducted to find out the barriers in utilizing the services offered by the banks through internet. The study also helps in understanding the opinion of the clientele on the banking through internet offered by their banks as well.This research paid an attention through exploratory method to recognize the issues acting as difficulties in the practice of the banking services offered through internet and rework the acuity of clientele on banking through technology. The sample clientele are the ones having account in private sector banks, without using internet banking services. A factor analysis test was conducted for the primary data to analyze. Though there are many advantages in using internet banking the barricades in practicing it by the clientele residing in the semi urban areas are cost, lack of infrastructure, traditional banking, unfriendly web site, not aware and reluctance to change.

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