The Government of India is undergoing financial reforms to make the banking services sector more robust by adopting the use of technology. As of June 2018, there are a total of 512.26 million service area-wise Internet subscribers in India of which 338.84 million are from the urban areas and 173.42 million are from rural India1. In light of the above facts, the Indian consumers are increasingly encouraged to adopt and use the internet to search, buy and recommend banking products and services. In the last few years, extensive research has been conducted to test the implementation of technology and its adoption by the customers. The present study explores the variables that influence the usage of online versus offline banking usage behaviour in the Indian context and examines the application of TAM model. The results revealed that gender, income and age are the most influential factors defining the online banking behaviour of a peculiar Indian customer. The study also showed that, predominantly, the Indian online banking user tends to be a male in the middle-age and middle income category. This study may assist the Indian bankers in segmenting and targeting their customers more effectively depending on their usage behaviour.
Keywords: online banking, offline banking, multinomial logistic regression, banking usage behaviour