International Journal of Research in Economics and Social Sciences(IJRESS) Available online at :http://euroasiapub.org/current.php?title=IJRESS Vol. 6 Issue 8, August , 2016, pp. 53~64 ISSN(o): 2249-7382 | Impact Factor: 6.225 , | Thomson Reuters ID: L-5236-2015 International Journal of Research in Economics & Social Sciences Email:- editorijrim@gmail.com, http://www.euroasiapub.org (An open access scholarly, online, peer-reviewed, interdisciplinary, monthly, and fully refereed journals.) 53 ANALYSIS OF LIQUIDITY RISK IN E-BANKING Dr. Sultan Singh* Sarthak Singh** Keywords Abstract Redemption, Widespread, Withdrawal, Monitoring In this study, an attempt is made to analyze the bankers’ viewpoint towards the factors responsible for liquidity risk in e-banking, its impacts on the functioning of the banks and the measures for overcoming the risk by the selected public, private and foreign banks in India. A sample of 107, 104 and 100 bank employees is taken on the basis of judgement sampling from different branches of selected public, private and foreign banks respectively located in Haryana, Punjab, Chandigarh and Delhi. The primary data are collected with the help of pre-tested structured questionnaire on five point Likert Scale i.e. Strongly Disagree (SD), Disagree (A), Neutral (N), Agree (A), and Strongly Agree (SA). For coding and analyzing the data, weights are assigned in order of importance i.e. 1 to Strongly Disagree (SD), 2 to Disagree (D), 3 to Neutral, 4 to Agree (A) and 5 to Strongly Agree (SA). Statistical techniques such as mean, mode, standard deviation have been used for the analysis of data. ANOVA technique has been applied to test the hypotheses and validate the results of the study. The analysis shows that sudden increase in demand for redemption of electronic money is considered as the most important factor leading to the liquidity risk in selected banks. Further, bank may incur losses as it seeks to generate more costly sources of funds, more widespread withdrawal of deposits, failure to meet redemption of demands in a timely manner are found significant impacts of liquidity risk on the functioning of the selected public, private and foreign banks respectively. However, investment of funds in liquid assets followed by developing a monitoring system on usage are viewed as the most adopting risk management measures in the selected banks. 2395-7492© Copyright 2016 The Author. Published by International Journal of Economics And Social Science. This is an open access article under the All rights reserved. Author Correspondence Dr. Sultan Singh* Department of Business Administration ,Chaudhary Devi Lal University, Sirsa-12505, Haryana (India)*