April 02, 2020

Internet Banking/Electronic Banking/Online Banking/Net Banking/Mobile Banking/Virtual Banking

Internet Banking or Net Banking: Internet banking is an electronic Payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank,virtual bank,credit Union or building society. Internet banking also known as online banking or electronic banking or virtual banking etc. e-Banking or electronic banking means using alternate banking channels like ATMs,internet banking, phone banking, mobile banking etc. It also includes payment systems using electric clearing service, electronic funds transfer. Technology has touched every aspect of our lives. Right from the moment we wake up to the moment we go back to bed at night, technology surrounds us. Be it shopping for groceries, paying utility bills, learning to play a new instrument, finding a plumber, getting food delivered or anything else for that matter, technology offers a solution for almost everything we could possibly imagine.
Banking is definitely not a stranger to technology. Internet banking has made life simpler for millions and millions of people around the world. Especially in India, where a bank visit implies waiting in never-ending queues, online banking is definitely a blessing. Online banking has made it possible for customers to do simple tasks like accessing their savings account anytime, keep track of their account balance, get e-statements, pay bills online, shop online, transfer funds and much more in under a few clicks and within a matter of minutes.                                               To access a financial institution's online banking facility,a customer with internet access would need to register with the institution for the service and set up a password and other credentials for customer verification. The credentials for online banking is normally not the same as for telephone banking. Financial institutions now routinely allocate customers numbers, whether or not customers have indicated an intention to access their online banking facility. Customers' number are normally not the same as account numbers, because a number of customer accounts can be linked to the one customer number. The customer number can be linked to any accounts that the customer controls, such as cheque,credit cards, savings, loan and other accounts.                                      Online Banking:-
Online Banking, also known as net banking, e-banking or electronic banking, is the facility provided by banks and financial institutions which allows customers to use banking services via internet. There are scores of services like online money transfer, account opening, bill payment, tracking account activity, etc., which are made available to customers with the help of online banking. Online banking also allows banks to advertise their products and services in a manner that it reaches out millions of customers. However, in order to use online banking, an individual will require access to the internet, which is scarcely available in rural areas. Internet banking can also be accessed via mobile phones which have a data 3G/4G connection. The introduction of core banking solutions has made possible banking through different channels. One of them is banking using the internet or online banking as it is known. It is possible by the bank after registering with it. Most of the basic services are available on a 24x7 basis.                         Mobile Banking:-
Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a client's cell phone or as complex as a client paying bills or sending money abroad. Advantages to mobile banking include the ability to bank anywhere and at any time. Disadvantages include security concerns and a limited range of capabilities when compared to banking in person or on a computer.
It means undertaking banking transactions using mobile phones by bank customers for credit or debit of their accounts. It also includes checking of banks accounts for balance enquiry etc. Mobile banking is a means to enlarge the customers base of banks since a very large portion of the population possesses mobile phones. Customers need to register with their banks using this facility for getting their security controls. Reserve bank of India wants banks to popularize this facility for the penetration of banking services in the country                                  Retail Banking:- Banking Business Which primarily caters to the average individual like offering deposit accounts and loans like personal ,car and housing come under retail banking.                                     Offshore Banking:- offshore banking denotes branch of an Indian bank which is located in a special economic zone away from the location of the customer. This is primarily meant to encourage exports from particular zone with a specified set of rules and regulations.                     Green Investment Banking:- It is basically an investment where banks focus on environment friendly projects. This is a new concept in view of emphasis on the protection of the environment.                                       Home Banking: This facility offered by financial industries to their customer the practice of conducting banking transaction from home itself rather than at Banks Branches.            Virtual Banking:- virtual bank is a bank with a very small or nonexistent branch Network. It of its financial services through various channels like- mobile banking, Mail Banking, Online Banking, Telephone banking, ATMs etc. By eliminating the cost associated with retail banking particularly bank branches. Virtual bank may offers higher interest rates and lower services charges on their saving Accounts than their competitors.                                   Brick and Mortar Banking: with the introduction of technology in banking services the delivery models of banks have undergone changes. To differentiate traditional banking from the modern channels,traditional branch type banking is known as brick and mortar  banking.                    Advantages of Net Banking:-
(1) Easy To Operate:– Online banking is very simple and easy to understand, maybe easier than conventional banking in many cases. Operation of an online account is rather simple and easy to use.
(2) Convenience Of Making Payments:– Internet banking makes it quite convenient to carry out transactional activities like transfer of funds, payment of bills, etc. this means, no longer having to wait in queues for bill payments or having to safely keep receipts of bill payments, which are also perishable. All record of payments and bills is stored online on your account.
(3) Round The Clock Availability:– Another indisputable advantage about online banking is that it is available round the clock, throughout the year. You don't have to schedule a time when you can carry out banking activities, regardless of it being a weekend, time of the day or even holidays.
(4) Account Activity Tracking:– Another very important benefit provided by net banking is that it allows you to track your account activity at all times. You can keep an eye on your account transactions and balance at all times. Any unauthorized transaction or discrepancy can be immediately tracked and reported to the bank immediately, allowing you to keep your money safe at all times.
(5) Time Saving and Efficient: E-banking in not only fast but also highly efficient in letting you carry out transactions within a few minutes. Transfer of funds, account opening, bill payments take no more than a few minutes to process, which helps save a lot of time.
Disadvantages of Net Banking:-
(1) May Be Complicated For Beginners To Understand:– For those who are new to the world of banking, online banking may pose as slight challenge in terms of usage. While some banks do provide demos on their websites regarding the use of online banking, there are many banks which don't do that. In the latter case, an inexperienced user may be left to fend for him/herself.
(2) No Online Banking Without Internet Access:– In order to use online banking, one needs to have a stable internet connectivity or access. Without one, the facility of online banking is of no use. Also, if the bank servers are down, you will be unable to access your account online to carry out transactions.
(3) Transaction Security:– One of the main reasons which still keeps a lot of customers from using internet banking is the safety of transactions. While all major and recognized banks will have a powerful security encryption in place for ensuring the safety of customer's transactions, there have been instances where transaction details have been compromised. Though it is uncommon, but still can pose as a major threat.                                       (4) Securing Your Password:– When it comes to internet banking, account passwords are of crucial importance. For that reason, it is absolutely necessary that a user must never reveal their account password to anyone. The ideal thing to do would be to memorize the password and also keep changing the same frequently, to eliminate any chance of password theft.

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