story of E-Banking

                                                                      E-Banking 

        E- banking refers to electronic banking. It is like e-business in banking industry. E-banking is also called as virtual banking or online banking. E-banking is a Result of the growing expectations of bank customers. E-banking involves information technology based banking. Under this IT system the banking services are delivered by way of a computer-controlled system. This system involves direct interface with the customers. The customers need not to visit bank premises

 Popular services covered under E-banking

1. Automated teller machine

2. Credit card

3. Debit card

4. Smart card

5. Electronic funds Transfer system

6. Cheque truncation system

7. Mobile banking

8. Internet banking

9. Telephone banking

Automated teller machine

         ATM is designed to perform the most important function of bank.  it is operated plastic card with its special features. The plastic card has replaced cheque Personal attendance of the customer banking hours restrictions and paper based verification. These are debit cards. An ATM is an electronic funds Transfer terminal capable of handling cash deposits Transfer between accounts balance enquires, cash withdrawals and pay bills. It may be online or Offline. Any customer processing ATM card issued by the shared payment network system can go to any ATM linked to shared payment networks and perform his transactions

Credit card/ Debit card

         The Credit card holder is empowered to spend wherever and whenever he wants with his Credit card within the limits fixed by his bank. Credit card is a post paid card. Debit card considered as a prepaid card with usage facility limited to the balance in the linked deposit  account of the cardholder. An individual has to open an account with the issuing bank which gives debit card with a Personal identification number. When he makes purchases he enters his pin on shops pin pad. When the card is slurped through the electronic terminal it dials the acquiring bank system -either master card or VISA that validates the pin and finds out can never overspend because the system rejects any transactions which exceeds the balance in his account. The bank never faces a default because the amount spent is debited immediately from the customers account.

Smart card

           Banks are adding chips to their current magnetic stripe cards in order to enhance security and offer new services that are called smart cards. Smart cards allow

Thousands of times of information storable on magnetic stripe cards. In addition these cards are highly secure, more reliable and perform multiple functions. They hold a large amount of Personal information ranging from medical and health history to Personal banking and personal preferences.

Services of E-banking

E-banking provides a multitude of services that are as follows

 1. Bill payment service

              E-banking facilitates the payment of electricity bills, telephone bills, Credit card, and insurance premium bills. And the bank does not charge customers for online payments

2. Fund Transfer

              You can Transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India.

3. Credit card customers

              With internet banking customers cannot only pay their credit card bills online but also get a loan on their cards. In case of loss of the credit card an online reporting can be done.

4. Investing through internet banking

              Now, FD can be opened on line through funds Transfer and investors with interlinked demit account and bank account can easily trade in the stock market.

5. Recharging prepaid mobile

              By just selecting the operator name entering the mobile number and the amount of Recharge the mobile phones can be back in action within few minutes.

6. RTGS fund Transfer

             RTGS is an inter Bank funds Transfer system. Where are Transferred as end when the transactions are tiggered.

7. Shopping

             Online Shopping can also be done with a range of all kind of products. Railway and air tickets can be bought through the internet banking.

8. Online payment of taxes.

              A customer can pay various taxes on line including excise and service tax direct tax etc.

Electronic funds Transfer

              Electronic funds Transfer provides for electronic payments and collections. EFT is safe secure, efficient and less expensive than paper check payments and collections . RBI EFT is a scheme introduced by RBI to help banks offering their customers money Transfer service from account to account to any branch to any other bank branch in places where services are offered.

Internet banking

             Through internet banking you can check your transactions at any time of the day and as many times as you want to. Where as in a traditional method you get quarterly statements from the bank. If the fund Transfer has to be demand outstation where the bank does not have a branch the bank would demand outstation charges. Whereas with the help of online banking.

Mobile banking transactions

            Now banks have started offering mobile banking and telemarking to their customers. The expansion in the use and geographical reach of mobile phones has created new opportunities for banks to use this mode for banking transactions and also provide an opportunity to expand banking facilities to the excluded sections of the society.


BY: LOKESH KUMAR