Electronic banking (or net banking) refers to an application of the Internet that allows customers to dial into bank networks or their websites, by using their own telephones and computers, and to get a host of banking services directly on their home or office PCs.
Net banking offers the customer easy chair convenience and access to their account information from anywhere in the world, at any time of the day or night. That means, as long as you have a computer, a phone, a modem line and an Internet connection, you don't need to worry about bank holidays or taking time out to go to the bank, or standing in long queues for a simple transaction. You can access most of the bank's services from the comfort of your home/office Internet banking, Internet bank, online banking, virtual bank, cyber bank are some of the jargons being bandied about everywhere. But can all these terms be used interchangeably? Answer is yes and no. There is a slight difference. An Internet bank, or rather, an Internet-only bank is a virtual bank, or a cyber bank, one that does its business entirely on the web. Internet banking is a branchless banking. Internet banking and online banking can of course be used interchangeably. The fundamental principle here is the same that is, using the internet to perform banking transactions. An important difference between an Internet Bank and online banking is that you don't need any special software to access the Internet banking services. You just need a computer and an Internet connection. But to access the services of an online bank, special software is necessary, at least for some services. What attracts people to Internet-only banking is the convenience, as in free bill paying and the fact that there is no need to change banks if you relocate. Another important is the free service they offer.
The bank's costs are significantly lowered, since it has to support only a single online computer network. When a traditional bank goes online, it has to support large networks, additionally to its ATMs, branches, etc. These cost savings for the bank may be translated into significantly lowered fees or possibly no fees at all for the internet banking services. Some Internet banks offer24-hour Internet access to the account, no-fee checking, unlimited check use, and a VISA check/ATM card all for no charge. The interest paid in an Internet bank account may be varied. Some banks might offer low interest or no interest at all; some might offer high interest rates (higher than the rates offered by traditional banks). In the former case, the internet bank account may be used just to pay the bills.
Internet banks are technologically capable and may give more information than a traditional bank. Suppose you withdraw money from an ATM, the transaction will be revealed within an hour on the bank's website. If you have more than one account, transferring money to and from the accounts will be very easy.
Basic Features Of Online Banking
· The banks offer only relevant information about their products and services to the mass.
· Few banks provide interaction facility between the banks and its customers.
· Banks are coming up with arrangements of utility payments, like telephone bills, electricity bills, etc.
· Viewing recent transactions
· Downloading bank statements, for example in PDF format
· Transaction approval process
Advantages Of Internet Banking
· An internet banking account is simple to open and use.
· Internet banking costs less.
· Comparing internet banks to get the best deal is easy.
· You can keep your account balanced using your computer and your monthly statement.
· Top your pre-paid mobile cards by logging on. Select your operator's name, enter the mobile number and the amount for recharge.
· Request for cheques and stop payments.
· You can access and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site.
· Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds.
Disadvantages Of Internet Banking
· Doing transactions on the internet can be very impersonal.
· Many people still don't trust the internet.
· For a first time user, navigating through a website of an internet bank may be hard and may take some time.
· Many people shy away from internet banking because of the security threat.
· You might find it difficult to get on to the internet at certain times of day - weekday evenings are the most popular.
· The speed with which you access your account will also depend on the amount of memory your computer has or the speed of your modem.
· And if your computer crashes completely you will have to resort to the telephone or branch until it is back up.
· Banking sites can be difficult to navigate at first
You will have a user name and password to access your online account. Just as with any information used to access any other financial account, you should keep these codes secret. Your bank will tell you what to look for,usually an icon of a locked padlock to ensure you are accessing your account over a secure line.
A successful Internet banking solution offers
· 24 hour account access
· Credit cards with low rates
· Exceptional rates on Savings.
· Checking with no monthly fee,free bill payment and rebates on ATM surcharges
· Easy online applications for all accounts.
· Quality customer service.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
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