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Net Banking - Internet Banking | Online Banking Research Team | Posted On Thursday, October 18,2018, 05:03 PM

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Net Banking - Internet Banking | Online Banking



This facility helps manage your account conveniently from anywhere and at anytime, through a secure network. Internet banking also known as e-banking, online banking or virtual banking is an electronic payment system that enables the customer to make transactions through bank apps and website. Online banking offers a comprehensive range of transactions from the comfort of home.  You can check your account balance, download account statements, pay utility bills, invest in fixed and recurring deposits and recharge your mobile/DTH connection and much more, without having to stand in long queues at banks.

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Net Banking- Internet Banking, Online Banking, E-banking India

What is net banking all about?

Net banking is a simple, convenient and powerful tool that allows you operate the account online. It gives real time information on your account. To start using net banking, you have to log on to the bank’s website using customer ID and IPIN (net banking password).

Customer ID: The customer ID is a unique identification number given to every customer holding a savings bank account or a current account. It is mentioned in your account statement/ account welcome letter or cheque book. The customer holding a current account or HUF (Hindu undivided family) customers can obtain this from the bank branch.

IPIN: It is an internet banking password that the customer can choose to access net banking. The password generated is confidential in order to maintain the security of the customer’s account.

Facilities that can be availed through net banking:

Net banking is a convenient option that allows a customer avoid the hassles of physically going to the bank to avail banking facilities. There are over 200+ transactions that you can do through net banking. Listed below are some transactions that can be done through net banking:

  1. Invest in fixed deposits and recurring deposits
  2. Pay utility bills
  3. View credit card details and pay credit card dues.
  4. Recharge prepaid mobile and the DTH connection.
  5. Check account balance and download 5 year account statements.
  6. Pay taxes online and view tax credit statements
  7. Transfer funds between accounts.
  8. Purchase gift cards
  9. Invest in mutual funds
  10. Request demand drafts or cheque books
  11. Book railway tickets online
  12. View loan details
  13. Update PAN details
  14. Request for debit card PIN regeneration.
  15. Register for third party transfer.

Net Banking Registration

Registering for net banking is a quick and easy process. Any individual holding a savings bank account or current account, can register for net banking through the secure website of the bank. To register for net banking, open the app on your mobile and access your customer ID.

There are four ways to register for online banking. They are:

1. Online registering: To register follow these steps:

  • Enter customer ID
  • Confirm mobile number
  • Type the generated OTP
  • Provide debit card details
  • Set your password i.e. IPIN

2. Phone banking: to register follow the steps below:

  • Call the phone banking number in your city
  • Provide the customer ID to the phone banking agent
  • Provide the registered mobile number
  • A net banking request is registered
  • IPIN will be sent to the mailing address in 5 days.

3. ATM: registering for net banking can also be done through ATMs.

  • Visit your nearest ATM
  • Enter card number and debit card pin
  • Select “other options” from the screen
  • Select “net banking registration” and confirm
  • The generated IPIN will be sent to customers mailing address.

4. From the branch: Net banking can also be availed by visiting  the bank branch.

  • Download the Net Banking registration form.
  • Submit the duly filled form to your branch
  • The IPIN will be sent to the mailing address.

What is Virtual keyboard?

Virtual keyboard is designed specifically to keep the banking experience, simple and safe. Virtual keyboard is provided to keep the password secure and gives an option to the customer to input their IPINs with the help of a mouse. The virtual keyboard is designed to protect customers from malicious “spy ware” and “Trojan programs” so that their password and account details remain secure with the bank. However, the customer may choose to use the physical keyboard, as and when required.

SEE ALSO: Top 10 Tips For Personal Loan

Steps to use virtual keyboard:

To use the virtual keyboard follow these steps:

  • Select  “click here to use virtual keyboard for IPIN only”
  • Enter IPIN with the help of the mouse on the virtual keyboard.
  • Press the characters of the pin in the given box.
  • Over the IPIN is entered, click on “log in” button and get started with net banking transactions.

Forgot your IPIN password?

The IPIN password is very important to continue net banking transactions. In case you forget your password, you can instantly reset the password (IPIN) by following these steps:

  1. Enter the customer ID
  2. Select one of the two methods for authenticating the transaction
  3. Provide the credit card details and select “send OTP”.
  4. The OTP is send to the registered mobile number.
  5. Enter the OTP and provide the requisite details
  6. Set the IPIN
  7. Log on to net banking using the new IPIN.

IPIN Regeneration request received at branches would be charged at Rs. 100 + taxes (as applicable)

Third party transfer:

What is third party transfer?

Transfer of funds within accounts belonging to the same person is called fund transfer. Third party transfer is a feature used to transfer funds to another account that belongs to someone else in the same bank or any other bank.

Types of third party transfer:

Listed below are some of the ways of third party transfer:

National electronic fund transfer (NEFT): National Electronic Fund Transfer (NEFT) is a nation-wide payment system, facilitating one-to-one fund transfer. Under this Scheme, individuals can electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country, participating in the Scheme. To transfer funds, the beneficiary is added to the account and transactions are carried out by providing details like account number and IFSC code.

Real time gross settlement (RTGS): The word 'RTGS' stands for Real Time Gross Settlement, which can be defined as the continuous settlement of funds, individually on an order by order basis. It is 'Real Time' which means the instructions are processed at the same time they are received, rather than at a later time. Gross Settlement means the settlement of fund transfer instructions occur individually (on an instruction by instruction basis). Considering that the fund settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable. To transfer funds, the beneficiary is added to the account and transactions are carried out using details like account number and IFSC code.

Immediate payment service (IMPS): The word IMPS stands for Immediate Payment Service which helps access your bank account and transfer funds instantly and securely. You can send money through Net banking from a laptop or PC. This service enables you transfer funds from your account to the recipients account. The beneficiary account is credited immediately when a fund transfer request is made. This service is available throughout the year including Sundays and any bank holiday.

 Points to note:

  1. The third party transfer is available for all the customers who have mobile numbers registered with the bank
  2. Individuals holding a current account need to register themselves with the bank to conduct third party transactions.
  3. There are no charges on NEFT/ RTGS transactions made through mobile banking or net banking

Third party transfer limits:

There are certain limits up to which a transfer can be made. There is a default limit of Rs 2 Lakhs on all accounts. However, the customer has the freedom to modify the limit and increase it online or offline.

What is Secure Access?

A Secure Access Module is based on Smart Card Integrated circuits and is used to enhance the security and cryptographic performance in devices needed to perform secure transactions, such as payment terminals. This is implemented to provide an extra layer of security to the net banking process. All third party transactions are also covered under secure access. The main aim of secure access is to monitor the net banking transactions, with the aim to block or report any deviant transactions.

What services are covered under secure access?

Listed below are the transactions covered under secure access:

  • Transfer of funds from one account to the other.
  • Transfer from one Bank account to the beneficiary account through RTGS and NEFT.
  • Visa Card Pay transactions
  • Third Party Demand Draft through Net Banking
  • Online Shopping

Disadvantages of net banking:

Though there are many advantages of internet banking there are some disadvantages as well. The disadvantages of online banking are as follows:

  • A person who is new and is not used to net banking, may face some difficulty. Understanding how internet banking works may be difficult for a beginner.  There are websites that offer a demo on how to access online accounts but are limited and all the banks do not offer this facility.
  • To access online banking, an individual needs an internet connection. Thus without the availability of internet connection an individual cannot use online banking.
  • Online banking cannot be used when the bank servers are down.
  • Sometimes it gets difficult to receive information on whether the transaction was complete or not. It happens due to the loss of internet or due to a slow connection or when the bank servers are down.
  • Security of transactions is an issue. As the transactions are related to funds, accounts getting hacked by unauthorized persons can pose a severe threat and might lead to loss of money.
  • Your account can be misused in case someone gets to know the password. Therefore, it is important to note that individuals must memorize the password. Make sure to keep the password a secret to avoid misuse of your account.

Online banking is convenient and easy to operate. Online banking saves you the hassle of physically going to the bank for depositing or withdrawing money or requesting an account statement. You can do this and much more using the online services offered by banks.

Advantages of Net Banking:

These are a few advantages of banking online:

  1. Convenience:  you can undertake banking transactions from the comfort of home. Net banking overcomes all shortcomings like physically going to the bank and you can avail these services anytime throughout the year.
  2. Better rates: certain banks offer the zero cost online fund transfer facility for online banking. There is a low penalty for early withdrawal on online banking. Infrastructure costs are low.
  3. Specialized services: certain banks provide various convenient tools to enable easy access and maintenance of the account calculators, online money monitoring tools and tools of analysis.
  4. User friendly: online banking is simple and easy to start with. It can be further simplified by using net banking applications on mobile phone.

With e-banking, financial transactions are no longer limited to bank branches. This facility has enabled real time updates that have helped minimize the follow-up procedures to check the details of transactions. You can avail banking facilities from anywhere and at anytime, through the net banking facility.

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