What is e banking? Amazing advantages of e banking.
What is e banking – E-banking has become very common these days. e-banking is also called electronic banking, online banking, virtual banking, internet banking. Through e-banking, the account holder can operate his account from home. e-banking is a combination of banking and technology. e-banking is the delivery of a bank’s transaction or the bank’s services directly to the customer through an electronic channel.
Benefits of e-banking
1 Benefits to the Bank –
1. Less transaction cost – The bank does not have to spend more on electronic transaction.
2. Less mistakes – e-banking is completely electronic. It lacks human intervention, which reduces human error and improves transactions.
3. Minimal use of paper – Minimal use of paper is essential for environmental protection. Due to e-banking, banking operations are done digitally. This reduces the use of paper and protects the environment.
4. Banks are less crowded – Due to e-banking, account holders do business at home. They do not have to come to the bank so it helps to reduce congestion in the bank.
2. Benefits to the account holder –
1. Convenient – The account holder can operate his account anytime and anywhere as per his convenience. The e-banking service can be used 24 hours a day.
2. Save time and money – The account holder does not have to go to the bank every time to carry out transactions on his account. This saves the account holder time and money.
3. Use of services – bill payment, tax payment, cash transfer, open new account, apply loan application, credit card, ATM card, check deposit etc. The services can be used by the account holder due to e-banking.
Disadvantages of e-banking-
1. Security of password – Every customer has to use password while using e-banking. This password should be used by the customer without sharing it with anyone. Failure to do so will result in no privacy for the account and anyone can operate the account.
2. Difficult for new customers – Even today in some places people do not like to use internet banking. Because even today some people keep themselves away from the internet, so they have fears about e-banking. So it is difficult for such people to use e-banking.
3. Need to have internet – You need to have internet to use e-banking. Without internet you cannot avail e-banking.
services of e-banking services –
e-banking is delivered to the customer through hypertext markup language (HTML) using internet and web so the customer needs to have internet.
1. Fund transfer
2. Smart cards
3. Bill payment
4. ATM card
5. Credit card
6. Mobile banking
7. Telephone banking
8. Online statement of account
9. Open fixed deposit account
10. Order check book
11. recharge mobile / DTH
Features of e banking
- e-banking is the operation of a bank using the Internet.
- Each counter can easily carry out the work of each counter sitting at home without standing in line.
- Banks are closed on Sundays and other holidays, but we can also transact on holidays through e-banking.
- e-banking is beneficial for both consumers and banks.
- e banking is based on science and technology. This saves time for both the bank and the customer and the transactions are done faster.
- e-banking ensures security of transactions, confidentiality of customers and transparency of transactions.
Measures to reduce the risk of e-banking
- It is mandatory to get the required information of the customer while opening the bank account. Account should not be opened under a fictitious name. It is necessary to take the documents of all the customers so that every customer will be identified by the bank.
- Each customer should be classified into high, medium, low risk.
- Banks should look into large transactions, unusual transactions, fraud transactions.
- Banks should immediately inform the Financial Intelligence Unit India of any transaction which is found to be fraudulent.
- Banks should periodically evaluate and adhere to kyc policy and internal audit, procedures.
- The bank should pay attention to money laundering or other risks that may arise due to new technology. Banks should follow the guidelines of kyc / aml / cft.
Types (components ) of e-banking (What is e banking)
informational website – This website provides information to the customer about financial institutions and their services.
transactional website – We can do transaction from this website. This website is about the relationship between the customer and the bank. From which transactions are transacted. These transactions range from simple balance enquiry transactions to large fund transfers.
How can I do e-banking?
If you want to keep track of your account, e-banking is a service designed for you. But it is also important to understand how to use e-banking. How to use online account ?, What are its features ?, How to keep your account safe while using e-banking? , What are its benefits? What are its disadvantages? What is e banking? It is important to understand this.
If you do not have a bank account, you should first open an account with a bank that offers e-banking services. Once your account is opened, go to the website of the respective bank and enable online access. For this, the account holder’s identity card, kyc documents and personal information have to be filled online.
We can use e-banking by following these steps.
1. Visit the website of the concerned bank.
2. Login to the personal banking section of the bank website.
3. When the new page opens, click continue to login.
4. Click here to register.
5. On the next screen the personal information of the account holder is asked. This includes account number, CIF number, branch code, country, register mobile number etc.
6. Recheck the entered details and click on submit button.
7. You need to set a unique username and password for your account sefty. For more security, use capital letters, small letters, numbers and special characters in the password. And submit.
8. Once your registration is successful, login to e-banking.
9. Now you can use your online account.