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"It may not always be profitable at first for businesses to be online, but it is certainly going to be unprofitable not to be online".
Remember the time when to transfer money or to get an account statement people had to stand in never-ending queues at the bank. Online banking made life simpler for customers by accessing bank account and to carry out online banking services, 24 hours a day, and 7 days a week at any place and at any time, from your home or office, all you need is internet access.
Online banking is definitely a boon for millions of people around the world, and mostly in this time when digitalization is at its peak. It all started in the 1950s when the Bank of America introduced the concept of the electronic computer taking over the banking tasks. Other institutions moderately joined the effort by improving their banking technologies shifting from paper checks to all-electronic banking.
Internet banking, also known as online banking, e-banking, or virtual banking, is a form of banking that uses electronic and telecommunications for carrying out various financial transactions. Through e-banking, an individual can access his account and gets several services like online money transfer, instant cash, account opening, inquiry, tracking account activity, etc., through the financial institution's website. It is considered an easy and safe digital medium of banking with a low operating cost. All you need to have is a mobile phone or a computer with an internet connection to avail of the services.
- Benefits Of E-banking.
While easy access is one of the many benefits of online banking, it also makes banking highly convenient, in terms of capital, labor, time all the resources needed to make a transaction. You can access the website from anywhere without actually having to visit the bank, throughout the year 247 days. You can always rely on mobile banking even if it is the last day of your bill payment or wants to avoid the embarrassment of getting your card declined by checking the balance before making the purchase.
2. Reduced banking errors.
There is no room for human error since the information is relayed electronically. Automation of payments, easy review, other consistent financial activities ensures payments are made on time and may prevent errors like bad handwriting, mistaken information, etc.
3. Security assured.
Since online banking is one of the major services offered by banks, it also has better visibility into its transactions making it difficult for any fraudsters to play mischief. E-banking offers visibility into banking activities, encryption devices are used to ensure that all client information is protected which makes it harder for under-the-table or fraudulent activities to occur.
fig.no.2.Benifit of E-banking(bankingstrategy.com)
4. Monitoring accounts closely.
Budgeting and managing your account is made simpler when you have access to an online banking interface. You can access your account, check transactions such as deposits, cleared checks, and wired funds quickly through an online banking interface. It ensures easy review and smooth processing of all banking transactions. If you spot an unauthorized transaction, you will be able to resolve it right away, rather than waiting for monthly statements.
5. No geographical barriers.
Geographical barriers are reduced in e-banking. Instead of being physically present transactions, you can do that with a single tap of your finger or a single click of your mouse, completely hassle-free. It provides banking throughout the year, 24 hours a day, and 7 days a week via the internet.
- Forms Of E-banking.
Let us have a look at some of the most popular options to manage your money.
1. Internet Banking.
Internet Banking is a type of e-banking service which allows you to do several financial and non-financial transaction through their website. For instance, You can use your PC or laptop and an internet connection to view your account balance, request transfers between accounts, and pay bills electronically. The remote banking customer can access other automated services of the bank, as the system is integrated with the host computer system.
One of the most popular types of electronic banking is ATM or Automated teller machine. The unattended electronic machine in a public area is also an electronic computerized telecommunication device that enables customers to deposit funds, obtain cash withdrawals, change Debit Card Personal Identification Number (PIN), and use other banking services. Customers directly use a secure method of communication to access their bank accounts. Automated Teller Machine, also known as money machine or cash machine, eliminates the need of visiting a bank and allowing the customer to make cash withdrawals and check their account balances without the need for a human bank teller.
3. Debit Cards.
A lot of people use Debit cards which are also called check cards for many of their daily transactions. When you use your Debit Card for a transaction, information about the purchase is put into computer systems and then transmitted online to your account and then the transaction amount is deducted quickly from your checking or savings account. You can use the card to pay at many locations, including POS outlets, grocery stores, online shopping, restaurants, retail stores, and withdraw cash from ATMs.
fig.no.3.Forms of E-banking(freepik.com)
Statements made available online by the regular bank is called as E-statements or electronic statements. The paper statement sent through the mail is more likely to obtained by identity thieves than e-statement as they are guarded by electronic safeguards. Keeping in mind the security reasons this type of online banking is highly recommended.
Businesses rely on efficient and rapid access to banking information for cash flow reviews, auditing, and daily financial transaction processing. E-banking offers ease of access, secure transactions, and 24-hour banking options. From small start-up companies to more established entities, small businesses rely on e-banking to eliminate runs to the bank and to make financial decisions with updated information. In an information-driven business climate, companies who do not use e-banking are at a competitive disadvantage.