E-Banking

e-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access e-banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the various e-banking access channels, this booklet focuses specifically on Internet-based services due to the Internet's widely accessible public network. Accordingly, this booklet begins with a discussion of the two primary types of Internet websites: informational and transactional. 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 involves information technology based banking. Under this I.T system, the banking services are delivered by way of a Computer-Controlled System. This system does involve direct interface with the customers. The customers do not have to visit the bank's premises.

The popular services covered under E-banking include :-

1.         Automated Teller Machines,

2.         Credit Cards,

3.         Debit Cards,

4.         Smart Cards,

5.         Electronic Funds Transfer (EFT) System,

6.         Cheques Truncation Payment System,

7.         Mobile Banking,

8.         Internet Banking,

9.         Telephone Banking, etc.

 Advantages of E-Banking

The main advantages of E-banking are :-

1.     The operating cost per unit services is lower for the banks.
2. It offers convenience to customers as they are not required to go to the bank's premises
3. There is very low incidence of errors
4. The customer can obtain funds at any time from ATM machines
5. The credit cards and debit cards enables the Customers to obtain discounts from retail outlets.
6. The customer can easily transfer the funds from one place to another place electronically.