e of videotext (Minitel) was subsidized by the telecom provider and the UK, where the Prestel system was used.
The first home online banking services were set up by the Nottingham Building Society (NBS) located in UK in 1983.
The system used was based on the UK
s Prestel system and used a computer, such as the BBC Micro, or keyboard (Tan data Td1400) connected to the telephone systemand television set.
The system (known as
) allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank transfers and bill payments, awritten instruction giving details of the intended recipient had to be sent to the NBS who set the details up on the Home link system.
Typical recipients were gas, electricity and telephone companies and accounts with other banks. Details of payments to be made were input into the NBS system bythe account holder via Prestel. A cheque was then sent by NBS to the payee andan advice giving details of the payment was sent to the account holder. BACS waslater used to transfer the payment directly.
Stanford Federal Credit Union was the first financial institution to offer online internet banking services to all of its members in Oct, 1994. Later on it wasadopted by worldwide banks.3.Internet baking in India
Internet banking, both as a medium of delivery of banking services and as a strategic tool for business development, has gained wide acceptance internationallyand is fast catching up in India with more and more banks entering this market.
ICICI was the first bank in India to launch internet banking facility in the year 1997.
A recent survey consisting of 46 banks, has revealed that at present, 11 banks in India are providing Internet banking services at different levels, 22 banks propose to offer Internet banking in near future while the remaining 13 banks haveno immediate plans to offer such facility.
At present, the total Internet users in the country are estimated at 2.5 Crores.
About 60% of internet users use internet banking directly or indirectly.
Costs of banking service through the Internet form a fraction of costs through conventional methods. Rough estimates assume teller cost at Re.1 per transaction,
ATM transaction cost at 45 paise, phone banking at 35 paise, debit cards at 20 paise and Internet banking at 10 paise per transaction.
The cost-conscious banks in the country have therefore actively considered use o