E-BANKING

Presented by
Aman Gupta
Ashish Mishra
Kanishq Baweja
Karan Krishnamurthy
Zoravar Kalsia

E-BANKING
Banking done electronically is electronic
banking. In other words, it is the
products and services provided by the
banks by using the electronic media or
internet.

RANGE OF SERVICES OFFERED

Electronic Funds Transfer (EFT)

Automated Teller Machines (ATM)
Point of Sales (PoS)
Electronic Data Interchange (EDI)
Credit Cards
Debit Cards
Smart Cards
Digital Cash

BENEFITS TO THE BANK

Competitive advantage
Unlimited network
Lesser work load
Marketing tool
Lesser establishment costs
Lesser chances of fraud & misappropriation
Better profitability
Better customer relationship

BENEFITS OF E-BANKING

Any time banking

Any where banking
Cash free banking
Reduction in Cost of transaction
Easy to make utility payments
On-line purchases

E-banking in India
Finland was the first country in the
world to have taken in E-banking. In
India, it was ICICI Bank which Ebanking as early as 1997 under the
brand name Infinity

Impacts in India

ICICI s profit to equity holders

registered a growth of 21% percent in
2001.
Citibank claims that its project Suvidha,
which started off in Bangalore in early
in 1998, has encouraged customers to
interact with electronically, using
telephones, the Internet, and ATMs.

Impacts in India

The formal Vice President of Global Trust

Bank, P.C. Narayan says,
An electronic transaction costs as much
as 65% less than a physical one. ATMs have
definitely emerged as the new business
model for the banks and the way banking has
been conducted. I think it is one of the
remarkable things that has happened to
Indian Banking Industry.

Measures taken by RBI

A Reserve Bank of India (RBI) committee has

come out with the road map for electronic
banking and has sought legislation on EFT
systems to facilitate multiple payment
systems for banks and financial institutions.
The RBI has been gearing up to upgrading
itself as a regulator and supervisor of the
technologically dominated financial system

Initiatives taken by RBI

Several initiatives taken by the

Government of India as well as the RBI
have facilitated the development of Ebanking in India. The Govt. of India
enacted the IT Act, 2000 with effect
from Oct.17,2000, which provides
recognition to electronic transactions
and other means of electronic
commerce.

Drawbacks

Difficult in the adoption of technology

Fear of technology
High cost of technology
Lack of preparedness
Restrictions on usage of technology

E-Banking Risks
*The types of e-banking risks include:
Transaction or operations risk
Credit risk
Liquidity, interest rate, price, and
market risks
Compliance or legal risk
Strategic risk

Conclusion
The potential of E-banking is huge.
With the increase in connectivity, the
number of users will explode, says K.V.
Kamat, the Chairman of ICICI Bank.
The strategy for banks is to provide
value-added services to products to
customers utilizing the Internet
extensively.

Web based banking service or E-Banking,

the latest generation of banking
transactions, has opened up new
window of opportunity to the banks and
existing financial institutions.
Since its evolution in 90th decade, it is
having unprecedented growth.

Last but not the least,

The power of person-to-person
communication and word of mouth can
never be underestimated

THANK YOU
.
.