INTERNET

BANKING
 MEANING
 Internet Banking means any user with a personal computer and a
browser can get connected to his bank’s website to perform any of
the virtual banking functions.
 The term ‘internet banking’ or ‘e-banking’ covers both computer and
telephone banking.
 In other words it is said that it is updated ‘on-line , real-time’. The
system is updated immediately after every transaction automatically.
 E-BANKING SERVICES
 Anywhere Banking
 ATM
 Debit Card
 Credit Card
 Electronic Funds Transfer
 Online Tax Payment
 Online Bill Payment
 Customer Care Facility
 Mobile Banking
 CONT.…

Corporate/Retail Internet Banking

SMS Banking
Online Shopping
E-Statement
 ADVANTAGES TO BANKS
 Low set-up cost.
 Capability to cater to a very large customer base.
 Saves a lot of operational costs.
 Banks can offer a lot of personalized services to their
customers and reduction of burden on branch
banking.
 ADVANTAGES TO CUSTOMERS
 It is convenient.
 It isn’t bound by operational timings .
 There are no geographical barriers .
 Services can be offered at a mini-scale cost.
 Check your transaction at any time of the day, and as many times as you want .
 Getting quarterly statements from the bank , transferring funds to outstation , and
other such activities can be done free of charge through online banking .
 DISADVANTAGES
 The present system of authentication does not address the
security aspect in full .
 Data Protection and the need for a legal and regulatory
framework is another major issue .
 There is dual requirement to protect customers’ privacy and
protection against fraud .
 Lack of Stringent regulatory and operational security measures.
 PRECAUTIONS & CONCERNS
 Customer should never share personal information like PIN numbers , passwords etc.
with anyone ,including employees of the bank .
 Documents that contain confidential information should be safeguarded.
 PIN or password mailers should not be stored , the PIN and/or passwords should be
changed immediately and memorized before destroying the mailers.
 Customers are advised not to provide sensitive account-related information over
unsecured e-mailers or over the phone.
 Take simple precautions like changing the ATM PIN and online login and transaction
passwords on regular basis .
 Ensure that the logged in session is properly signed out .