Electronic Banking

Banking service providing through electronic medium is known as Electronic banking. Being keen to offer you the latest Electronic Banking services, modern bank presents its diverse Electronic Banking services that meet your different needs in an easy, convenient and secure way. We hope that these packages meet your expectations, while keeping our competency to continue offering you more products and services that suit your financial needs, hoping to reach your utmost satisfaction. .

What is E-Banking
The following chart exhibits the definition of E-Banking. E-Banking Other on line Financial Services and Products

E-Commerce

E-Finance

E-Money

E-Banking Other Online finace Service provider
ATM Services Any branch banking Internet Banking Virtual Banking SMS banking Wireless Application Protocols Telephone Banking Electronic Fund Transfer (EFT) SWIFT Channel Other electronic delivery channels

E-Commerce
The Phenomenon of Electronic Commerce has permeated into every aspect of our life today. Electronic Commerce has been around for the

last two decades in some form or the other, but the new force that is driving Electronic Commerce is the Internet, which is revolutionizing the way companies around the globe conduct business. Internet based electronic commerce is playing a critical role in addressing strategic, mission critical business needs of the companies and hence the companies are making it an integral part of their business strategies.
E-Commerce E-Finance E-Money

Globally, according to a survey conducted by IDC, currently the electronic commerce over the Internet is some $26 billion, while it is expected to reach about $1.5 trillion by 2008-09. These mind boggling, figures are sufficient for any sane individual, even vaguely connected to industry, trade or commerce, to understand the potentially radical influence that E-commerce is having on human society. All this is due to the Internet, a simple network of networks of computers across the globe, linked through various means: cable, satellite, telephone lines etc. based on the TCP/IP protocol. This network has not only altered the way we conduct trade and commerce, but also fundamentally altered the way we communicate, the way we live andto some extent, the way we think. Simply, E-commerce is buying and selling on electronic networks, predominantly the Internet. This could involve trade of tangible good s/services similar to traditional commerce, or intangible items like music, information and involving digital transfer etc. The World Trade Organization (WTO) distinguishes six main instruments of electronic commerce: The Telephone, the fax, the television, Electronic payment and money transfer systems, Electronic Data Interchange, and The Internet. Though the telephone, fax, TV and EDI have been in existence for some time, but when people talk of E-commerce, they usually refer to In ternet Business, wherein goods or services are traded on the net. Fundamentally, there are two types of Electronic Commerce –

1. Business to Business electronic commerce (B2B), and 2. Business to Consumer electronic commerce (B2C) B2B E-commerce is today about 80% of total E-commer ce in the world, due to its advantages like: reduced transaction costs, improved product quality , improved service, minimal investment for global reach, reduced inventory costs etc. B2C or retail E-commerce is nowhere near B2B in ter ms of size but it is growing phenomenally as far as volumes are concerned. More and more people are taking to shopping on the Internet due to the following facto rs: Convenience, More choice, more range, Better prices, etc. DRIVERS OF E-COMMERCE The following broad themes have been identified as the driving forces for the phenomenal growth of E-commerce globally: (i) Electronic Commerce is easy and affordable (ii) Electronic Commerce transforms the market place (iii) Electronic Commerce has a catalytic effect (iv) Enhanced customer service (v) Electronic commerce over the Internet vastly increa ses interactivity in the economy (vi) Openness is the underlying technical and philosophi cal tenet of the expansion of Ecommerce (vii)Electronic commerce alters the relative importance of time

E-Money
E-money includes electronic debit and credit system smart card. The smart card has been defined many ways, but is generally defined as “portable data storage device with intelligence (chip memory) and provision for identity and security.” In their simplest forms, these cards are small microcomputers—lacking only external power supply, displays, and keyboards. One of the most widely tested stored value cards offered by Mondex, has an electric wallet, available as an opt ional accessory, with both of these peripheral devices. The microprocessor chip in a st ored –value card is specialized and custom-designed, generally with specific patented control and production circuits. Certain data, primarily related to the security of the card, can be entered only at the time of manufacture. In addition to a microprocessor each card generally has several kilobytes of permanent memory, both rewritable and non-rewriteable. A new technology brings with it not only the potential for success. But also a neverending series of questions regarding its design, its value to the user, its ultimate use and acceptability. In this paper the term smart cards, stored-value cards and electronic money will be used to denote money in the form of “value”, whether it is issued in card-based or network-based form. Although there are technical differences the term “smart card” is generally used interchangeably with stored-value card. There are many questions regarding these new payments devices that need to be answered by the designers, issuers, and regulators of these devices. This innovation has the potential of changing the retail payments arena in a way that has not happened since the advent of the credit card. But at this time it is only potential.

Although there has been significant effort made to eliminate paper-based payment transactions, the basic way of handling payments byconsumers has not changed. Storedvalue cards may help to make the transition from paper-based payments to electronically-based payments more likely as these cards incorpora te familiar aspects of using money in a way that could prove to be both convenient and acceptable to the public

Electronic banking, also known as electronic funds transfer (EFT), is simply the use of electronic means to transfer funds directly from one account to another, rather than by check or cash. You can use electronic funds transfer to: • • • • • • • have your paycheck deposited directly into your bank or credit union checking account. withdraw money from your checking account from an ATM machine with a personal identification number (PIN), at your convenience, day or night. instruct your bank or credit union to automatically pay certain monthly bills from your account, such as your auto loan or your mortgage payment. have the bank or credit union transfer funds each month from your checking account to your mutual fund account. have your government social security benefits check or your tax refund deposited directly into your checking account. buy groceries, gasoline and other purchases at the point-of-sale, using a check card rather than cash, credit or a personal check. use a smart card with a prepaid amount of money embedded in it for use instead of cash at a pay phone, expressway road toll, or on college campuses at the library's photocopy machine or bookstores. use your computer and personal finance software to coordinate your total personal financial management process, integrating data and activities related to your income, spending, saving, investing, recordkeeping, billpaying and taxes, along with basic financial analysis and decision making.

Types Of Electronic Banking
Automated Teller Machines (ATMs) also called 24-hour tellers are electronic terminals which give consumers the opportunity to bank at almost any time. To withdraw cash, make deposits or transfer funds between accounts, a consumer needs an ATM card and a personal identification number. Some ATMs charge a usage fee for this service, with a higher fee for consumers who do not have an account at their institution. If a fee is charged, it must be revealed on the terminal screen or on a sign next to the screen. Direct Deposit and Withdrawal Services allow consumers to authorize specific deposits, such as paychecks or social security checks, to their accounts on a regular basis. It is also possible to authorize the bank, for a fee, to withdraw funds from your account to pay your recurring bills, such as mortgage payment, installment loan payments, insurance premiums and utility bills. Pay by Phone Systems let consumers phone their financial institutions with instructions to pay certain bills or to transfer funds between accounts. Point-of-Sale Transfer Terminals allow consumers to pay for retail purchase with a check card, a new name for debit card. This card looks like a credit card but with a significant difference the money for the purchase is transferred immediately from your account to the store's account. You no longer have the benefit of the credit card "float", that is the time between the purchase transaction and when you pay the credit card bill. With immediate transfer of funds at the point-of-sale, it is easy to overdraw your checking account and incur additional charges unless you keep careful watch on spending. Personal Computer Banking Services offer consumers the convenience of conducting many banking transactions electronically using a personal computer. Consumers can view their account balances, request transfers between accounts and pay bills electronically from home.

Consumer Protection -- Electronic Funds Transfer Act
The 1978 Electronic Funds Transfer Act is the governing statute while the Federal Reserve Board's Regulation "E" provides guidelines on electronic funds transfer card liability. The regulations require that: • a valid EFT card can be sent only to a consumer who requests it.

• •

unsolicited cards can be issued only if the card cannot be used until validated. the financial institution must inform you of your rights and responsibilities under the law in a written Disclosure Statement, including the procedure to correct errors in your periodic statements. the user is entitled to a written receipt when making deposits or withdrawals from an ATM or using a point-of-sale terminal to make a purchase. The receipt must show the amount, date and type of transfer. periodic statements must confirm the amount of all transfers, the dates and types of transfers, type of accounts to or from which funds were transferred, and the address and phone number to be used for inquiries regarding the statement.

Problems and Errors. You have 60 days from the date a problem or error appears on your written terminal receipt or on your periodic statement to notify your financial institution. If you fail to notify the financial institution of the error within 60 days, you may have little recourse. Under federal law, the financial institution has no obligation to conduct an investigation if you have missed the 60-day deadline. Lost cards. If you report an ATM or EFT card missing before it is used without your permission, the card issuer cannot hold you responsible for any unauthorized withdrawals. If unauthorized use occurs before you report it, the amount you can be held responsible for depends upon how quickly you report the loss. If you report the loss within two business days after you realize the card is missing but you do report its loss within 60 days after your statement is mailed to you, you could lose a much as $500 because of an unauthorized withdrawal. If you do not report an unauthorized withdrawal within 60 days after your statement is mailed, you risk losing all the money in your account plus the unused portion of your maximum line of credit established for overdrafts.

ATMs http://www.in.gov/dfi/education/atm_cards. htm

Credit & ATM Cards - What to do if They're Stolen http://www.in.gov/dfi/education/stolen atm.htm

Automatic Debit Scams Credit and ATM Cards http://www.in.gov/dfi/education/AutomScm http://www.in.gov/dfi/education/CrATM. .html html Cyber Shopping Debit Cards vs. Credit Cards http://www.dfi.state.in.us/conscredit/Cyber http://www.in.gov/dfi/education/debit_v sh.html s.htm Electronic Banking http://www.in.gov/dfi/education/ebk.ht m DISCUSSION TOPICS

1. List several examples of electronic funds transfers and discuss your experiences with EFTs.

2. Describe smart cards and give examples of what they can do.

3. Describe check cards and give examples of what they can do.

4. What consumer protections apply to lost or stolen EFT cards under the federal Electronic Funds Transfer Act?

5. What information must be included in periodic EFT statements from your financial institution, and why is it important for consumers to check this information for accuracy as soon as possible after receipt?

ACTIVITY

1. Invite a resource person from a local bank or credit union to come to your classroom to explain their EFT services. Ask about costs, consumer problems, consumer protections under the law, and the resource person's vision of new uses of electronic money in the future. 2. Survey several friends about their experiences with electronic money and their greatest concerns. 3. Using the EFT COMPARISON WORKSHEET (last page), evaluate the EFT services provided by local financial institutions, including costs, benefits and restrictions. Determine which services would suit your financial situation and provide the most convenience and benefits. Give students our Brochures.

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