INDIRA SELVAM .

R
Introduction

Electronic banking has many names like e banking, virtual banking, online
banking, or internet banking.
It is the use of electronic and telecommunications network for delivering
various banking products and services.
A customer can access his account and conduct many transactions using
his computer or mobile phone.
The customers can perform basic banking transaction electronically, round
the clock, throughout the world
History of e-banking

Online Banking was first adopted in New York in 1981

In India, Liberalization of banking in 1991 and the entry of private banks
marked the beginning of e-banking.
Internet banking arrived in India in the late 1990s
ICICI was the first bank to introduce internet banking to its customers in
1996
Level of access Channels

Information Only System Automated Teller Machine

Electronic Information Transfer (ATM)
System Smart Cards
Fully Electronic Transactional Tele Banking
System Internet Banking
Services

 Electronic Fund Transfer (ETF)

 Electronic Clearing System(ECS)
 Bill payment service
 Credit card
 Investment
 Shopping
 Railway pass
 Check account balance & track transaction activity
 Answering routine queries
Advantages

 Easy to handle large volume of customers

 Low cost setup
 Round the clock banking
 No geographical barriers
 Greater Convenience
 Portable banking
 Speed banking
 Quality banking
 Environment friendly
Disadvantages
 Must be comfortable with technology
 Must need an account with internet service
 Requires regular maintenance
 Security and privacy risks
 Hacking
 Phishing
 Skimming
 Spyware
 Trojan horse
 Legal issues
 No separate internet banking laws in India
 Internet banking guidelines by RBI is insufficient
 Lack of due diligence and cyber security requirements
Precautionary measures

 Specific guidance to be provided by bank

 Non disclosure of password and ID by customer
 Periodically changing of passwords
 Promptly log out from the service
 Regular checking of account balances and statements to identify unusual
transactions.
 Don’t access banking through public terminals
 Install anti virus and anti spywares