E-BANKING

Internet banking or E-banking:
Internet banking (or E-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. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The network which connects the various locations and gives connectivity to the central office within the organization is called intranet. These networks are limited to organizations for which they are set up. SWIFT is a live example of intranet application.

Internet banking in India:
The Reserve Bank of India constituted a working group on Internet Banking. The group divided the internet banking products in India into 3 types based on the levels of access granted. They are: i) Information Only System: General purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There exist facilities for downloading various types of application forms. The communication is normally done through e-mail. There is no interaction between the customer and bank's application system. No identification of the customer is done. In this system, there is no possibility of any unauthorized person getting into production systems of the bank through internet. Electronic Information Transfer System: The system provides customer- specific information in the form of account balances, transaction details, and statement of accounts. The information is still largely of the 'read only' format. Identification and authentication of the customer is through password. The information is fetched from the bank's application system either in batch mode or off-line. The application systems cannot directly access through the internet. Fully Electronic Transactional System: This system allows bi-directional capabilities. Transactions can be submitted by the customer for online update. This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure. It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure. Automated Teller Machine (ATM): ATM is designed to perform the most important function of bank. It is operated by plastic card with its special features. The plastic card is replacing cheque, personal attendance of the customer, banking hours restrictions and paper based verification. There are debit cards. ATMs used as spring board for Electronic Fund Transfer. ATM itself can provide information about customers account and also receive instructions from customers - ATM cardholders. An ATM is an

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Electronic Fund Transfer terminal capable of handling cash deposits, transfer between accounts, balance enquiries, cash withdrawals and pay bills. It may be on-line or 0ff-line. The on-line ATN enables the customer to avail banking facilities from anywhere. In off-line the facilities are confined to that particular ATM assigned. Any customer possessing ATM card issued by the Shared Payment Network System can go to any ATM linked to Shared Payment Networks and perform his transactions.

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Credit Cards/Debit Cards: The Credit Card holder is empowered to spend wherever and whenever he wants with his Credit Card within the limits fixed by his bank. Credit Card is a post paid card. Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. An individual has to open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). When he makes a purchase, he enters his PIN on shops PIN pad. When the card is slurped through the electronic terminal, it dials the acquiring bank system - either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. The customer can never overspend because the system rejects any transaction which exceeds the

balance in his account. The bank never faces a default because the amount spent is debited immediately from the customers account. vi) Smart Card: Banks are adding chips to their current magnetic stripe cards to enhance security and offer new service, called Smart Cards. Smart Cards allow thousands of times of information storable on magnetic stripe cards. In addition, these cards are highly secure, more reliable and perform multiple functions. They hold a large amount of personal information, from medical and health history to personal banking and personal preferences.

You can avail the following services through EBanking.
i) Bill payment service You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple onetime registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customers for online bill payment. Fund transfer You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees's account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services. Credit card customers With Internet banking, customers can not only pay their credit card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online.

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Railway pass This is something that would interest all the aam janta. Indian Railways has tied up with ICICI bank and you can now make your railway pass for local trains online. The pass will be delivered to you at your doorstep. But the facility is limited to Mumbai, Thane, Nashik, Surat and Pune. Investing through Internet banking You can now open an FD online through funds transfer.Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system. Nowadays, most leading banks offer both online banking and demat account. However if you have your demat account with independent share brokers, then you need to sign a special form, which will link your two accounts. Recharging your prepaid phone Now just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is again back in action within few minutes. Shopping With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking.

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Advantage of Internet banking:
As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost." Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. Where in a traditional method, you get quarterly statements from the bank. If the fund transfer has to be made outstation, where the bank does not

have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you.

Security Precautions:
Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorised before destroying the mailers. Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out.

Benefits of Electronic Banking:
Electronic banking or online banking is now the most popular form of e-commerce for millions of Americans. Most mainstream banks and even credit unions now offer a host of products and services over the Internet. Investment by banks in secure-transaction technologies and robust IT practices has made electronic banking more reliable and popular. Convenience: You can shop, pay bills, buy items at auction, and transfer money from anywhere at any time. Features: Electronic banking can be carried out at any time of the day or night as long as one has access to a PC (or other hand-held device) and Internet connectivity. Attractive Rates and Incentives: Banks offer attractive interest rates for CDs that are opened online. Many others also offer incentives, giveaways and special offers to customers for opening accounts online.

Consolidated Portfolio Interface: Most banks offer a seamless and consolidated interface to customers for managing their debt and credit accounts, mortgages, investment portfolio and other financial assets. Time Saving: Time saved from traveling to brick-and-mortar bank branches for conducting banking transactions and other key banking activities can be used productively for other pursuits.

Traditional banking and e-banking are two way for getting the benefits from bank. Both have benefits and disadvantages. 1. Basic Introduction: (a)TraditionalBanking In traditional banking system, a customer can open any bank account in banks, take the facility of saving his money by depositing money in local bank. He can withdraw his money through check, counter payment and through bank draft. He can meet the bank manager and ask his problem. He can take the physical help for getting loan from bank. (b)E-banking E-banking means Internet banking or modern banking or online bill. In this method, customer gets his bank account ID and password and he can check his account, pay his bill and print his receipt through his home personal computer which is connected with Internet. E-banking is development of today banking system. In other words, e-banking is electronic banking whose facility, you can take through your regular broadband Internet connect. 2.Benefits (a) TraditionalBanking Traditional banking has totally improved from previous face. Few days ago, I went to State bank of India for withdrawing my money where

I saw many monitoring cameras. My one friend is also doing duty in that bank. I asked question from my friend why have these cameras been attached here? Are these on? My friend explained me that it is more than Rs. 500,000 cost project per branch of SBI. We do not want to take risk of customer's money. Customer's loss is our loss. We deduct fraud case by monitoring the activities through this surveillance cameras. I feel happy because now traditional banking has improved and there is minimum change of fraud. (b)E-banking (i)Convenient I think e-banking is convenient because we can use e-banking for tracking my money in bank without going to bank. I am already changing everything from traditional to online. I am tracking my courier letter by opening the site of courier and writing the track no. after this I can easily know when my letter will come from foreign country. (ii)Protection of Environment If we all start to use e-banking, we can also protect our environment. Suppose, you have to withdraw Rs. 500,000 from HDFC bank and deposit it to SBI. What will you do? You will start your vehicle and go to HDFC bank and withdraw the money and then go to SBI for depositing this money. By using vehicle, you are increasing the pollution in the environment. Today is 5th June 2010, the day of world environment. We can protect our environment by using e-banking. Just within 5 minute, we can transfer our money from HDFC bank to SBI bank through home e-banking facility.

3.Disadvantages (a)TraditionalBanking (i)Robbery Open any day newspaper, you will see the new bank robbery case.

This is the disadvantages. Two and more thieves came and taken bank's money is general news. No one can do same thing in ebanking. (ii)Time limitation Banks are opened from 9: 00 to 5:00 p.m. But, it may possible that we have to pay at 11:00 p.m. which can be done through e-banking not traditional banking.

(b)E-banking Hacking, spyware program, computer virus and breaking online password are the weakness of e-banking or online banking. Online big hackers are using computer virus and after spreading it, they compromise your computer. After this, they know all detail of your computer and banking password and illegally transfer all your money. Next day, your bank account may be zero. Even you can stop this crime by writing strong password but you can not remove it totally.

E-MARKETING

E-marketing:
e-Marketing or electronic marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms e-Marketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous. e-Marketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers. By such a definition, eMarketing encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and developing its brand identity. When implemented correctly, the return on investment (ROI) from eMarketing can far exceed that of traditional marketing strategies. Whether you’re a “bricks and mortar” business or a concern operating purely online, the Internet is a force that cannot be ignored. It can be a means to reach literally millions of people every year. It’s at the forefront of a redefinition of way businesses interact with their customers.

The benefits of eMarketing over traditional marketing:
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Reach:
The nature of the internet means businesses now have a truly global reach. While traditional media costs limit this kind of reach to huge multinationals, e-Marketing opens up new avenues for smaller businesses, on a much smaller budget, to access potential consumers from all over the world.

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Scope
Internet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide range of products and services. eMarketing includes, among other things, information management, public relations, customer service and sales. With the range of new technologies becoming available all the time, this scope can only grow.

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Interactivity
Whereas traditional marketing is largely about getting a brand’s message out there, eMarketing facilitates conversations between companies and consumers. With a two way communication channel,

companies can feed off of the responses of their consumers, making them more dynamic and adaptive.

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Immediacy
Internet marketing is able to, in ways never before imagined, provide an immediate impact. Imagine you’re reading your favourite magazine. You see a double-page advert for some new product or service, maybe BMW’s latest luxury sedan or Apple’s latest iPod offering. With this kind of traditional media, it’s not that easy for you, the consumer, to take the step from hearing about a product to actual acquisition. With eMarketing, it’s easy to make that step as simple as possible, meaning that within a few short clicks you could have booked a test drive or ordered the iPod. And all of this can happen regardless of normal office hours. Effectively, Internet marketing makes business hours 24 hours per day, 7 days per week for every week of the year.By closing the gap between providing information and eliciting a consumer reaction, the consumer’s buying cycle is speeded up and advertising spend can go much further in creating immediate leads.

5.Demographics and targeting
Generally speaking, the demographics of the Internet are a marketer’s dream. Internet users, considered as a group, have greater buying power and could perhaps be considered as a population group skewed towards the middle-classes. Buying power is not all though. The nature of the Internet is such that its users will tend to organise themselves into far more focussed groupings. Savvy marketers who know where to look can quite easily find access to the niche markets they wish to target. Marketing messages are most effective when they are presented directly to the audience most likely to be interested. The Internet creates the perfect environment for niche marketing to targeted groups.

6.Adaptivity and closed loop marketing
Closed Loop Marketing requires the constant measurement and analysis of the results of marketing initiatives. By continuously tracking the response and effectiveness of a campaign, the marketer can be far more dynamic in adapting to consumers’ wants and needs. With eMarketing, responses can be analysed in realtime and campaigns can be tweaked continuously. Combined with the immediacy of the Internet as a medium, this means that there’s minimal advertising spend wasted on less than effective campaigns.

Maximum marketing efficiency from eMarketing creates new opportunities to seize strategic competitive advantages.The combination of all these factors results in an improved ROI and ultimately, more customers, happier customers and an improved bottom line.

E-SHARE TRADING

Online share trading: The next big thing online India is a traditional society. Indian's are more conventional in nature. When it comes to technology we are far behind than rest of the world. Although we are having tradition for centuries we are enjoying freedom only for 62 years. Thanks to our white skin masters for imparting education upon us. Our culture is unique and we celebrate unity in diversity. We are forerunners among developing countries. India is a major player in the region economically we are more fit (thanks to the visionaries who had marched ahead). We are a thick populated society. India also holds a a unique stature in the world which is we are the youngest country in the world. Half of our population is in between the bracket 18-23. Which means we have huge potential in terms of everything. Some online statistics Online world is another world for everyone. As they showed us in matrix we will be confused which one is real. Internet offers so many facilities to it's users, we must congratulate bill gates and company for offering such a splendid facility to the mankind (or should we thank someone else). There may be difference of opinions but one thing is sure that once online world will become more prominent than the real

world (will all of us become machines speaking only 1&0, I simply can't imagine. Only 2 years before the internet using population in the world crossed 1 billion mark (oh my god 100 crores). Which simply means one in every six of world's population is clicking and the number is going up drastically. In India, the traditional and conventional, 50 million people uses internet and it grows like anything. By 2012 the number will be 81.3 million. (of course even more). Indian union also taken steps to encourage students to be online, internet education is part of curriculum in almost all the states. At least all of our people even heard about internet which is a big plus in this regard. Are you bull or bear

Now a days everyone (most probably) is aware about bull and bear, at least they can identify these terms as cliches related to stock market. More and more people in India, especially young people, are turning towards stock exchanges for investment. But statistics says that of it's massive population only less than 10 percent is involved in any kind of investment and who are investing in capital market the percentage is below 2. The capital market investment population in India is less than 2 crore. It seems more and more literacy is needed in this avenue of investment. The stock market investment crowd is concentrated in the upper class and upper middle class pie of the society. (Oh I heard someone saying to include the middle class-OK agreed). The rest 113 crore of the

people may or may not invest but they do not invest in stock markets as of now, but in the future we will be forced to redraw the picture. Online share trading During the early years of 90s National Stock Exchange of India started trading using v-sat connections. Those days which was a revolutionary change and was referred as online trading. (now also some misunderstands online trading with internet trading).In late 90 internet became popular in India and when 20 century became past internet use in India increased at it's maximum pace. With the emergence of new generation jobs people looked for new venues for investing and stock markets came first in the list. In 2004 when UPA government came into power stock market in india gained more popularity and lot of confidence had been imposed on it. During all these days ans now also offline share trading is the house full show. The traditional way of trading by visiting the branch, calling a call centre executive etc is called offline trading in which you need a persons assistance. Online trading (internet trading now refers) removed the second person before the screen and you and the system became the characters. This is the easiness that have been provided to the customer. If your bank also provides online facility you will be more relieved man. You don't want to step into a brokers office for anything everthing you want to do you can do at your home/office in your PC with internet connection. Within just three years online trading in NSE increased an unbelievable 13 percent. With in 3 years it is believed that the number of internet using facility will be double. On an average 34 percent of booking in railway is done through internet and 80 percent of airline booking have also gone online (online masthi isn't it). Reliance money, ICICI Direct, India Infoline, Geojit BNP Paribas, Sharekhan, Kotak Securities are the major brokers who are offering online trading facility to their clients. Some are offering online trading facility only otherwise customer have to call the call centre where as some otheres are offering both online and offline trading facilities. High speed execution, greater flexibility and control are the main advantages of online trading. The brokerage charges are less in online compared to offline trading. Customer can place orders even after the trading hours is another advantage of online trading. Real time tracking of stock prices is another advantage (you can easily skip the time delay in online trading-time means money honey)

Disadvantages:

The band width menace is the main menace considering online trading (it is believed that which will be solved when we enter 3G).When some big happenings in the stock market the brokers server will be down and the beloved customer will be at sea, staring at the monitor. The customer needs specific browsers and web configurations to view all the facilities provided by the broker like charts etc. If the customer is net savy he can deal online trading smoothly otherwise there will be no first aids from the broker. In this fast forward life online share trading is the need of the hour. The internet using community will increase day by day. Online share trading is aiming a long innings for sure (at least it is a cost effective method for the broker also-no need to pay an employee). When mobile and internet convergence take place things will drastically change. Mobile share trading will function full fledgly with in years. Convergence of technology only means advantage to the customer.

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