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BHUBANESWAR .MBA REGIONAL COLLEGE OF MANAGEMENT .
In the next level are Simple Transactional Websites which allow customers to submit their instructions. who deliver banking services primarily through Internet or other electronic delivery channels as the value added services. This form of banking is generally referred to as Internet Banking. The provision of banking services on a secure website operated by their retail or virtual bank. been using electronic and telecommunication networks for delivering a wide range of value added products and services. etc. With the popularity of PCs. public networks etc and the devices include telephone. the levels of banking services offered through INTERNET can be categorized in to three types: The Basic Level Service is the banks’ websites which disseminate1 information on different products and services offered to customers and members of public in general. They have. etc. It may receive and reply to customers’ queries through e-mail. Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their products. Broadly. subscribing to other products of the bank and to transact purchase and sale of securities. The third level of Internet banking services are offered by Fully Transactional Websites which allow the customers to operate on their accounts for transfer of funds. etc. etc.INTRODUCTION Banks have traditionally been in the forefront of harnessing technology to improve their operations including the Automated Teller Machines. over a long time. easy access to Internet and World Wide Web (WWW). Personal Computers including the Automated Teller Machines. services and efficiency. as an additional method of serving the customer or by new banks. private networks. payment of different bills. credit union or building society is referred to as internet banking Here the customers can access the data without time and geographical limitations. The delivery channels include direct dial – up connections. but do not permit any fund-based transactions on their accounts. The above forms of Internet banking services are offered by traditional banks. Some of these banks are known as ‘virtual’ banks or ‘Internet only’ banks and may not have any physical presence in a country despite the offering IMPORTANCE OF INTERNET BANKING . queries on their account balances. applications for different services.
you can see if there are any suspicious charges almost directly so you can defend your finances and personal information. but you are also saving on postage. Internet banking also offers you slightly more protection . We are regularly multitasking. The use of electronic banking has removed the banking personnel that facilitate the transactions and has placed additional responsibilities on the customers to transact with the service. busy. direct bill payment. . online banking is the future of electronic financial transactions. The evolution of electronic banking started from the use of automatic teller machines (ATM) and has passed through telephone banking. According to theorists customer evaluation of the electronic services is influenced by attributions of success and failure in inter personal service situations. The enormous thing is that you can relocate funds from account to account. You be able to keep an extremely watchful eye on the debits and credits that hit your account instantly. and there does not seem like there is ever enough time. busy mentality. Although the use of E-banking is provided for the benefit of the customers but these changes require increased work or involvement on the part of customers.Our civilization operates on a busy. By maintaining an eye on it. The fundamental shift towards the involvement of the customer in the financial service provision with the help of technology especially internet has helped in reduce costs of financial institutions as well as helped client to use the service at anytime and from virtually anywhere with access to an internet connection. With internet banking. The rise in the e-commerce and the use of internet in its facilitation along with the enhanced online security of transactions and sensitive information has been the core reasons for the penetration of online banking in everyday life . As an alternative of buying a stamp to send in your check. and perhaps the greatest benefit is that you know how to pay your charges online! You can have your charges sent electronically so that you are not just saving paper. Banks naturally have very tough hours for working adults to fit into their schedule. electronic fund transfer and the revolutionary online banking . check in on your balances. you be able to just transfer money directly into your account. The future of electronic banking according to some is the acceptance of WAP enabled banking and interactive-TV banking . But it has been forecasted that among all the categories. you can do your banking several day of the week at several hour of the day.
There are many activities are handled electronically due the acceptance of information technology at home as well as at workplace. ICICI bank was the first to initiate the internet banking revolution in india during 1997 under the brand name ”Infinity”. An analysis of technology and its uses show that it has permeated in almost every aspect of our life. that enable the user to execute bank related transactions through Internet. The transformation from the traditional banking towards internet banking has been a ‘leap' change.CONTEXT History of internet banking Internet banking can be defined as a facility provided by banking and financial institutions. During 1980’s there were certain developments such as: Rapid development of internet TCP/IP system E-commerce In May 1995 Wells Fargo-the first bank in the world to offer customer access to their accounts over the internet. The world is changing at a staggering rate and technology is considered to be the key driver for these changes around us. . Internet can be seen as a truly global phenomenon that has made time and distance irrelevant to many transactions.
performing a financial transaction such as an account to account transfer. etc. apply for a loan. Different services provided under internet banking are:Online bill payment Shopping Ticket booking Prepaid mobile recharge Market watch Personal home page Investment services Online applications Personal update . paying a bill.g. chat) Viewing recent transactions Downloading bank statements. online statements. including bill payments and telegraphic/wire transfers Funds transfers between a customer's own transactional account and savings accounts Investment purchase or sale Loan applications and transactions. such as importing data into personal accounting software. cobrowsing... wire transfer.FEATURES OF INTERNET BANKING Transactional (e. new account. for example in PDF format Viewing images of paid cheques Financial Institution Administration Management of multiple users having varying levels of authority Transaction approval process UNIQUE FEATURE personal financial management support. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.g.) Payments to third parties. such as repayments of enrollments Non-transactional (e. cheque links.
Communicative online banking allows for some communication between the patron and bank. withdrawals. new account updates. Communicative online banking may connect with the bank's main computer systems. this is typically limited to fundamental interactions such as account inquiries. updates and online payments. pay bills. receive and monitor money in their accounts. allowing their patrons to send. In recent years. Transactional Internet Banking-The most popular online banking type. There are types of internet banking such as:Informational Internet Banking. This is meant for marketing purposes only. secure and convenient. and there is no connection to the bank's main computer systems.This fundamental level of banking does not allow patrons to view or maintain accounts. especially in the case of mobile online banking. This includes full control over your accounts---deposits.Types of Internet Banking The advent of the World Wide Web in the mid-1990s brought information to our fingertips. hear weather reports. contact information updates and balances. . transactional Internet banking offers all of the benefits of a traditional brick-and-mortar institution. both Internet-based and traditional brick-and-mortar banks have set up shop online. we can shop. Increased security measures now make Internet banking safe. Using the Internet. play interactive games and keep abreast of breaking news. Informational Internet banking simply means the bank provides basic information about its products and services. loan or mortgage applications. much like a brochure. Communicative Online Banking. However. transfers. nor does it allow for communication between the financial institution and customers.
Process of internet banking Opening the bank’s website Selecting the option which provides Internet Banking Enter the user-Id and Password/PIN Perform the requisite transactions Logout .
MOBILE BANKING It refers to the banking activity that are carried out on mobile phone. system in order to activate a particular service. .TECHNOLOGIES RELATED TO INTERNET BANKING The technologies are: Telephone banking Mobile banking IVR ATM EFT AFT TELEPHONE BANKING When banking and financial services are delivered to the customer of a bank through the It uses AVR(automated voice response) In this technology a customer uses the tone-phone to send digitized data messages to the medium of telephone is called as telephone. the system contains software to recognize the tone/word. Current Mobile Banking Applications: SMS Banking WAP Banking STK (Sim Toolkit) Banking o o o IVR Interactive Voice Response (IVR) is a software application that accepts a combination of voice telephone input and touch-tone keypad selection and provides appropriate responses in the form of voice IVR has come into our life at the beginnings of 90’s.
. and less expensive than paper check payments and collections. EFT is safe. the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip. and check their account balances as well as purchase prepaid cellphone credit. ELECTRONIC FUND TRANSFER Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands. One of the most widely-used EFT programs is Direct Deposit. Using an ATM. that contains a unique card number and some security information such as an expiration date or CVVC (CVV). secure. in which payroll is deposited straight into an employee's bank account. Authentication is provided by the customer entering a personal identification number (PIN). credit card cash advances. AUTOMATED FUND TRANSFER The automatic funds transfer is a financial transaction that ensures funds are sent and received on schedule without the need for human intervention. First step in Telephone Banking Peak transaction volume in salary payment days for balance inquiry Integrated with ATM system ATM(AUTOMATED TELLER MACHINE) On most modern ATMs. customers can access their bank accounts in order to make cash withdrawals. efficient.
These token generated TANs depend on the time and a unique secret. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium. To protect their systems against Trojan horses. so that there is no additional encryption needed.SECURITY MEASURES There exist two different security methods for online banking. Another way to provide TANs to an online banking user. 2. a. 1. The SMS text usually quotes the transaction amount and details. TANs can be distributed in different ways. Signature based online banking where all transactions are signed and encrypted digitally. users should use virus scanners and be careful with downloaded software or e-mail attachments . COUNTER MEASURES There exist several countermeasures which try to avoid attacks. the most popular one is to send a list of TANs to the online banking user by postal letter. Especially in Germany and Austria. The PIN/TAN system where the PIN represents a password. many banks have adapted this "SMS TAN" service as it is considered as very secure. is to send the TAN of the current bank transaction to the user's (GSM) mobile phone via SMS. Usually online banking with PIN/TAN is done via a web browser using SSL secured connections. The most secure way of using TANs is to generate them by need using a security token. used for the login and TANs representing one-time passwords to authenticate transactions. the TAN is only valid for a short period of time. depending on the concrete implementation. the use of class-3 card readers is a measure to avoid manipulation of transactions by the software in signature based online banking variants. b. stored in the security token (this is called two-factor authentication or 2FA). Digital certificates are used against phishing and pharming.
The web server is connected to the internet. To the web server the BANK SERVER is connected. . Banks access the customer database and then get connected to the web server for the transactions.ARCHITECTURE In the internet architecture there is a WEB SERVER. Firewalls are used for the protection.
PC Magazine Online also offers a primer: How Encryption Works. A multi-layered security architecture comprising firewalls. There is a dual requirement to protect customers' privacy and protect against fraud. Digital certification procedures provide the assurance that the data you receive is from the Infinity system.MAIN CONCERNS IN INTERNET BANKING In a survey conducted by the Online Banking Association. encryption and digital certification ensures that your account information is protected from unauthorised access: Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to Encryption techniques used by the bank (including the sophisticated public key access the system. filtering routers. . encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected. member institutions rated security as the most important issue of online banking. Banking Securely: Online Banking via the World Wide Web provides an overview of Internet commerce and how one company handles secure banking for its financial institution clients and their customers. Some basic information on the transmission of confidential data is presented in Security and Encryption on the Web.
3.communicate easily Environmental-abolishing the uses of paper .reducing transfer fees Speed. 2. BENEFITS FOR SMALL TO MEDIUM BUSINESS to run its operations more effectively lower cost than traditional financial management mechanisms.faster circulation of assets Competitiveness-fostering competition in financial market.ADVANTAGES OF INTERNET BANKING 1. BENEFITS FOR CUSTOMERS Convenience-24 hrs a day and 7 days a week Cost.BENEFITS FOR BANKS Large customer coverage Lower cast of operation International promotion of products and services Increasing customer satisfaction and providing personalized relationship with customers. Communication.
Many people shy away from internet banking because of the security threat. they may still have this doubt whether or not they did the right thing such as clicked the right button and so on.Many people still don't trust the internet. 2. They can only be comfortable once they print the transaction receipt and the transaction appeared on the bank statement. Impersonal. this should not be a problem as banks that provide internet banking services prioritize security above anything else. navigating through a website of an internet bank may be hard and may take some time.. Bank site changes.Doing transactions on the internet can be very impersonal. Lack of trust. Since they value their customers. In other words. to help the client in his or her needed tasks so it's best to take the time to know the virtual environment. Despite the growing popularity of internet banking. No individual to receive and check your money or correct some wrong information that you might have written on a certain form.. However. Tutorials and live customer support may be provided. the bank may ask customers to re-enter account information which can be a cause of worry.For a first time user. 4. they always use the most advanced security technology in protecting their websites. internet banking is not ideal. you only do business with the use of a computer. Some of the disadvantages are :1. They can't help but worry about this aspect what with news on fraudulent bank transactions that pop up every now and then. .Most banks upgrade their online programs on a periodic basis sometimes adding new features and products. And so for people comfortable dealing with real people who provide personalized services and using paper and money. Security fraud.DISADVANTAGES OF INTERNET BANKING Internet banking services provide a number of benefits to consumers. they may be discouraged to use this internet banking service. Opening an account could also take time as some sites ask for numerous personal details including a photo identification which can inconvenience the potential customer. 5. it cannot be denied that some people still remain hesitant doing transactions online especially where money is concerned. For the new users who have performed financial transactions for only a few times. When this happens. Difficult for first timers. Because of this complexity. 3. though.
This includes being unable to withdraw money from ATMs or to use your debit card. Fraudsters can lure you to enter your user ID and password at a fake website that resembles your bank. personal data is stolen through hacking. 5. Accessibility. The number and password are then used to carry out transactions on their behalf without their knowledge. Never reveal password to anyone. Securing your account Here are some simple tips to prevent you from falling into the trap of cyber criminals. Do not even write it on a piece of paper on diary. Check sites Url Always check the URL of your bank's web site. 4. 3. Always type the Web address of your bank into the browser address space. Avoid online banking on unsecured wifi systems and operate only from PCs at home. TIPS TO AVOID INTERNET BANKING FRAUDS The various ways to avoid interbanking frauds are:1. Hacking Here. Never reply to queries from bank online about account or personal details. Also. kid's or spouse's name and telephone numbers. it has to be fake.If the Internet goes down in your area or the area of the banking office. a simple ignorance or oversight can make a huge dent in your hard-earned savings. like first names. They are asked to provide all personal information about themselves and their account to the bank on the pretext of database upgradation. It should be alphanemeric and change it frequently. Never click on the link in the email.6. The fraudster needs to be an adept cyber criminal who can steal information stored or transacted in any computer. Never enter your user ID or password or such sensitive information without ascertaining that you are on the right website. 2. If you see anything other than the bank's genuine URL. birthdays. The personal information should not be kept in a public computer or in emails. avoid easy-to-guess passwords. a spyware is installed in computer to gain access to all files. who float a site similar to that of the person's bank. Try to have an alpha- . Remember. Sometimes. Phishing A person's personal details are obtained by fraudsters posing as bankers. you will be unable to access your accounts. Full-proof password Change your online banking password at regular intervals. Just memorise it.
numeric password. This little amount of `finger exercise' will go a long way in safety. one that combines alphabets and numbers. 9. If you notice irregularities (like you are logging in after two days. where privacy and security are minimal." CONCLUSION . avoid locations that offer online connections through wireless networks (Wi-Fi). Public access can be injurious Don't leave the PC unattended after keying in information while transacting on the website. 6. Never exit simply by closing the browser. Most security updates are aimed at reducing risks to your computer. especially if you connect to the Internet through a cable or a DSL modem. these may be data-related or otherwise. never paste your password. Also. The fraud here takes advantage of unsecured cyber cafes. using Net banking services at cyber cafes leaves one vulnerable to data thieves. Install a personal firewall to prevent hackers from gaining unauthorised access to your computer. the cafe owners are hand-in-glove with the thugs. Always log out when you exit the online banking portal. 7. Close the browser to ensure that your secure session is terminated. And. Keep your system up to date Regularly check for security updates for your computer operating system. If your bank has it. If you have several bank accounts. Never select the option on browser that stores or retains user name and password. always install these only from trusted websites. report the matter immediately to your bank and change your password right away. Also. 8. As it can easily be cracked by cyber criminals. Make sure that your operating system and browser have the latest security patches installed. "Sometimes. always type it in. Avoid accessing your bank online at cyber cafes or on a share or public computer. Another modus operandi adopted by cheats these days is stealing data from public computers or shared PCs. but the panel says you logged in that morning!). check the panel whenever you log in. A police office says. Always check 'last logged' Most banks have a 'last logged in' panel on their websites. Public PCs Also. never use the same online banking password for all.
it is having unprecedented growth. CDs. Web based banking service or E-Banking. security is a primary concern. easier and more reliable service to clients It helps in the development of Corporate image Exceptional rates on Savings. The strategy for banks is to provide value-added services to products to customers utilizing the Internet extensively. focused on retaining clients In Internet banking. free bill payment and rebates on ATM surcharges It facilitates faster. has opened up new window of opportunity to the banks and existing financial institutions. Since its evolution in 90th decade. the number of users will explode”. including personal loans and mortgages 24 hour account access Quality customer service with personal attention The potential of “E-banking is huge. REFERENCES . the latest generation of banking transactions.More and more banks are coming to realize that internet is a part of banks' alternative delivery channel strategies activities concentrated in the business-to-consumer segment. Security concerns have been addressed from every angle within the architecture of the Internet banking application Internet banking is now being widely accepted because of the following reasons:It accelerates the process of creating new markets It Reduces operational costs and workforce Checking with no monthly fee. With the increase in connectivity. and IRAs Credit cards with low rates Easy online applications for all accounts.
authorstream.Dr.Shekhar Lekshmy Shekhar Banking By.K.Gurusamy Banking Theory By.com www.com www.com www. Srivastava .ibkgintro. www.C.K. P.slideshare.google.Gordon and Natrajan Banking Theory and Practice By.com Banking in the new millennium By-S.
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