COMMERCE PROJECT

DIGITAL BANKING

NAME: Sneha Gupta

Class: XII – C
Roll NO : 23
School: Seth Anandram Jaipuria School
 INDEX
TOPIC SLIDE NO.
1. Acknowledgement 4
2. Introduction 5
3. Types of Digital banking 6
7-10
4. Real Time Gross Settlement
11-14
5. National electronic fund transfer
15-18
6. Immediate Payment Services
19-22
7. Electronic Banking
23-25
8. Bank Draft
26
9. Impact on Consumers
27
10. Pros of Digital Banking on Consumers
28
11. Cons of Digital banking on consumers 29
12. Conclusion 30
13. Bibliography
 Acknowledgement

• I would like to express my special thanks of gratitude to my teacher

Mrs. Neha Dixit who gave the golden opportunity to do this wonderful
project of Commerce on “Digital Banking”, through this project I came
to know about many new things . Secondly I would like to thank my
parents and friends who helped me a lot in finalizing this project
within the limited time frame.
 Introduction
Digital banking is part of the broader
context for the move to
online banking, where banking
services are delivered over the
internet. The shift from traditional to
digital banking has been gradual and
remains on-going, and is constituted
by differing degrees of banking
service digitization. Digital banking
involves high levels of process
automation and web-based services
and may include APIs enabling
cross-institutional service
composition to deliver banking
products and provide transactions.
 Types of Digital Banking
• Real time gross settlement
• National electronic fund transfer
• Immediate payment service
• Electronic Banking
• Bank Draft
 Real Time Gross Settlement
Real Time Gross Settlement,
abbreviated as RTGS systems are
specialist funds transfer systems where
the transfer of money or securities takes
place from one bank to any other bank on
a "real-time" and on a "gross" basis.
Settlement in "real time" means a payment
transaction is not subjected to any waiting
period, with transactions being settled as
soon as they are processed.
"Gross settlement" means the transaction
is settled on a one-to-one basis, without
bundling or netting with any other
transaction. "Settlement" means that once
processed, payments are final and
irrevocable.
 RTGS (more info)
• RTGS systems are usually operated by a country's central bank as it
is seen as a critical infrastructure for a country's economy.
Economists believe that an efficient national payment system reduces
the cost of exchanging goods and services, and is indispensable to
the functioning of the interbank, money, and capital markets. A weak
payment system may severely drag on the stability and
developmental capacity of a national economy; its failures can result
in inefficient use of financial resources, inequitable risk-sharing
among agents, actual losses for participants, and loss of confidence
in the financial system and in the very use of money.
National electronic fund transfer
• NEFT is a countrywide system by
which an individual, firm or
company can electronically
transfer funds from any bank to
another individual , firm or
company having an account with
any other bank branch in the
country . The funds transfer take
place at a particular period of
time .
NEFT (more info)
• National Electronic Funds Transfer (NEFT) is an
electronic funds transfer system maintained by the
Reserve Bank of India (RBI). Started in November 2005, the setup was
established and maintained by
Institute for Development and Research in Banking Technology. NEFT
enables bank customers in India to transfer funds between any two
NEFT-enabled bank accounts on a one-to-one basis. It is done via
electronic messages.
• Unlike real-time gross settlement, fund transfers through the NEFT
system do not occur in real-time basis. Previously, NEFT system
settled fund transfers in hourly batches with 23 settlements occurring
between 00:30 hrs. to 00:00 hrs.
Immediate Payment Services
• Immediate Payment Service is an
instant money transfer service
facilitated by NPCI . It allows
people to send and receive funds
in real time .
• The facilities inter-bank
transactions through mobile and
internet banking. This has become
a highly preferred mode for
transferring funds for the large
population of the country.
IMPS (more info)
• Immediate Payment Service (IMPS) is an instant payment inter-
bank electronic funds transfer system in India. IMPS offers an inter-
bank electronic fund transfer service through mobile phones.
• The service is available 24x7 throughout the year including bank
holidays. NEFT was also made available 24x7 from December 2019.
RTGS was also made available 24x7 from 14th December 2020.
• It is managed by the National Payments
 Electronic Banking

• Electronic Banking means banking

transactions carried out with the
help of computer systems . Any
user having PC and Browser can
access the bank website and avail
of banking services
Electronic Banking
• Online banking, also known as internet banking, web banking or
home banking, is an electronic payment system that enables
customers of a bank or other financial institution to conduct a range of
financial transactions through the financial institution's website.
• The online banking system will typically connect to or be part of the
core banking system operated by a bank to provide customers
access to banking services in place of traditional branch banking.
• Internet banking provides personal and corporate banking services
offering features such as viewing account balances, obtaining
statements, checking recent transactions, transferring money
between accounts, and making payments.
 Impact on Users
• Customer satisfaction is a measure of how products and services sup
plied by a company meet or surpass customer expectation. Customer
satisfaction is also defined as
“the number of customers, or percentage of total customers, whose
reported experience with a firm, its products or its services exceeds
specified satisfaction goals .
• And yet another definition of customer satisfaction is it refers to the
extent to which customers are happy with the products and/or
services provided by a business. Further definition of customer
satisfaction is it is a term generally used to measure a customer’s
perception of a company’s products and/or services.
• It’s not a straight forward science however, as customer satisfaction
will vary from person to person, depending on a whole host of
variables which may be both psychological and physical.
Benefits of Digital Banking to Consumers
• Users carry out banking work around the clock, with 24*7
availability of access to banking functions.
• Banking has become paperless with the development of digital
banking as a service
• Digital banking allows a user to set up automatic payments for
regular utility bills such as electricity, gas, phone, and credit cards.
• Digital banking extending services to remote areas is seemingly a
step toward holistic development.
• Reduce the risk of counterfeit currency.
Disadvantages of Digital Banking to Consumers

• Digital banking forums are prone to vulnerabilities and hacks such as

phishing, pharming, identity theft, and keylogging, banking institutions
are investing a lot in their security systems.
• If there’s a power outage, or if servers go down, you might not have
any access to your account whatsoever.
• With an online bank, you can’t simply drop off cash or a check at a
local branch.
• Inefficient at Complex Transactions.
 Conclusion
• The study contributes to a bunch of literature on the
Internet banking diffusion mainly with referring to
individual level data on behavioral variables (particularly
number of transactions and amounts of money kept on
banking accounts). While previous literature investigated
mostly the aggregate effect of e-banking introduction on
banking performance.
 Bibliography
• S Chand's ISC Commerce Class XII (2021 Edition)
Book by C B Gupta.
• https://www.temenos.com
• https://www.bankbazaar.com