E-BANKING :SURGES A HEAD IN INDIAN BANKING SECTOR

SURGES A HEAD IN INDIAN BANKING SECTOR

Introduction Review of Literature

Objectives of the Study

Conclusion

Banking is one of the oldest professions known to mankind. It has undergone many a transition and internet banking is the latest in the list of such transformations.

Internet banking brought a 360 degree change in the entire

banking industry. made shopping and bill payment easy

Such is the change in scenario that timing is no longer a constraint and you can finish your day-today chores and bank leisurely when you have the time.

Jeevan (2000) observed that the internet banking enables banks to offer low cost and high value added financial services.

Hasan (2002) found that online home banking has came out as a significant strategy for banks to attract and retain customers

Mishra (2005) in his paper explained the advantages and the security concerns about internet banking.

Nyangosi et al. (2009) collected customers'

opinions regarding the importance of e-Banking and the adoption levels of different e-Banking technologies in India and Kenya.

significance of e-banking in the present scenario

benefits of E-Banking

popular services covered under e-banking

risks involved in internet banking

Internet Banking - A Vehicle:-

Internet banking acts as a vehicle that delivers your banking needs to right where you are

information about account and transactions facility to give requests and applications to a

bank flexibility of fund transfer 24X7

E-banking helps us in overcoming the drawbacks of manual system

To the Banks1. increasing profits2. boundary less network to the banks3. cost of storage of currency notes and coins is

eliminated.4. risk of cash overdraw can be eliminated in case of

ATM credit and debit cards.

BANKERS’ PERSPECTIVES…1. Generates revenue through its promotional

activities.2. invest more on building infrastructures is saved3. Websites that offer financial convergence for the

customer will create a more involved banking customer who will more frequently utilize the banking websites.

To the Customers1. 24 hours service2. Quick and steady access to information.3. Online purchase of goods , services and

payments.4. The customer can view his account balance and

collect information regarding investments, interest rates etc.

To the Merchants, Traders, etc.1. assures quick payment and settlement 2. variety of services to the businessmen 3. Cost and risk problems involved in handling

cashier avoided.4. It leads to the growth of global and local clientele5. improved image, improved customer service,

eliminating paper work, reduced waiting costs and enhanced flexibility.

Functions of internet banking:-

1. data related to their accounts can be accessed from any point where internet facility is available.

2. transfer of money from a customer’s account to another person’s account in a different or same bank, payment of utility bills

Security and operation:-

o There are set of regulations laid down by Reserve Bank of India, that guide banks on the security aspects of internet banking.

o The banks are bound to maintain certain security policies related to internet banking that are approved by the managing directors of the bank.

Security and operation:-Transfer of fund is done through two basic modes. 1.Real Time Gross Settlement transaction to an account takes place more

spontaneously this mode of transaction can be used for

transactions above Rs 2 lakh

Security and operation:-2. National Electronic Funds Transfer transaction takes place in batches in specified

regular intervals of time.

Automated teller machines

Credit Cards

Debit Cards

Smart Cards

Electronic Funds Transfer (EFT) System

Cheques Transaction Payment System

Mobile Banking

Internet Banking

Telephone Banking etc.

Phishing

Viruses

Key logging

Pharming

Identity theft by card skimming

The net banking should be availed from personal computer only

The address of the site of the bank should be typed , links should be avoided

It is good to provide relevant details of the user ID and password only in relevant pages of banking site.

From the end-user's perspective, the service quality will improve.

"Core banking facilitates anytime, anywhere banking. Customers can check their account balance, pay bills and make investments throughout the day."

In short, they will have complete control over their finances and hence, the power to take decisions.

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