internet banking 254.docx

7/29/2019 internet banking 254.docx

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Index

1. Introduction

What is internet banking

Features of internet banking

Benefits of internet banking

Services offered by internet banking

2. Advantages of internet banking

3. Disadvantages of internet banking

4. security

5. Future of internet banking

6. Conclusion


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Introduction

Internet banking (oronline banking orE-banking) allows customers of a

financial institution to conduct financial transactions on a secure website

operated by the institution, which can be a retail orvirtual bank, creditunion orbuilding society.

To access a financial institution's online banking facility, a customer having

personal Internet access must register with the institution for the service,

and set up some password (under various names) for customer verification.

The password for online banking is normally not the same as fortelephone

banking. Financial institutions now routinely allocate customer numbers

(also under various names), whether or not customers intend to access

their online banking facility. Customer numbers are normally not the same

as account numbers, because a number of accounts can be linked to the

one customer number. The customer will link to the customer number any

of those accounts which the customer controls, which may be cheque,

savings, loan, credit card and other accounts.

To access online banking, the customer would go to the financial

institution's website, and enter the online banking facility using the

customer number and password. Some financial institutions have set up

additional security steps for access, but there is no consistency to the

approach adopted.

Internet banking (or E-banking) means any user with a personal

computer and a browser can get connected to his banks website to

perform any of the virtual banking functions. Internet banking system the

bank has a centralized database that is web-enabled. A l l the

ser vic es t hat the bank has perm it t ed o n the internet are

displayed in menu. Any service can be selected and further

interaction is dictated by the nature of service. Once the branchoffices of bank are interconnected through

t e r r e s t r i a l o r s a t e l l i t e l i n k s , t h e r e w o u l d b e n o p h y s i

c a l i d e n t i t y f o r a n y branch. It would a borderless entity permitting

anytime, anywhere and anyhow banking. The delivery channels include

direct dialup connections.
http://en.wikipedia.org/wiki/Retail_bankhttp://en.wikipedia.org/wiki/Virtual_bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Virtual_bankhttp://en.wikipedia.org/wiki/Retail_bank


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p r i v a t e n e t w o r k s , p u b l i c n e t w o r k s , e t c . w i t h t h e p o p u l

a r i t y o f computers, easy access to Internet and World Wide Web

(WWW),Internet is increasingly used by banks as a channel for

receiving inst r uct ion s a nd de l iver ing the i r product s an d

serv ices tothe i rc u s t o m e r s . T h i s f o r m o f b a n k i n g i s g e n e r a l l y

r e f e r r e d t o a s I n te rn et B an ki n g, a lt h ou gh t he r an ge o f

p roducts and serv ices o f fe red by d i f fe ren t banks vary

wi de ly bo th in th ei r co nt en t an d sophistication.

United Online is the name of Internet Banking service of UnitedBank of India. The service is highly secure as it uses 256 bit SSLencryption for the data transmission through internet.

internet banking is the electronic bank that provides the financialservice for the individual client by means of Internet.

different services, queries in their account balances, etc. but donot permit any fund-based transactions on their accounts;3. Thethird level of Internet banking service are offered by FullyTransactional Web sites which allow the customers to operate on

their accounts for transfer of funds, payment of different bills,subscribing to other products of the bank and to transactpurchase and sale of securities, etc. The above forms of Internetbanking service the customer or by new banks, who deliverbanking service primarily through Internet or other electronicdelivery channels as the value added services. Some of thesebanks are known as Virtual banks orInternet only banks andmay not have physical presence in a country despite offeringdifferent banking services. The Indian Scenario: -

Internet banking, both as a medium of delivery of bankingservices and as a strategic tool for business development.

At present, the total internet users in the country are estimatedat 9 lakh. However, this is expected to grow exponentially to 90


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lakh by 2003. Only about 1 percent of Internet users did bankingonline in 1998. This is increased to16.7 percent in March 2000.-(India Research, May 29, 2000, Kotak Securities)

Cost of banking service through the Internet from a fraction ofcosts through conventional methods. Rough estimates assumeteller cost at Re.1 per transaction, ATM transaction cost at 45paise, phone banking at 35 paise, debit cards at 20paise andInternet banking at 10 paise per transaction


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Features

1. Bill Pay Service - One of the biggest reasons for going with an onlinebank is to get really good bill payment services. Different banks handle

bill payment different ways. Here are some things to think about:a. How many bills are you allowed to pay per month?b. What are the fees for going over the limit?c. Can the bill payment send physical checks to merchants who arent

set up to take electronic payments?d. Do checks come from your account or from a third party service? For

privacy reasons, it might be better to be able to pay someone withoutgiving them your bank account number on the check. On the otherhand, if the checks actually come from your account, the money

doesnt get taken out until the check is cashed.e. Can you set up reoccurring payments?

2. Electronic Bill Notification With electronic bills, your merchant (creditcard company, gas company, electric company, etc.) sends anelectronic bill to your bank. You can set it up to pay automatically ornotify you for approval. This can be particularly good for people who areon the road because it reduces the amount of physical mail you have tosomehow get read or forwarded to you.

3. Online Check Images Most banks will show you an image of the

check, which makes it really easy to balance your account if you cantremember what a particular payment was for. (Ideally, you shouldminimize the number of physical checks you write toreduce fraud.)

4. Online Deposit Slip Images Most banks just record the total with noimage. It will let you see an image of each deposit slip. Having theimages available can be very helpful if you ever have to provesomething for tax purposes or need to remember where that $2581deposit came from.

5. Ease of Opening New Accounts Once you have an account at the

bank, you should be able to open additional accounts entirely online andjust transfer money into it. For example, I set up a traditional IRA lastyear and it took me about 3 minutes to set up, deposit my money fromchecking and invest it in an index fund.

6. Reporting Tools Most banks offer basic reporting tools that will letyou see how much you have spent in each category youve created.
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This may not be an issue if you use desktop moneymanagementsoftware, but it still can be handy if you are traveling andwant to see how much youve paid on your mortgage over the past 12

months.

7. Linked Accounts Can you link your bank account with a brokerageaccount? Can you add your minor children as custodial accounts andmanage them all centrally? If you and your spouse both set them upIRAs, is it easy to view them both along side the rest of your finances, ordo you have to have a separate login for each IRA to keep them onseparate SSNs? These are small things that many banks dont support,

but it starts getting really complicated when you have to manage abunch of accounts instead of having a single place to manage all of yourmoney.

8. Convenient Deposit Methods - Since you may not be anywhere nearthe physical location of your bank, make sure you understand how todeposit money. Payroll can be set up on direct deposit, but there will betimes when you need to deposit checks. Does the bank provide postagepaid envelopes and deposit slips? Some banks work with FedEx or UPSstores to allow you to send in a deposit overnight for free.

9. Low ATM Fees and Convenient Locations If you need to get cash,will the bank refund the ATM fees? Are there only certain ATMs that arefree, and if so, are they located near places you normally go? Are the

ATMs available nation wide so you can use them on vacation? What arethe fees for using the ATM internationally and how is the exchange ratehandled?

10. Integration with Desktop Software If you use Microsoft Money,Quicken or something similar, youll want to make sure your bank

supports it. Make sure you understand if downloading transactionsrequire you to login and manually download a file, or if your moneymanagement software can directly connect and download newtransactions. If you are using Quicken on a Mac, make sure the bank is

payingQuickens extortion feeso the files will work with Mac users.11. Many Account Types Some banks only offer basic checking and

savings accounts. Ideally you want a bank that makes it easy to openmoney market accounts, IRAs, health savings accounts, etc. If you haveto go to another institution to open a different type of account, it is moredifficult to manageespecially if you are on the road. You want to be able
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to easily open a CD to take advantage of a higher interest rate, easilyopen an IRAto help reduce your tax liability, etc.

12. Free Money Transfers Be sure to consider how easy it is to movemoney in and out of the account. You should be able to set up links with

your accounts from other institutions to transfer money back and forth asnecessary. Make sure you understand what type of fees are associatedwith these transfers. Good banks should allow a certain number oftransfers per month with no fee.

13. Security Balanced with Convenience - Some banks spend somuch effort trying to keep things secure that youll find yourselfautomatically logged out of their website while you try to balance youraccount. You want security but you dont want it to get in the way of you

doing your banking. Also check into what type of additional security

features are available. For example, some banks will offer you an RSAkeychain with a number that changes every 60 seconds. In addition toyour password, you will need the number from that key in order to getaccess to your account.

14. Ease of Use This is something that most banks seem to strugglewith. Right now I have my personal account with one online bank andmy business accounts with another. I dread using the business accountsand I absolutely love using my personal account. At first I thought I was

just more familiar with the bank where my personal accounts are, but I

finally realize that it comes down to the ease of use. One is ok and theother is superb, but it makes a big difference.

FEATURES OF INTERNET BANKING Transactional (e.g., performing a financialtransaction such as an account to account transfer, paying a bill, wiretransfer... and applications... apply for a loan, new account, etc.). This isthe most common functionality that is extensively used by bankingconsumers. Non-transactional (e.g., online statements, check links, chat)Financial Institution Administration - features allowing the financialinstitution to manage the online experience of their end users ASP/Hosting

Administration - features allowing the hosting company to administer thesolution across financial institutions

Online banking facilities offered by various financial institutions have manyfeatures and capabilities in common, but also have some that areapplication specific.

The common features fall broadly in to several categories
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A bank customer can perform some non-transactional tasks throughonline banking, including -

viewing account balances

viewing recent transactions

downloading bank statements, for example in PDF format viewing images of paid cheques

ordering cheque books

Bank customers can transact banking tasks through online banking,including -

Funds transfers between the customer's linked accounts

Paying third parties, including bill payments (see, e.g., BPAY) and

telegraphic/wire transfers

Investment purchase or sale

Loan applications and transactions, such as repayments of

enrollments

Financial institution administration

Management of multiple users having varying levels of authority

Transaction approval process

Some financial institutions offer unique Internet banking services, for

example

Personal financial management support, such as importing data intopersonal accountingsoftware. Some online banking platformssupport account aggregation to allow the customers to monitor all oftheir accounts in one place whether they are with their main bank or withother institutions.
http://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Account_aggregationhttp://en.wikipedia.org/wiki/Account_aggregationhttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Bank_statement


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Benefits of internet banking

Internet banking is all about making life easy. You can usetechnology to automate tedious tasks and save time for the more

important things. As an added benefit, you often experience fewererrors and have an easier time of tracking things. Online banks allowyou to have more choice and flexibility. You can do things on acomputer, and you often get more competitive rates from onlinebanks. They claim that they do not have the overhead and expensesassociated with brick-and-mortar banks, so they can pass the savingson to you. Online banking makes our lives easier. However, it alsomakes a few things easier for criminals. For the most part, onlinebanking actually makes you safer. While you can enjoy better returns

and more convenience, online banking isnt perfect. Set yourexpectations on what you have to give up in order to enjoy thebenefits of online banking.BENEFITS OF INTERNET BANKING CONVENIENCE

available 24x7 (except for site maintenance) FREE (for most transactions) FAST (depends on internet bandwidth) RELIABLE (relies on security settings instituted by the bank) SECURE (two-level log-in measure) There are many benefits of using net banking like

It saves a lot of time and effort. Can transact with the click of a button. Completely safe and secure. Fewer fees with most of the services rendered free. Can coordinate with your financial software. Easy to understand and to use. Scores more points over traditional banking. Useful for everyone.

That's why internet banking is a popular service now usedby millions of account holders worldwide. Now with the fastgrowth in the number of users opting for it, a number ofonline banks are building up to provide service to thecustomers.


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These online only banks are virtual but provide qualityservice to customers offering them with many new andexciting features. However, when you apply for service from

a particular bank, try to get as much as information about itbefore doing business with them. Ask questions till the timeyou get satisfied with the service record of the company.


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Services offered by internet banking

Queries

Check Balance See Statement Inquire about cheque status Ask for a Statement Ask for a Cheque Book Inquire about Fixed Deposit Inquire about TDS details See Demat Account Update profile

Transactions

Stop a Cheque Pay Bills Ask for a Demand Draft Transfer funds between your accounts Transfer funds to a third party Request for a new Fixed Deposit Shop Online

Pay Bank Credit Card Dues

There are four types of plastic cards being used as media formaking payments. These are:Plastic Cards as Media for Payment: -

1. Credit Card

2. Debit Card3. Smart Card4. ATM Card

1. Credit Cards: - The credit card enables the cardholdersto Purchase any item like clothes, jewelery, railway/air tickets,


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etc. Pay bills for dining in a restaurant or boarding and lodging inhotel Avail of any service like car rental, etc.

2. Debit Cards: -A debit card is issued on payment of a specified

amount by the issuing company like a telephone company to acustomer on cash payment or on debiting his account by abank. Thus it is like an electronic purse, which can be read anddebited by the required amount. It may be noted that whilethrough a credit card, the customer first makes a purchase oravails service and pays later on, but forgetting the debit card, acustomer has to first pay the due amount and then make apurchase or avail the service. For this reason, debit card are notas popular as credit cards.

3. Smart Cards: -Smart Cards have a built-in microcomputerchip, which can be used for storing and processing information.For example, a person can have a smart card from a bank withthe specified amount stored electronically on it. As he goes onmaking transactions with the help of the card, the balance keepson reducing electronically. When the specified amount is utilizedby the customer, he can approach the bank to get his cardvalidated for a further specified amount. Such cards are used for

paying small amounts like telephone calls, petrol bills, etc.

4. ATM Cards: - The card contains a PIN (Personal IdentificationNumber) which is selected by the customer or conveyed to thecustomer and enables him to withdraw cash up to the transactionlimit for the day. He can also deposit cash or cheque.

Mobile banking

Transfer money, pay bills, authorize payments, view your transaction

history all from the convenience of your mobile phone.

With BOQ's latest electronic banking offering your mobile phone can now act asyour own portable bank working with Internet banking to provide access to andcontrol of all your accounts


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Transfers

Transfer funds between your accounts and credit cards.

Transfers between your nominated accounts are subject to any deposit

and withdrawal limits that would normally apply. A transfer from yourcredit card will be treated as a cash advance. Withdrawal transfers arenot allowed from some home loans, business loans, personal loans andPremier term investment accounts.

Pay bills with BPAY

You can use BPAY to pay many of your household bills (e.g. gas,electricity, telephone). Just look for the distinctive BPAY logo on your billto tell if it can be paid using Internet Banking. You can also keep thepayment details for bills that you pay regularly on a frequent billers list.

You can make a BPAY payment from your account or your credit card. Ifthe biller does not accept credit card payments then the payment may betreated as a cash advance.

Before you can use this service, you will need to choose your Daily Limitspackage. Any BPAY payments will be subject to your daily BPAY limit.

Receive bills online with BPAY View

Using the BPAY View facility, you will have the ability to view billselectronically from participating billers through Internet Banking.

Once you register with the relevant billers, you will be advised each timeyou log on if any new bills are available. You can also be notified viaInternet email and/or via secure mail when a new BPAY View bill isdelivered.

Pay Anyone Payments

Use Pay Anyone to make payments to a BOQ account or to accounts heldat most other Australian financial institutions. You can also keep thepayment details for payees that you pay regularly on a frequent payeeslist.

Before you can use this service, you will need to choose your Daily Limits


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package. Any Pay Anyone Payments will be subject to your daily PayAnyone limit. You can make a Pay Anyone Payment from your account oryour credit card. A credit card payment will be treated as a cashadvance.

Multi Payments

You can make up to 100 payments in one request to BOQ accounts oraccounts held at most other Australian financial institutions. You canalso save the payment details for payees that you pay regularly.

Before you can use this service, you will need to choose your Daily Limitspackage. Any Multi Payments will be subject to your daily Pay Anyonelimit. You can make a Multi Payment from your account or your creditcard. A credit card payment will be treated as a cash advance.

Foreign Currency Calculator

A currency calculator that allows you to convert foreign currencies to andfrom the Australian dollar based on the current exchange rates.

International and RTGS (Real Time Gross Settlement) payments

You can request both international payments and domestic currencyRTGS payments from within Internet Banking. Internet Banking will alsostore your frequently used beneficiaries for future use as well as display apayment history.

Open or Apply for new accounts

You can request a new account (selected products only) be opened foryou from within Internet Banking with no need to attend a BOQ branch(currently personal customers only).

You also have access to BOQApply where you can apply for a number ofdifferent BOQ products.

Direct Debits

Once registered as a Debit Payment user you will be able to create, saveand edit a group of Direct Debits online. This feature is ideal forcollecting gym subscriptions as an example. You are also able to save alist of payers for future use.


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Daily Limits package for BPAY and Pay Anyone payments

When you register for Internet Banking you will be offered a number ofdaily limits packages to choose from. These will define the dailytransaction amount limit for Pay Anyone (including Multi Payments) andBPAY transactions performed via Internet Banking.

The limit package can be set by the branch as part of the initialregistration, and be effective immediately. You can also choose orchange your limits package online decreases are activated immediatelyand any increases will automatically be applied after 2 calendar days.

Extra online security using the BOQ Security Token

Protecting the integrity of our customers financial information is our toppriority, so we have introduced a superior level of online security usingthe BOQ Security Token.

The BOQ Security Token is a small electronic device which generates apass code that continually changes this ensures maximum protection foryour transactions.

The BOQ Security Token will be provided to Internet Banking customersthat have a daily Pay Anyone limit of $10,000 or greater. Note: allPayments File Upload Facility (PFUF) users must use the BOQ SecurityToken irrespective of their daily limit.

SMS banking services

You can register to receive SMS banking alerts and /or SMS accountenquiries. SMSs will be sent to the mobile number you nominate inyour Internet Banking registration.

SMS enquiries enables you to request balances for accounts listed on yourprofile and which have been assigned a Quick Access Number (QAN) or view alist of the last 5 transactions for a specified account. Request and response arevia SMS. The BOQ SMS number is 042 745 7272.

SMS Alerts enables you to elect to receive alerts (from a predefined list) to letyou know when a specific event has occurred (e.g. Internet Banking paymentsgreater than an amount specified by you has been made from one of youraccounts).


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Business features

Internet Banking is a great tool for businesses. It takes the hassle out of

paying your employees and keeping records of all your transactions.

Multi Payments

You can use Multi Payments to make up to 100 payments in one request.This is ideal for payroll payments. You can also save the details of regularpayees.

Before you can use this service you need to choose your Daily LimitsPackage (if you haven't already chosen one). Multi Payments will be subjectto your daily Pay Anyone limit. You can make a Multi Payment from anominated account or your credit card. A credit card payment will betreated as a cash advance.

Direct Debits

Once registered as a Debit Payment user you will be able to create, save andedit a group of Direct Debits online. This feature is ideal for collecting gymsubscriptions as an example. You are also able to save a list of payers forfuture use.

Mobile banking

Transfer money, pay bills, authorize payments, view your transaction historyall from the convenience of your mobile phone.

With BOQ's latest electronic banking offering your mobile phone can now actas your own portable bank, working with internet banking to provide accessto and control of all your accounts.

Payments File Upload

The Payments File Upload Facility is a fast and easy way to process yourdirect debits, subscriptions, salaries, wages and other credits direct to youremployees (or other recipients) accounts anywhere in Australia. Use yourown accounting package to create a file of payments, then transmit the fileto us using Internet Banking.


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Apply for Payments File Upload Facility (PFUF):

To process direct credits via the Payments File UploadFacility please complete the Payments File Upload FacilityApplication (PDF 415KB). To process direct debits you will need

to complete the Debit User Pack (PDF 660KB). If you want toprocess both direct credits and direct debits please complete bothforms. Then take the completed form(s) to your local BOQ branchor Business Banking Centre.

Daily Limits package for BPAY

and Pay Any one payments

When you register for Internet Banking you will be offered a number of dailylimits packages to choose from. These will define the daily transaction

amount limit for Pay Anyone payments (including Multi Payments) and BPAYtransactions via Internet Banking.

Your Daily Limits Package can be set or changed by the branch and beeffective immediately. You can also choose or change your limits packageonline. Any decreases requested online are immediate and increases willautomatically be applied after 2 calendar days.

Extra online security using the BOQ Security Token

Protecting the integrity of our customers financial information is our toppriority, so we have introduced a superior level of online security using theBOQ Security Token.

The BOQ Security Token is a small electronic device which generates apassword that continually changes this ensures maximum protection foryour transactions.

The BOQ Security Token will be provided to Internet Banking customers thathave a daily Pay Anyone limit of $10,000 or greater. Note: all Payments File

Upload Facility (PFUF) users must use the BOQ Security Token irrespectiveof their daily limit.

SMS banking services

You can register to receive SMS banking alerts and/or SMS accountenquiries. SMSs will be sent to the mobile number you nominate in yourEnhanced Internet Banking profile.
http://www.boq.com.au/uploadedFiles/Payment_File_Upload_Facility_Application.pdfhttp://www.boq.com.au/uploadedFiles/Payment_File_Upload_Facility_Application.pdfhttp://www.boq.com.au/uploadedFiles/Debit_User_Pack.pdfhttp://www.boq.com.au/uploadedFiles/Debit_User_Pack.pdfhttp://www.boq.com.au/uploadedFiles/Payment_File_Upload_Facility_Application.pdfhttp://www.boq.com.au/uploadedFiles/Payment_File_Upload_Facility_Application.pdf


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SMS enquiries allows you to request balances for accountslisted on your profile or view a list of the last 5 transactions fora specified account. Request and response are via SMS.

SMS Alerts allows you to elect to receive alerts (from apredefined list) to let you know when a specific event hasoccurred (e.g. Internet Banking transactions greater than anamount specified by you has been made from one of youraccounts)

Multi user transaction authorization and privilege delegation

Using the multiple account user and privilege delegation features you canenforce dual or multiple authorizations for transactions. For example, theaccounts clerk could create the payroll template with the actual paymentbeing authorized by the payroll manager.

Related Account Access

The Related Account Access feature can be used to authorize a person whois a signatory on the business account (and who has individual operatingauthority), to access the business account using his or her personal Internetbanking profile. This avoids the need for the signatory to use two separateCustomer Access Numbers and Personal Access Codes to access the personalaccount and the business account. Additionally, funds can be transferred toand from the personal and business accounts as funds transfers instead ofPay Anyone Payments.

In order to be eligible for Related Account Access the following conditionsmust be met:

the person who is given access to the account must be a signatory on theaccount

the account holder must apply for the person to have access to the account

Related Account Access in practice:

ABC Pty Ltd has two directors and the company accounts have an either tosign operating authority. Additionally, both directors have personalaccounts with BOQ and Internet Banking access for those personal


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accounts. ABC Pty Ltd can apply for Related Account Access and allow bothdirectors to access the company accounts from their personal InternetBanking profiles. Each director will need to use his or her own CustomerAccess Number and Personal Access Code to access the companys accounts.

Apply for Related Account Access:

1.The account holder needs to complete the Related AccountAccess Application (PDF 500KB)

2.Take the completed form to your local BOQ branch orBusiness Banking Centre for processing.

It should be noted that:

a separate application is required for each related account user

the users personal Pay Anyone payment limits and accessrestrictions apply

Internet banking is the new buzz word around the corner. Forgettraditional banking and the way you used up to queue to get thetransactions done. It is here to change that all. Now banking is nomore taking out time from your schedule and to start with findinga place in the car park and then waiting for your turn to get to

the counter. This new age banking gives you the freedom to dobanking at your finger clicks.

The easiest and the safest way of banking is here. Introduceyourself to net banking. Now you can do the transactions sittingright into your office cubicle or from your home. It can be saidthat with this the new era of banking has arrived and for thebetter of it. It is simple for anyone who has a access to internet.It certainly is beneficial compared to the traditional way of

banking.

You simply use internet instead of using paper or phone to accessyour account and can enjoy it from virtually anywhere, even ifyou are on a vacation to Bahamas. Secondly you can have thereports like your account information, monthly statements,reconciliation reports etc. whenever you want to access.
http://www.boq.com.au/uploadedFiles/Related_Account_Access.pdfhttp://www.boq.com.au/uploadedFiles/Related_Account_Access.pdfhttp://www.boq.com.au/uploadedFiles/Related_Account_Access.pdfhttp://www.boq.com.au/uploadedFiles/Related_Account_Access.pdf


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No calling up to the bank or the customer care to get a workdone, everything is conveniently at the fingertips.

The major concern of a few was the security of the net bankingwhich is till now well addressed by the security applications orfirewalls used by the banks providing this facility or the onlinebanks. Every transaction made through it is completely safe andcan be relied upon.

Although there are some issues which one need to understand tokeep the security levels high. You should try to avoid accessingyour account from unsecured lines or machines. In any case do

not revel your banking ID and password to anyone even if tryingto pose a bank employee. These are the few things which makeyour overall experience wonderful and safe.


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Advantages of internet banking

Advantages previously held by large financial institutions have shrunkconsiderably. The Internet has leveled the playing field and afforded openaccess to customers in the global marketplace. Internet banking is a cost-effective delivery channel for financial institutions. Consumers areembracing the many benefits of Internet banking. Access to ones accountsat anytime and from any location via the World Wide Web is a convenienceunknown a short time ago. Thus, a banks Internet presence transformsfrom brouchreware status to Internet banking status once the bank goesthrough a technology integration effort to enable the customer to accessinformation about his or her specific account relationship. The six primary

drivers of Internet banking includes, in order of primacy are:

Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers Provide services offered by competitors Reduce customer attrition It removes the traditional geographical barriers as it could reach out to

customers of different countries/legal jurisdiction. This has raised thequestion of jurisdiction of law/supervisory system to which suchtransactions should be subjected.

It has added a new dimension to different kinds of risks traditionallyassociated with banking, heightening some of them and throwing new riskcontrol challenges.

Security of banking transactions, validity of electronic contract, customers'privacy, etc., which have all along been concerns of both bankers and

supervisors have assumed different dimensions given that Internet is apublic domain, not subject to control by any single authority or group ofusers.

It poses a strategic risk of loss of business to those banks who do notrespond in time to this new technology, being the efficient and costeffective delivery.


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Disadvantages of internet banking

INTERNET BANKING FRAUD : INTERNET BANKING FRAUD Howto Spot Phishing Scams? It is easy to uncover a crude phishing scam.

For example, if you get an email from a bank youve never opened anaccount at, then dont follow the link and enter your personalinformation. Now, if you actually have an account at the institution itgets more interesting. Youll want to look at the message carefully tosee if it is a phishing scam. Are words misspelled? Sometimesscammers operate in a second language and they give themselvesaway by using poor grammar. The best way to avoid becoming aphishing scam victim is to use your best judgment. No financialinstitution with any sense will email you and ask you to input all of

your sensitive information. In fact, most institutions are informingcustomers that We will never ask you for your personal informationvia phone or email.

INTERNET BANKING FRAUD Why People Fall for Phishing Scams?Anybody can be tricked by a sophisticated phishing scam. Simplephishing scams are easy to spot, but the best scammers are actuallypretty smart. They use a variety of tricks to make the phishing scamlook like a legitimate process. For example, they might include agraphic from the bank right on the email message or website. Or, thelink provided in the email may look like it goes to the banks websitewhile the victim is actually sent to a very different site.

INTERNET BANKING FRAUD Why Scammers Use Phishing Scams?

Why would somebody do this? Well, you can gather a lot of juicy

information with a phishing scam. First, you can get somebodys

account number and password. Then you can try to hijack their

assets. Some phishing scams ask for all of your personal information

(SSN, mothers maiden name, date of birth, etc) so that they can

steal your identity and open creditaccountsin your name. Some

victims of phishing scams have given up their credit card numbers

only to find that the card was used fraudulently.
http://www.wiziq.com/tests/accountshttp://www.wiziq.com/tests/accountshttp://www.wiziq.com/tests/accountshttp://www.wiziq.com/tests/accounts


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Security

The Bank maintains the highest of standards as far as security technologyis concerned, some ofwhich are: 256 bit SSL encryption - This is the highest level of securityavailable for communicationand transactions on the Internet. SSL encryption allows the Bank to encryptinformation, so that whenit travels through the internet, it is encrypted and cannot be accessed byanyone.SSL also ensuresthat information is sent to the correct place and that it is not tampered with.

Security of a customer's financial information is very important, withoutwhich online banking could not operate. Financial institutions have set upvarious security processes to reduce the risk of unauthorized online access

to a customer's records, but there is no consistency to the variousapproaches adopted.

The use of a secure website has become almost universally adopted.

Though single password authentication is still in use, it by itself is notconsidered secure enough for online banking in some countries. Basicallythere are two different security methods in use for online banking.

The PIN/TAN system where the PIN represents a password, used forthe login and TANs representing one-time passwords to authenticatetransactions. TANs can be distributed in different ways, the mostpopular one is to send a list of TANs to the online banking user bypostal letter. The most secure way of using TANs is to generate them byneed using a security token.[ These token generated TANs depend onthe time and a unique secret, stored in the security token (two-factorauthentication or 2FA). Usually online banking with PIN/TAN is done viaa web browser using SSL secured connections, so that there is noadditional encryption needed.

Another way to provide TANs to an online banking user is to send the

TAN of the current bank transaction to the user's (GSM) mobile phonevia SMS. The SMS text usually quotes the transaction amount anddetails, the TAN is only valid for a short period of time. Especially inGermany, Austria and The Netherlands, many banks have adopted this"SMS TAN" service as it is considered very secure.
http://en.wikipedia.org/wiki/Secure_websitehttp://en.wikipedia.org/wiki/Passwordhttp://en.wikipedia.org/wiki/Authenticationhttp://en.wikipedia.org/wiki/Personal_Identification_Numberhttp://en.wikipedia.org/wiki/Transaction_authentication_numberhttp://en.wikipedia.org/wiki/One-time_passwordhttp://en.wikipedia.org/wiki/Security_tokenhttp://en.wikipedia.org/wiki/Two-factor_authenticationhttp://en.wikipedia.org/wiki/Two-factor_authenticationhttp://en.wikipedia.org/wiki/Two-factor_authenticationhttp://en.wikipedia.org/wiki/Two-factor_authenticationhttp://en.wikipedia.org/wiki/Security_tokenhttp://en.wikipedia.org/wiki/One-time_passwordhttp://en.wikipedia.org/wiki/Transaction_authentication_numberhttp://en.wikipedia.org/wiki/Personal_Identification_Numberhttp://en.wikipedia.org/wiki/Authenticationhttp://en.wikipedia.org/wiki/Passwordhttp://en.wikipedia.org/wiki/Secure_website


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Signature based online banking where all transactions are signed andencrypted digitally. The Keys for the signature generation andencryption can be stored on smartcards or any memory medium,depending on the concrete implementation.

Attacks

Most of the attacks on online banking used today are based ondeceiving the user to steal login data and valid TANs. Two well knownexamples for those attacks are phishing and pharming. Cross-sitescripting and keylogger/Trojan horses can also be used to steal logininformation.

A method to attack signature based online banking methods is tomanipulate the used software in a way, that correct transactions areshown on the screen and faked transactions are signed in thebackground.

A 2008 U.S. Federal Deposit Insurance Corporation TechnologyIncident Report, compiled from suspicious activity reports banks filequarterly, lists 536 cases of computer intrusion, with an average loss perincident of $30,000. That adds up to a nearly $16-million loss in the

second quarter of 2007. Computer intrusions increased by 150 percentbetween the first quarter of 2007 and the second. In 80 percent of thecases, the source of the intrusion is unknown but it occurred duringonline banking, the report states.[4]

The most recent kind of attack is the so-called Man in theBrowserattack, where a Trojan horse permits a remote attacker tomodify the destination account number and also the amount.

Countermeasures

There exist several countermeasures which try to avoid attacks. Digitalcertificates are used against phishing and pharming, the use of class-3card readers is a measure to avoid manipulation of transactions by thesoftware in signature based online banking variants. To protect theirsystems against Trojan horses, users should use virus scanners and becareful with downloaded software or e-mail attachments.
http://en.wikipedia.org/wiki/Phishinghttp://en.wikipedia.org/wiki/Pharminghttp://en.wikipedia.org/wiki/Cross-site_scriptinghttp://en.wikipedia.org/wiki/Cross-site_scriptinghttp://en.wikipedia.org/wiki/Keyloggerhttp://en.wikipedia.org/wiki/Trojan_horse_(computing)http://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporationhttp://en.wikipedia.org/wiki/Online_banking#cite_note-3http://en.wikipedia.org/wiki/Online_banking#cite_note-3http://en.wikipedia.org/wiki/Online_banking#cite_note-3http://en.wikipedia.org/wiki/Man_in_the_Browserhttp://en.wikipedia.org/wiki/Man_in_the_Browserhttp://en.wikipedia.org/wiki/Trojan_horse_(computing)http://en.wikipedia.org/wiki/Digital_certificateshttp://en.wikipedia.org/wiki/Digital_certificateshttp://en.wikipedia.org/wiki/Virus_scannershttp://en.wikipedia.org/wiki/Virus_scannershttp://en.wikipedia.org/wiki/Digital_certificateshttp://en.wikipedia.org/wiki/Digital_certificateshttp://en.wikipedia.org/wiki/Trojan_horse_(computing)http://en.wikipedia.org/wiki/Man_in_the_Browserhttp://en.wikipedia.org/wiki/Man_in_the_Browserhttp://en.wikipedia.org/wiki/Online_banking#cite_note-3http://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporationhttp://en.wikipedia.org/wiki/Trojan_horse_(computing)http://en.wikipedia.org/wiki/Keyloggerhttp://en.wikipedia.org/wiki/Cross-site_scriptinghttp://en.wikipedia.org/wiki/Cross-site_scriptinghttp://en.wikipedia.org/wiki/Pharminghttp://en.wikipedia.org/wiki/Phishing


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Future of internet banking


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Conclusion:

The basic objective of my research was to analyze the awareness among

customers for internet banking in India .it gives direction to research tools,

research types and techniques. Although the findings reveal that people know

about the services but still many people are unaware and many of them are non-

users so the bank should by promotion try to retain the customers. Banks should

look forward to have some tie-ups with other financial institutions to increase the

service base.

Documents

internet banking 254.docx