Trend of Internet Banking

Dear readers, here we are presenting an article on Internet Banking. As Internet Banking service is provided by every Banks and has common activity and also plays an important role in our daily life.

Internet Banking: 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 has brought about a 360 degree change in the entire banking industry. 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. This method has also made shopping and bill payment very easy and convenient. Long queues for these activities have now become history.

Functions of internet banking:-

1. An access to account data: Internet banking systems help customers in acting as a medium through which data related to their accounts (like transaction details, balance enquiry, status of particular transaction etc) can be accessed from any point where internet facility is available. This can be further extended to gathering of information related to credit card balances, bill payment date etc.

2. A mode of operational interaction: Perhaps one of the popular functions of internet banking is that it can transfer funds. This includes transfer of money from a customer’s account to another person’s account in a different or same bank, payment of utility bills (telephone, gas, electricity etc) or any other transfer where the bank has channels with the point where the money is supposed to reach. These operations require instructions from the account holder and this instruction or request can be made through internet.

Security and operation:-

One of the major concerns of people with respect to internet banking is the safety related to data of bank account, transactional information and also the access path (account number, PIN etc) of their accounts. There are set of regulations laid down by Reserve Bank of India, that guide banks on the security aspects of internet banking.

The banks are bound to maintain certain security policies related to internet banking that are approved by the managing directors of the bank. Further there are specifications related to use of updated technology for banking sites and also the network and data base is to be administered and tested on regular intervals by a separate department of a bank that works on these major aspects.

There will be a unique user ID and password provided to individual accounts of a customer and the web page where these details of an account are to be updated will generally be secured.

Transfer of fund is done through two basic modes:

1. Real Time Gross Settlement is a mode where the transaction to an account takes place more spontaneously (quickly). There are certain minimum limits (Rs 2 lakh) above which this mode of transaction can be used.

2. National Electronic Funds Transfer (NEFT) and this mode of transaction takes place in batches (batch of transactions say 4 or 5) in specified regular intervals of time.

Benefits of Internet banking:

Businesses rely on efficient and rapid access to banking information for cash flow reviews, auditing and daily financial transaction processing. E-banking offers ease of access, secure transactions and 24-hour banking options.

From small start-up companies to more established entities, small businesses rely on e-banking to eliminate runs to the bank and to make financial decisions with updated information. In an information-driven business climate,

Risks Involved in internet banking:-

There are many threats that deter a person from using internet banking. These threats are also being faced by banking channels of developed countries. The names of such threats include Phishing, viruses, theft of user identity and password through other means etc. There are few basic points a customer has to remember when it comes to use of internet banking facility.

·         The net banking facility should be availed from personal computer only and not at cyber centers or any other places.

·         The address of the site of the bank should be noted by the customer and it is good to type the address of site instead of reaching the site through other links.

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