By Harshvardhan, the Subject Matter Expert at Edumarz
Solution: Internet banking means any user with a PC and a browser can get connected to the bank’s website to perform any of the virtual banking functions and avail of any of the bank’s services. There is no human operator to respond to the needs of the customer. The bank has a centralised database that is web-enabled. All the services that the bank has permitted on the internet are displayed on a menu. Any service can be selected and further interaction is dictated by the nature of service. In this new digital marketplace, banks and financial institutions have started providing services over the internet. These types of services provided by the banks on the internet, called e-banking, lower the transaction cost, adds value to the banking relationship and empower customers. E-banking is electronic banking or banking using electronic media. Thus, e-banking is a service provided by many banks, that allows, a customer to conduct banking transactions, such as managing savings, checking accounts, applying for loans or paying bills over the internet using a personal computer, mobile telephone or handheld computer (personal digital assistant).
The range of services offered by e-banking are:
- Automated Teller Machines (ATM) and
- Point of Sales (PoS), Electronic Data Interchange (EDI) and
- Credit Cards Electronic or
- Digital cash and Electronic bank transfer (EFT).
The two ways in which EFT can be done are:
a. NEFT (National Electronic Fund Transfer) and
b. RTGS (Real Time Gross Settlement).
The growth of the Internet and e-commerce is dramatically changing everyday life, with the world wide web and e-commerce transforming the world into a digital global village. The latest wave in information technology is internet banking. It is a part of virtual banking and another delivery channel for customers.