SELF STUDY TOPIC

INTRODUCTION

Several initiatives have been taken by the Government of India as well as the RBI (Reserve Bank of India); have facilitated the development of ebanking in India. The government of India enacted the IT Act, 2000, which provides legal recognition to electronic transactions and other means of electronic commerce.

WHAT IS E-BANKING ?
1. Banking is a combination of two, Electronic technology and Banking.

2. Electronic Banking is a process by which a customer performs banking Transactions electronically without visiting a brick-and-mortar institutions. 3. E-Banking denotes the provision of banking and related service through Extensive use of information technology without direct recourse to the bank by the customer.

EVOLUTION OF E-BANKING
The story of technology in banking started with the use of punched card machines like Accounting Machines or Ledger Posting Machines. The use of technology, at that time, was limited to keeping books of the bank. It further developed with the birth of online real time system and vast improvement in telecommunications during late 1970s and 1980s.

DIAGRAM OF E-BANKING SYSTEM

FEATURES OF E-BANKING Transactional: (e.g. performing a financial transaction such

as an account to account transfer, paying a bill or applications like applying for a loan, new account, etc.) Electronic Bill Presentment and Payment (EBPP) Funds transfer between customers own checking and savings accounts, or to another customers account. Investment purchase or sale. Loan application and transactions such as repayments.

Non-transactional:
(e.g. online statements, Check links, Co-browsing etc.) Financial Institution Administration- features allowing financial institutions to manage the online experience of their end users.

ADVANTAGES OF E-BANKING

Convenience- Unlike your corner bank, online banking sites never close; theyre available 24 hours a day, seven days a week, and theyre only a mouse click away. Transaction speed - Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds. Efficiency -You can access and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site. Effectiveness - you manage all of your assets more effectively. Cheaper alternative - With increasing competition, it seems to be the cost factor that is driving banks to offer the facility.

DISADVANTAGES OF INTERNET BANKING

Start-up may take time - In order to register for your banks online program, you will probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to view and manage their assets together online, one of you may have to sign a durable power of attorney before the bank will display all of your holdings together. Learning curves- Banking sites can be difficult to navigate at first. Plan to invest some time . Bank site changes- Even the largest banks periodically upgrade their online programs, adding new features in unfamiliar places. In some cases, you may have to re-enter account information.

HARDWARE REQUIREMENTS

E-BANKING PRODUCTS & SERVICES

Automated Teller Machine (ATM): Their main purpose is to allow customer to draw cash at any time. 24-hour access to Cash - Withdraw up to Rs.10, 000/- per day on your ATM Card and up to Rs. 15,000 on your Debit Card. Personalized Cash Withdrawals Save time on your cash withdrawal transactions by pre-setting your preferred language / account / amount. View Account Balances & Mini-statements - Get details of the last 9 transactions on your account with the mini-statement, along with your account balance. Change ATM PIN - Change your ATM PIN at any given point in time. Order a Cheque Book / Account Statement
Internet Banking -Net Banking feature for which you will need your unique Customer ID and IPIN (password). Login to Net Banking to confirm that your ID is active in our records. National electronic Funds Transfer (NEFT) - Funds will be credited to the beneficiary account in two working days Real Time Gross Settlement (RTGS) - Funds will be credited to the beneficiary account on the same working day. Pay your bills - Pay your cellular, telephone, electricity and HDFC Bank Credit Card bills through Phone Banking using Bill Pay, a comprehensive bill payments solution.

Third Party Transfer - you can transfer funds online from your HDFC Bank account to another HDFC Bank/Other Bank account (beneficiary), anywhere in India. This is a real-time transaction and the debit and credit will reflect in the respective accounts immediately. Services available with i Mobile: Payment of utility bills and credit card bills Transfer of funds to any bank account Payment of insurance premium Bank Account Funds transfer Bill Payment Balance Enquiry Last 5 transactions Cheque Book Request Stop Cheque request Cheque status Enquiry Credit Card Balance Details Last Payment Details Payment Due Date

SUGGESTIONS Banks should obey the RBI norms and provide facilities as per the norms, which are not being followed by the banks. Give proper training to customers for using i-banking Create a trust in mind of customers towards security of their accounts Provide a platform from where the customers can access different accounts at single time without extra charge. Make their sites more users friendly. Customers should be motivated to use I- banking facilities more. Covering up the towns in rural areas with ATMs so that the people in those areas can also avail better services. Fair dealing with the customers.

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