Internet banking
- 1. Internet Banking Prepared by- Dr Ramandeep Assistant Professor Deptt. of Commerce GCW, Sirsa (Haryana)
- 2. Introduction • Internet Banking refers to electronic banking. It is also known as virtual banking, online banking or anywhere banking. • It enables a client to perform his banking activities on his personal computer through internet. • Internet banking involves the use of internet as a medium of communication for accessing and utilizing most of banking services.
- 3. Definition “Internet banking refers to banking services where customers can manage their accounts over the internet, rather than personally visiting a branch.”
- 4. Features of Internet Banking • Use of internet • Customers can do their transactions fastly and efficiently • Anytime-anywhere banking • Helps in Expanding the customer base • Quick and fast information • Digital processing • Customer convenience
- 5. E-banking Delivery Channels 1. Centralized Banking Solution (CBS) Its an inter-branch networking and data sharing platform helps the customers to operate their accounts from any city in India having CBS networked branches.
- 6. E-banking Delivery Channels Continue…. 2. Automated Teller Machines (ATM) ATMs are designed to perform banking activities like- - Accepting deposits - Withdrawal of money - Transfer of money - Mobile recharge
- 7. E-banking Delivery Channels (Continue….) 3. Smart cards Smart card is a chip based card. In simple layman’s words, a smart card is the card with which we can exchange the data, store it and manipulate data. It performs all functions of magnetic strip cards like ATM Card, Debit and Credit Card etc.
- 8. E-banking Delivery Channels (Continue….) Examples of Smart cards • Hospitals use these cards to store patient details. • EBT (Electronic benefits transfer) cards are used for the distribution of government benefits. • Smart cards are used by educational institutions, government authorities etc for access control.
- 9. Advantages of E-Banking A.Benefits to Banks 1. Reduces cost 2. Global coverage 3. Central data base 4. Increase in customer base 5. Reduction of risk 6. Reduction in paper work 7. Adequate marketing too 8. Reduction in fraud and misappropriations
- 10. Advantages of E-Banking B. Benefits to Customers 1. Prompt in service 2. Anywhere anytime banking 3. Cashless banking 4. Online shopping 5. Saving of time 6. More convenience 7. More customer satisfaction
- 11. Advantages of E-Banking C. Benefits to Traders 1. Promotion of Business 2. Immediate settlement 3. Avoids risk
- 12. Advantages of E-Banking D. Benefits to Government and Nation 1. Clarity over transactions 2. Global coverage of product 3. Risk attached with handling cash
- 13. Limitations of E-Banking 1. High infrastructural cost 2. Lack of awareness 3. Security and privacy problems 4. Access problem 5. Lack of proper Cyber Laws 6. Lack of initiative on the part of employees 7. Hesitation on the part of users 8. Lack of computerization 9. Unauthorized transactions
- 14. Models foe E-Banking 1. Complete Centralised Solution (CCS) CCS is an ideal branch network model. It is an inter branch networking and data sharing platform helps the customers to operate their account from any city in the country.
- 15. Models foe E-Banking (Continue……) 2. Cluster Approach The computerized branches of each city are connected with Regional Processor located at each such city. It is necessary that computerization must be there at all branches to establish the connectivity amongst various branches..
- 16. Models foe E-Banking (Continue……) 3. High Tech Bank within Bank In this model, total computerization is avoided in all branches. Two different banks works within bank i.e. High tech bank and traditional bank.
- 17. Internet Banking Services • Online Tax Payment • Corporate internet Banking • Retail internet Banking • Online Shopping • Foreign Exchange • E-Money India • Online Railway Reservation • Depository Service • Electronic Fund Transfer • Online Bill Payment • Online Air Ticketing • Online Trading • Customer Care Service • Online Insta Remitt- RTCG
- 18. Thank You