Electronic Banking, features, objectives,uses of electronic banking

HOME BANKING:-

Home banking is defined as conducting the transactions and accessing bank account in information via personal computers. Often home banking is referred to as Electronic banking. In order to perform home banking, a personal computer needs to be installed to perform various banking functions.

Online banking is also known as Cyber banking, Home banking, Virtual banking.

Electronic banking saves a lot of time and money for users. Online banking is growing in India.

Meaning of Electronic banking:-

Internet banking means any user with personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions. E-banking includes familiar and relatively mature electronically-based products in developing markets, such as telephone banking, credit cards, ATMs and direct deposit. It also includes electronic bill payments and products mostly in the developing stage, including stored-value cards and internet-based stored value products.

Features of electronic banking in India:-

• Can obtain charge and credit card statements.

• Can pay bills online.

• Can access current account balances at any time.

• Can download account transactions.

• Can keep a track of accounts online.

• Customers have a flexible schedule.

• Can transfer money between accounts.

• Can send e-mails to the bank.

• Can also use additional services like free phone banking, ATM withdrawals, bill paying,

Objectives of Electronic Banking:-

• To provide services in users own environment for convenience and accessibility.

• To reduce risk of handling cash.

• To provide low-cost and financial services to rural and under-serviced communities.

• To provide a system that delivers efficient payments linked to a bank account.

USES OF ELECTRONIC BANKING:-

Bill payment service:-

 You can facilitate payment of electricity and telephone bills, mobile phone, credit card and service providers and insurance companies, across the country. You can also set up standing instructions online to pay your recurring bills, automatically.

Fund Transfer:-  You can transfer any amount from one account of the same or any another bank. Customers can send money anywhere in India.

Credit card customers:   Customers can not only pay their credit cards     bills online but also get a loan on their cards. If you lose your credit card, you can report about your lost card online.

Recharging your prepaid phone:   Just selecting your operator’s name, entering your mobile number and the amount for recharge, your phone is again back in action within in few minutes.

Railway pass:  Indian railway has tied up with ICICI bank and you can now make your railway pass for local trains online.

Shopping:  You can shop online and the payment is also made conveniently through your account. You can buy railway and air tickets through internet banking.

Investing through internet banking:  You can now open an ED online through funds transfer. Investors can easily trade in the stock market.

Risks In Electronic Banking:-

Credit Risk

Legal Risk

Strategic Risk

Reputation Risk

Transaction Risk

Market Risks