Meaning,advantages,disadvantages and uses of Internet banking

INTERNET BANKING:

Internet Banking means that any user with a private laptop and a browser will get connected to his bank’s web site to perform any of the virtual banking functions.

Internet 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.

                                      

Objectives of Internet Banking:

• To provide low-cost and financial services to rural and under-serviced communities. 
• To reduce risk of handling cash. To provide a system that delivers efficient payments linked to a bank account.
• To provide services in users’ own setting for convenience and accessibility.

Advantages Of Internet Banking:

Higher Interest Rate: 

This is great advantage of Internet banking is the interest rates which basically range from 3.40% to 5% annually.
Very convenient:

Internet banking is totally easy thing to do. In the comfort of home or offices, people can do whatever monetary transactions they wish to do with their bank.

Easy way of payment: 

Bill payments can also handled properly and smartly. Instead of waiting for certain due dates, people can easily pay all their transactions using their transactions using their computer and in coordinations with their bank.
No time constraint:

 Internet banking is also stress free because it never closes unlike the traditional banking that has cut-off time.
Unlimited service day and night:

The services and various features of bank are always available seven days a week and 24 hours daily.
Easy Transactions:

Online transactions, compared to ATM or traditional banking, works fater.
Efficient and Effective:

Internet banking is both efficient and effective.

With only 1 secure web site, all financial transactions can be managed orderly.

Disadvantages Of Internet Banking:

Bank web site changes:
Even the biggest banks sporadically upgrade their on-line programs, adding new features in unfamiliar places.

Trust Aspect: 

For many people, the biggest hurdle to online banking is learning to trust it. Internet banking should be entered very carefully if people wish to enjoy their financial life.

Learning Curve: 

Banking sites will be tough to navigate initially.

Plan to invest some time and read the tutorial in order to become comfortable in virtual lobby.
Time Taking in start-up: 

In order to register for bank’s online program, people will probably have to provide ID and sign a form at a bank branch.

Uses of Internet Banking:

Fund Transfer: 

Transfer any amount from one account to another account of the same or any another bank. Customers can send money anywhere in India.

The transfer can occur during a day some, whereas in a traditional method, it takes about three working days.

Credit Card Customers: 

With internet banking, customers can not pay their credit card bills online but also get a loan on their cards. If anyone looses his/her credit card, he/she can report about the lost card online.
Shopping: 

With a range of all kind of products, one can shop online and the payment is also made conveniently through the account. One may also get railway and air tickets through net banking.

Recharge Prepaid Phone:

Now just top-up prepaid mobile cards by logging in to internet banking.

By simply choosing the operator’s name,entering the mobile variety and therefore the quantity for recharge, the phone is once more back in action at intervals couple of minutes.

Investing Through Internet Banking: 
One can now open an FD online through funds transfer.