Meaning, Advantages and disadvantages of Mobile Banking

Mobile Banking:

Mobile banking conjointly referred to as M-Banking, SMS banking etc. Mobile banking could be a term used for acting balance checks, account transactions, payments, etc. Mobile banking uses the same infrastructure like the ATM solution. But it's very simple and cheap to implement. It reduces the cost of operation for bankers in comparison to the use of ATMs.

Advantages of Mobile Banking:

• It utilizes the mobile connectivity of telecom operator and therefore does not require an internet connection.
• With mobile banking, users of mobile phones will perform many monetary functions handily and firmly from their mobile.
• Mobile banking is available round the clock 24/7/365, it is easy and convenient and an ideal choice for accessing financial services for most mobile phone owners in the rural areas.
• Mobile banking is claimed to be even safer than online/internet banking.
• People can check their account balance, review recent transaction, transfer funds, pay bills, locate ATMs, deposit cheques, manage investing, etc.

Disadvantages Of Mobile Banking:

• Modern mobile devices like smart phone and tablets are better suited for mobile banking than old models of mobile phones and devices.
• Regular users of mobile banking over time can accumulate significant charges from their banks.
• Mobile banking users square measure in danger of receiving faux SMS messages and scams.
• The loss of a person’s mobile device often means that criminals can gain access to mobile banking PIN and other sensitive information.

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.

ATM meaning,uses, functions,advantages and disadvantages of ATM

Automated Teller Machine: 

ATM  is an electronic fund transfer terminal capable of handling cash deposits, transfer between accounts, balance enquirers, cash withdrawal and pay bills. ATM is designed to perform the most important functions of bank. It is operated by plastic card with its special features. The plastic card is replacing Cheque, personal attendance of the customer, banking hour’s restrictions and paper based verification. These are debit cards. ATM itself can provide information about customer account and also receive instructions from customers ATM cardholders. The online ATM enable the customer to avail banking facilities from anywhere. It maybe online or offline.

                     

Advantages of ATMs:

To the customers:  

• Offer flexibility of cash withdrawal to the customer.

• Offer anywhere banking facility.

• Allow privacy in transactions.

• Are errors free.

• Offer quicker and efficient service.

To the banks:  

• Increase market penetration. 

• Alternative to opening new branches.

• Reduce operating new branches. 

• Helps banks to avoid transportation of cash and cash handling by the employees.

Disadvantages of ATMs:

• Set-up fee to install and network the ATMs.  

• Monthly or annual service fee for support.  

• Communications charges for dial-up, leased lines, or wireless data links.

Functions Performed by ATM:

• Pin change

• Balance Inquiry

• Cash withdrawn 

• Cash Deposit

• Fund Transfer

•  Mini-Statement  

TYPES OF ATMs: There are some types of ATMs.

Onsite ATM:
it is situated either within the branch premises or in very close proximity of the branch.

Ofsite ATM:
It is not situated within the branch premise but is located at other places, such as shopping centers, airports, railway and petrol stations.

Worksite ATM:
it is located within the premise of an organization and is generally meant only for the employees of the organization.

Cash Dispenser:
It allows only cash withdrawal, balance enquiry, and mini statement requests. Unlike an ATM, CD cannot be used for depositing cash or cheques.

Mobile ATM:
It refers to an ATM that moves in various areas for the customers. Few private banks have introduced ATM on wheels.

USES OF ATMs:

• Paying routine bills, fees and taxes.
• Donating to charities.
• Games and promotional features.
• Purchasing.
• Deposit currency recognition, acceptance and recycling.
• Printing bank statements.
• Updating passbooks.
• Loading monetary value into stored value cards.

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

BANKING TECHNOLOGY,functions,advantages,objectives of banking technology

BANKING TECHNOLOGY:-

Introduction:- 

banks are investing heavily in digital banking technology. Information technology has increased the financial control and has made collation of information much easier. Not only banks need greatly enhanced use of technology to the customer friendly, efficient and competitive existing services and business, they also need technology for providing newer products and newer forms of services in an increasingly dynamic and globalize environment. Internet banking has come to be recognized as a virtual necessity to face the imminent challenge that is growing felt in modern days, owing to globalization and liberalization of the Indian economy. Information technology is becoming a key business enabler and is being positioned as a key differentiation. The banks have achieved significant success in leveraging IT through the implementation of core business solutions and it has helped them in streamlining, standardizing, and expanding their services portfolio.

Objectives of bank technology:-

The competitive advantage of banks will rely heavily on the capability of technology to implement business process, manage risks, and provide excellent customer service.

•     Application standards to reduce need for additional hardware and software,
•    Shorten time to develop new applications,
•        Improve ability to distribute information,
•         Reduce cost of system support and maintenance and Systems that can perform under heavy network traffic.
•   Systems that can perform under heavy network traffic.

Advantage of technology:-

Technology is used by financial system every day to obtain the necessary technology needed to ensure maximum productivity and success. The advantages of technology are as follows:-

• Helps financial system to think beyond present.
• Financial system can update and set plans in light with the latest world finance scenario.
• Getting connected with the changing business and the customer pool.
• Survival and sustainable growth with positive performance are indicators of successful financial system. 
• Excel in true professionalism with right predication or forecast instead of being word of mouth marketers.

FUNCTIONS OF BANK TECHNOLOGY:-

Technology is the biggest force for change in banks. Technology has helped to speed-up the efficiency  banking system, simplified the development of budgets and the analysis of performance to plan, streamlined the cash cycle, and enhanced its communication network. Technology has also enabled the globalization of finance.

Main functions of technology are as follows:-

• To raise the productivity of the financial system.
• To assist financial system with graphics and multimedia projects.
• To make system more effective and efficient when performing daily activities.
• To facilitate communications.

TECHNOLOGICAL CHALLENGES IN BANKING SYSTEM:-

These are some critical challenges which are faced by the banking system:-

• Cost involved in technology implementation

• Need to ensure appropriate security and integrity of the system

• Disaster recovery management plans

• To develop its own communications network

BANKING SYSTEM

BANKING SYSTEM:-

The modern banking system in India started with the establishment of general bank of India in 1786.

MEANING OF BANKING:-  

Bank is German word which means 'to collect'. The main functions of the banks is collection of funds as deposits. A bank is a financial institution that accepts deposits from the public and creates credit.

Features of Banking:-

There are some important features of banking.

• It deals with money and accepts deposits from public.

• The buying and selling of bullion and specie.

• The receiving of all kind of bonds or valuable  on deposit or for safe custody. 

• The buying and selling of foreign exchange including banks notes.

• The drawing, accepting, buying, selling, collecting and dealing in bills of exchange,promissory notes,debentures, and other instruments and securities whether transferable or negotiable or not. 

• The purchasing and selling of bonds, scripts or other forms of securities on behalf of constituents or others, the negotiating of loans and advances.
• The borrowing, raising or taking up of money.
• The granting and issues of letters of credit, traveler's cheques and circular notes.

TYPES OF BANKS:-

Banks can be divided into two groups. 

1. The scheduled banks.
2. Non-scheduled banks.

SCHEDULED BANKS:- 

A scheduled bank is one which is registered in the second scheduled  of the RESERVE BANK OF INDIA. Scheduled banks are further classified into:-

1. commercial banks.
2. co-operative banks. 

COMMERCIAL BANKS:- 

 Commercial banks are those banks which perform all kinds of banking functions such as accepting deposits, credit creation, and agency functions. some of the commercial banks in India are Andhra bank, Canara bank, Indian bank, Punjab national bank etc.

CO-OPERATIVE BANKS:- 

 Co-operative banks came into existence with enactment of the co-operative of the co-operative credit societies act of 1904 which provided for the formation of co-operative credit societies.

NON-SCHEDULED BANKS:-

Banks which are not included in the Second schedule of the RBI, are known as non- scheduled banks.

Banks can be classified into the following categories.

1. COMMERCIAL BANKS
2. CENTRAL BANK
3. CO-OPERATIVE BANK
4. SAVING BANK
5. EXPORT-IMPORT BANK
6. DEVELOPMENT BANK