E-Banking Notes

E-Banking

  • E-banking stands for Electronic banking.
  • It is the delivery of banking services through the use of electronic communication, primarily internet.
  • E-banking is also known as Internet banking, on-line banking or pc-banking.
  • E-banking may include ATMs, wire transfers, telephone banking, electronic funds transfers and debit and credit cards.
  • Customers access e-banking services through any electronic device such as PC, ATM, Kiosk or touch tone telephone.
  • To get started all you need is a computer with modem and internet connection, an account with the bank that provides these services.

E-banking Services

1.) Bill Payment Service :-

Each bank has tie-ups with various utility companies, service providers and insurance companies, across the country.

You can make payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills online.


2.) Fund Transfer:-

You can transfer any amount from one account to another account of the same or any other bank.

Log in to your e-banking account and enter the details of the receiver’s bank account and branch details. The transfer takes place immediately.


3.) Credit card transactions :-

Pay credit card bills online, request loan on the card, apply for additional card, report loss of card online.


4.) Investing through Internet banking :-

Users can open Fixed Deposit accounts online.


5.) Bank account and demat accounts can be linked and users can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited to the demat account.


6.) Purchase mutual funds online


7.) Recharging your prepaid phone :-

Recharge the phone with the required amount online. Enter the operator’s name, mobile number and amount for the recharge.


8.) Online Shopping and payment

Shop online and make payments through your account online.

You can also buy railway and air tickets through Internet banking.


Components of E-banking

The following components or processes are there in a typical e-banking institution

  • Website designing and Hosting

  • Firewall Configuration and management

  • Network management

  • Security and privacy management

  • Internet banking server

  • E-commerce applications (payment processing)

  • Network Servers

  • Programming support, Core Processing

Security Issues and Precautions

  • Privacy and security can be concerns when doing e-banking.
  • Since the internet is a public network, privacy of your personal confidential information can be a concern.
  • E.g. Credit card numbers, Social Security numbers and other personal information must be transmitted in a secure manner.
  • Customers should never share personal information like passwords, PIN number with anyone.
  • Customers should not provide sensitive data over the phone or email.
  • Always change you pin and passwords at frequent regular intervals.
  • Ensure that when you have finished working, log out properly to end the session.
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Akash Padhiyar

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