Introduction

Electronic banking (or Internet Banking) is the technology that allows banking customers to do the things they would normally do at their bank from the comfort of home with a connection to the Internet Electronic banking means any user with a personal computer and a browser can get connected to his bank-s website to perform any of the virtual banking functions
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In electronic banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking.

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Definition
E-banking can be defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet.
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Overview of Banking
Banking system is the backbone of the economy and Information Technology in turn has become the backbone of banking activities The IT developments bring the customers closer to the banks and banks are able to offer multiple products/ services under Single-Window concept. The hi-tech multiple service channels and delivery mechanism provide a great opportunity to reach and inform the customers with much ease. The technology has its own role to play in branch banking activities with variety of options and innovative services. The E Banking concepts become popular when the banking activities and information technology are merged.
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Concept of E-Banking
Electronic Banking or ebanking is a web-based service the enables a banks customer access their account. It allows the customers to log on to the banks website with the help of a bank-issued identification and a personal identification number. The banking system verifies the user and provides access to the required services. The range of services and products offered by each bank differs widely in their content. The other aspect of e-banking is e-payment. Payment is generally known as a transfer of funds from the payer to the payee. The Electronic payment or e-payment is a payment carried out electronically. That is, the payment that is initiated, processed and received electronically is known as e-payment. In e-payment funds are held, processed and received in the form of digital information and their transaction is initiated via electronic instrument like ATM card.

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Importance of E-Banking
Customers Point of view : E-Banking offers substantial advantages to the customers in the form of convenience, timesaving and easy access to the banking services Banks Point of view : In this competitive world, E-banking helps the banks to attract more number of customers and tackle the competition from other banks. With the help of e-banking, banks can save time and hence they can increase the number of transactions and business
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Benefits of E-Banking
Benefits To Consumers : Customers account is extremely accesses able with an online account. Customer can withdraw can at any time through ATMs that are now widely available throughout the country

Benefits To Banking Industry: The growth of Ebanking has greatly helped the banks in controlling their over heads and operating cost. Many repetitive and tedious tasks have now been fully automated resulting in greater efficiency, better time usage and enhanced control
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Benefits To General Economy : Electronic Banking as already stated has greatly serviced both the general public and the banking industry. This has resulted in creation of a better enabling environment that supports growth, productivity and prosperity. Besides many tangible benefit in form of reduction if cost, reduced delivery time, increased efficiency, reduced wastage, e-banking electronically controlled and thoroughly monitored environment discourage many illegal and illegitimate practices associated with banking industry like money laundering, frauds and embezzlements.
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Types of E-Banking
PC Banking : It is a form of online banking that enables customers to execute bank transactions from a PC via a modem. In most PC banking ventures, the bank offers the customer a proprietary financial software program that allows the customer to perform financial transactions from his or her home computer. The customer then dials into the bank with his or her modem, downloads data, and runs the programs that are resident on the customer's computer. Currently, many banks offer PC banking systems that allow customers to obtain account balances and credit card statements, pay bills, and transfer funds between accounts.
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Internet Banking : Internet Banking sometimes called online banking , is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity. For E.g. transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit.
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E-Banking Services
Electronic Data Interchange (EDI): EDI is a technique used to communicate business, financial and transaction information between computer systems of different organizations and their business partners. Automated Teller Machine (ATM): ATM is a device that allows customers who have an ATM Card to perform routine banking transactions without interacting with the human teller.
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Electronic Clearing Service (ECS): The primary goal of any national payment system is to enable the circulation of money in its country. The payment system should be efficient and secure. The ECS is created to establish safe, secure, sound and efficient payment and settlement systems for the country. It can be divided into two categories namely
o Credit Clearing o Debit Clearing
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The ECS Credit Clearing is a mode of payment electronically instead of paper warrants. Through this ECS credit clearing, an institution makes a large number of payments like salaries, pension, interest, dividend to a large number of employees/exemployees/investors/share holders The ECS Debit Clearing is a mode of payments whereby an institution receives payments from a large number of customers/consumers. This method helps utility institutions, insurance companies, credit card companies and finance companies to collect the proceeds of telephone/electricity bills, insurance premiums or periodical installments, etc
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Plastic Card Currency : Plastic cards also known as plastic currency involving electronic device in their functioning is gaining popular as a convenient mode of payment. By using these plastic card, financial exchanges takes place on line between buyers and sellers. This exchange is in the form of digital financial instrument such as credit card numbers and debit card numbers backed by a bank or an intermediary. Recently several innovations helped to simplify consumer payment which includes Credit Cards, Debit Cards, ATM Cards and Smart Cards
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Security Questions
Q. Is security affected purely by user ID and password, or are there limitations on the PCs that can be used? There are no limitations on the PCs a user can use provided the PCs have the required specification and run the required version of Microsoft Internet Explorer. Security is built into e-banking through user Ids, passwords and digital certificates. It is important for customers to enforce procedures to protect that information. Q. What will I do if I, or one of my staff, forget their password for e-banking? In the event that a password is forgotten the individual must contact Bank for it to be changed. The individual will then be telephoned and asked questions on personal information previously supplied to Bank in order to verify their identity. They will then be notified of the new password, which must be changed immediately they next sign into e-banking. Q. Can other people see the information I enter in a payment instruction? No, only the receiver who is receiving the payment can see the information. Q. Can individual users be given view only permission? Yes, this is one of the flexible options available to clients.
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