E-banking

By:-
Nivedita
Roy

Barnashree Chandra
Debraj
Sinha
Ashish
sureka
Sayan
Saha
 Imagine a scenario
A non-resident Indian (NRI) in Paris has an
easy way to access money in a bank in
india.
His Citibank account in India can be

accessed through an ATM in Paris, which in

turn transmits information to Citibank’s
central hub in the US.
The Indian rupees are converted to US

dollars, which are in turn converted into

French Francs at the current exchange rate,
the Indian account is debited and the
Francs made available to the NRI.
Welcome to the era of technology

banking !

Definition

“ It is an umbrella term for
the process by which a
customer may perform banking
transactions electronically
without visiting a brick-
and-mortar institution."

introduction



STARTED IN 1995.




Internet banking (or E-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.

In internet 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.
 What is e-banking ?
 Online banking or Internet banking
 In simple terms it does not
involve any physical exchange of
money, but it’s all done
electronically, from one account to
another, using the Internet.
 From a personal computer, you can
access your bank account
information, and perform many
banking functions, like transferring
money, making a loan payment

Advantages
Eliminates the use of paper and
replaces it with computer
screens
No need to stand in line at the
bank, because all you have to do
is log onto the internet &
access your account
It’s safe, hassle free, saves
hours of time a month

It comes with a world of other
benefits


o Interest earning checking accounts,

o Automatic bill payment
o ATM/Debit cards
o Credit Cards
o Direct Deposit
o Online Statements
o Loans
o Money market accounts
 Customer service
As an online bank customer, you have a
website that is at your disposal 24/7
You can get your online statement for
the month, week, day, or year
You can send e-mails with questions or
concerns
You can pay bills
E - Banking Setup
Elements of an E - Banking System
 Hardware
o Servers
o Storage device and database
o Communication channels and lines
o Gateways and remotely located devices
(e.g., thin clients or Internet appliances)
serving as interfaces between users and
computers
 Software
o Operating systems
o Firewalls
o Database management systems
o Security application programs.



E - Banking Setup
Area of security
 Authentication
o Verifying your identity using passwords/pass
phrases and certificates
 Confidentiality
 Non Repudiation
o Method by which the sender of data is
provided with proof of delivery and the
recipient is assured of the senders
identity
 Integrity
 Access Control
o Mechanisms and policies that restrict access
to computer resources
 Availability

Access control
 Access control restricts the flow of data
traffic
 Internet Banking uses firewalls in the
area of access control.
 Internet Banking two firewalls are used
o One before the Internet Banking server
o Before the SQL database
 Banking uses firewall which fall into two
categories
o Packet-filtering Gateways
o Proxy services.

Authentication
 Digital Certificate
o A digital certificate is an
electronic ID, which is verified by
a third party, a certification
authority (CA)
o The CA controls the Public Key
Infrastructure (PKI).
o A security certificate ,associates an
identity with a public key. Only the
owner knows the corresponding
private key that allows the owner to
"decrypt" or make a digital
signature.
o Eg Barclays UK’s Digital certificate

E - Banking Scenario
in india
 33 private banks and 43 foreign banks
 27 public sector banks account for over
84% of the total deposits and over 82%
of the total banking  advances in India
 Rough estimates assuming teller at Re 1
per transaction put ATM transaction
costs at 45p, phone banking at 35p,
debit cards at 20p and Internet banking
a measly 10p.
 Marriage of technology and banking is
inevitable to keep pace with changes in
the global scenario.
 Presently Net Banking facility is offered
by ICICI Bank, Citibank, HDFC Bank,
Global Trust Bank etc.

New Initiatives
 HDFC Bank is planning to introduce third
party payments whereby account holders
will be in a position to make payments
to predetermined parties through the
Net.
 The ICICI group has also launched an
Internet payment gateway for handling
Net transactions of its clients.
 HSBC is working on a comprehensive
interactive financial services in
collaboration with IBM which would be a
state-of-the-art local platform.

Online

Secure Payment
As per Mr. K.V.Kamath, MD and CEO ICICI Ltd.,
“Technology today, particularly via the internet, is
creating a platform-independent, low cost
communication infrastructure permeating all sectors
of the economy and providing an affordable
medium to conduct business”.
Online Services Offered


 Account information
 Funds transfer
 Requests and intimations
 Communication with your account
manager
 Online investments
 Online real time e-shopping payments
 Utility bill payments

drawbacks
 Security remainsThe infrastructural
costs of providing such services are
quite high.
 A bank not only has to automate its
front-end systems which the customer
interfaces with but also the back-end
systems so that the bank is able to
provide “robust functionality”.
 a major issue, especially in the case of
corporates, as bulk transactions are
done in a day.

phishing