E-BANKING By Kritika Sharma

Definition
The remote delivery of new and traditional banking products and services through electronic delivery channels. E-banking is an abbreviation for electronic banking. Ebanking allows you to conduct bank transactions online, instead of finding a bank and interacting with a teller.

E-banking involves information technology based banking. Under this I.T system, the banking services are delivered by way of a Computer-Controlled System. This system does involve direct interface with the customers. The customers do not have to visit the bank's premises

ADVANTAGES OF E-BANKING
Anywhere Banking. Anytime Banking. The customer can easily transfer the funds from one place to another place electronically. The operating cost per unit services is lower for the banks. The reach and delivery capabilities of computer networks, such as the Internet, are far better than any branch network.

 The Growth of credit card usage also owes

greatly to E-banking. Now a customer can shop world wide without any need of carrying paper money with him. Internet banking offers a great deal more convenience than you could get from a conventional bank. E banking has also greatly helped in payment of utility bill. Now there is no need to stand in long queues outside banks for his purpose.

 Many repetitive and tedious tasks have now been fully automated resulting in greater efficiency, better time usage and enhanced control.

The rise of E-banking has made banks more competitive. It has also led to expansion of the banking industry, opening of new avenues for banking operations

E-BANKING FRAUDS
Phishing Spam Nigerian Scam Spyware

E-Banking Risks.
Transaction/operations Risk. Credit Risk. Liquidity Risk. Compliance Risk/ Legal Risk. Strategic Risk.

Reputation Risk.

Recent Technological Development in Indian Banking Sector.

ATM Credit Cards Debit Cards. Electronic Fund Transfer

ATM
ATM Automated Teller machine ATMs are electronic machines, which are operated by a customer himself to deposit or to withdraw cash from bank or to deposit bills or to obtain a balance enquirie replacing the cheque, banking hours restrictions . For using an ATM, a customer has to obtain an ATM card from his bank. The ATM card is a plastic card, which is magnetically coded. It can be easily read by the machine.

Benefits of ATMs
ATM provides 24 hours service ATM gives convenience to bank's customers ATM reduces the workload of bank's staff. ATM provide service without any error ATM is very beneficial for travellers ATM saves time for both customers and bank.

CREDIT CARDS

CREDIT CARDS
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card creates a account and grants a line of credit tothe consumer(or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. credit cards allow the consumers a continuing balance of debt, subject to interest being charged. The shape and size specified by the ISO7810 standard as ID-1. This is defined as 85.60 53.98 mm (33/8 21/8 in) in size.

 The numbers found on credit cards have a certain amount of internal structure, and share a common numbering scheme. The card number's prefix, called the Bank Identification Number, is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. The next nine digits are the individual account number, and the final digit is a validity check code.

In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Not all credit cards have the same sets of extra codes nor do they use the same number of digits.

Benefits of Credit Cards

Easy to carry. Dont get spoiled like paper currency. Increase purchasing power. Can be used as marketing tools by banks as they open up relationship with merchants, retailers.

Drawbacks
Waste of money. Thoughtless buying Financial problem.

DEBIT CARDS
An electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. This removes the need for bank clients to go to the bank to remove cash from their account as they can now just go to an ATM or pay electronically at merchant locations. This type of card, as a form of payment, also removes the need for checks as the debit card immediately transfers money from the client's account to the business account.

Advantages of Debit Cards

Most of these debit cards have the MasterCard or Visa logos hence are accepted everywhere these logos are. Very convenient substitute to cheque when shopping online. Allows you stay within your budget since you can only spend what is on the account. Be advised though that most lending institutions have an overdraft protection offer that allows consumers exceed the balance. There is a catch though, you will pay an interest and perhaps some extra fees charged on the money borrowed from the overdraft account. It takes a shorter time to complete a purchase since one doesnt have to wait for a cheque to get approved. Further, you wouldnt have to carry a chequebook, travelers check or worse still cash

DISADVANTAGES
You may incur bank fees like annual or sometimes even monthly service charges, or sometimes dropping past your minimum acceptable balance. As such, you should ensure you discuss all charges and possible fees with your lending bank If you are used to getting user rewards, forget them as they arent applicable with debit cards Note that the debit card doesnt improve your credits core because it isnt a credit card and is never reported to credit reporting bureaus. It is very hard to resolve disputed charges because unless you own a PIN-based direct debit card, whoever knows your PIN can use the car

Electronic Fund Transfer(EFT)

BENEFITS
Considerable reduction in transaction time. Minimum or no paperwork involved. Fast and easy to use. Anytime anywhere banking. No need to go to the bank and form queues

THANK YOU.