E-Banking - Meaning, Benefits, Internet Banking and

Introduction to Electronic Banking

The session introduces the concept of electronic banking, highlighting its significance and convenience in modern-day life. It discusses the traditional banking system's limitations and the need for a shift towards computerized operations.

Understanding Electronic Banking

• Electronic banking, also known as virtual or online banking, utilizes information technology to deliver banking services through computer control systems.

• E-banking encompasses various electronic channels like telephone, mobile phones, and the internet for service delivery.

• Benefits of electronic banking include 24/7 account access, quick transactions, online payment facilities, and enhanced security measures.

Forms of Electronic Banking

This section delves into different forms of electronic banking such as internet banking and telephone banking, explaining their functionalities and benefits.

Internet Banking

• Internet banking allows customers to conduct financial transactions by logging into the bank's website securely.

• Customers can access various services through internet banking including balance inquiries, fund transfers, checkbook requests, and bill payments.

• Despite concerns about safety in internet banking usage, banks implement robust security measures like HTTPS protocols and multi-level authentication systems.

Telephone Banking

• Telephone banking offers services through an interactive voice system without requiring physical visits to banks or ATMs for non-cash transactions.

Electronic Banking Overview

This section provides an overview of electronic banking, focusing on the functionalities and benefits of Automated Teller Machines (ATMs) and the evolution of banking services driven by customer needs and technological advancements.

ATM Services

• ATMs allow for convenient withdrawal of money at any time from anywhere.

• Besides cash withdrawals, ATMs offer various other services to customers.

• ATM banking services are accessible 24/7, catering to customer needs round the clock.

Evolution of Banking Services

• Customers are willing to pay for services that offer flexibility and accessibility.

• Technological advancements have transformed traditional banking practices.

• Banking hours have shifted from fixed schedules to 24-hour availability through ATMs.

Mobile Banking Advancements

This part delves into mobile banking as a form of electronic banking, highlighting its features, benefits, and impact on reducing transaction costs for banks.

Mobile Banking Features

• Mobile banking enables customers to conduct financial transactions using smartphones.

• Services include account balance checks, bill payments, fund transfers, etc.

• It offers a secure and convenient way to manage accounts remotely.

Cost Reduction Through Mobile Banking

• Mobile banking decreases transaction handling costs for banks.

• It minimizes the need for physical visits to branches or ATMs for non-cash transactions.

• Cash-related activities still require in-person visits to banks or ATMs.

SMS and NUUP Banking

Exploring alternative methods for mobile banking without internet access through SMS and NUUP platforms.

NUUP Platform

• National Unified USSD Platform (NUUP) allows account access without internet connectivity.

• Users can check balances, transfer funds, and receive mini statements via NUUP service.

• Accessing account information is possible by dialing specific codes followed by bank IFSC code initials.

SMS Banking Features

• Basic mobile phones can perform various tasks like checking account info and last transactions through SMS commands.

Electronic Banking Overview

This section provides an overview of electronic banking, focusing on mobile wallets, mobile money, and online banking services.

Mobile Wallets

• Mobile wallets function as electronic prepaid cards for convenient payments without physical cards or online banking login.

• Advantages include enhanced security, cashback offers, and control over expenses by limiting wallet funds.

• Examples of mobile wallets are SBI's Buddy, ICICI Bank's Pocket, and standalone operators like Paytm and Citrus.

Mobile Money

• Mobile money accounts use the mobile number as the account number and offer services like fund transfers, bill payments, and cash withdrawals.

• Telecom providers offer mobile money services such as M-Pesa, BSNL's Oxygen, and Aircel Mobile Money.

Using Electronic Banking for Dicto TV

This section explains how to utilize mobile money and mobile wallets for subscribing to Dicto TV.

• To subscribe to Dicto TV via a mobile wallet in PTM app: log in to PTM, enter OTP received, and complete the subscription process.

Mail Banking and Home Banking

Discusses mail banking allowing communication with banks via email and home banking enabling account management from a designated location.

• Mail banking facilitates communication with banks through emails for services like account statements and transaction notifications.

• Home banking permits clients to manage accounts from predetermined locations using services like Star Connect Internet Login by Bank of India.

Mutual Funds and Commodity Market

This section discusses how banks assist individuals who lack knowledge about the share market by facilitating transactions on their behalf.

Bank Assistance in Share Market Transactions

• Banks can make transactions on behalf of individuals who lack knowledge about the share market.

• Bank personnel can provide guidance and execute transactions for customers.

• Targeting a large customer base is facilitated through bank assistance in share market dealings.

Bank Presence on Social Media

The text highlights how banks utilize social media platforms like Facebook, Twitter, and YouTube to disseminate product information and enable convenient banking services.

Utilization of Social Media Platforms

• Banks establish a presence on social media sites such as Facebook, Twitter, and YouTube to provide product information.

• Customers can deposit checks using mobile apps by scanning check images digitally.

• Introduction of mobile wallets allows direct payments at merchant locations through QR codes or mobile numbers with one-time passwords.

E-Banking Advancements

This segment emphasizes the evolution of e-banking services like mobile money and mobile wallets that enhance convenience for users.

Evolution of E-Banking Services

• Mobile money services provided by telecom network providers enable users to deposit money to their mobile numbers for purchases.

• E-banking facilitates better business operations anytime, anywhere.

• Increasing customer preference for electronic platforms signifies a shift towards e-banking services.

Online Banking Accessibility

The discussion focuses on the widespread availability of online banking websites and mobile apps offered by most banks to cater to customer needs efficiently.

Online Banking Convenience

• Most banks offer online banking websites and free downloadable mobile apps for basic banking transactions.