Internet Banking

Internet Banking - Concept

Many banks have their own websites that offer banking facilities on the internet. Internet banking has the protection and regulatory approvals similar to the brick and mortar banking at branches. Internet banking is one of the most powerful ways to manage the customer accounts. The customers can operate their accounts, such as savings account, credit card, or a loan account through the internet.

There are certain prerequisites of Internet banking. The customer should have the following:

• A bank account in which Internet Banking facility is activated
• User ID and password to log on to the Internet banking account
• Transaction password and ATM or debit card to transfer funds
• Internet connection for accessing the bank's website

Mode of Operation of Internet Banking

Each customer is given a unique user ID and password for the purpose of accessing Internet banking

With the help of user Id and password, the customers can log on to their accounts and carry out the transactions

Internet banking transmits data on a real time base to the core system of the bank

It helps the customers to virtually operate their account in the bank's core system without any intervention by the bank officials

Services Available through Internet Banking

The services offered by Internet banking enable customers to:

• View account balances and download statements
• Transfer funds between accounts (within the same bank as well as to other banks at specified locations)
• Create fixed deposits online
• Request for a Demand Draft [DD]
• Pay utility bills or life insurance premiums
• Order a cheques book
• Request stop payment on a cheque
• Request for a debit card
• Manage DeMat accounts
• Refill a prepaid mobile card
• Track dividends, interest received into their account on based on their investments including bonus shares
• Request for renewal and premature closure o fixed deposits and recurring deposits

The nature of facility extended by way of Internet banking would depend on the nature of account. In order to avail this facility, the customer needs to be a registered user under the Internet facility of the bank. Some banks may also levy charges for certain types of transactions through Internet banking. The details of such charges are to be separately ascertained from the concerned bank.

Benefits of Internet Banking

• Its real time and gives details on customers' accounts
• Can be accessed anytime, from anywhere, giving a complete control over customer's finances
• Does not involve customers to stand in queues
• Is quick and saves time
• Is a secured service

Safety measures for Internet Banking

For the customer:

• Customers should not share their user ID or password with anyone
• They should avoid using their passwords based on their name, spouse's name or the likes as they are easy to guess
• Should combine alphanumeric with special characters
• Must change passwords regularly
• Report any suspected misappropriation from their accounts to the bank immediately

For the banks:

• Generate and dispatch user IDs and passwords separately
• Prohibit the employees of the bank to ask customers for their User ID and password
• Randomly verify or authenticate the customer's ATM or debit card number.
• Maintain high level of security standards for websites.