Professional Documents
Culture Documents
Final Individual Project
Final Individual Project
E-BANKING IN INDIA
TYBBI
E-BANKING IN INDIA
E-Banking Project
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TOPIC
INTRODUCTION
DEFINITION
FEATURES OF E-BANKING
SECURITY MEASURES
FRAUD OR RISK IN E-BANKING
BENEFITS OF E-BANKING
TYPES OF E-BANKING PRODUCTS
CHALLENGES AND APPORTUNITIES OF EBANKING
HOW E-BANKING CAN EASE YOUR LIFE
INTERNET BANKING V/S TRADITIONAL
BANKING
CONCLUSION
BIBLIOGRAPHY
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E- BANKING IN
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Introduction:
Electronic banking is an umbrella term for the process by which a
customer may perform banking transactions electronically without visiting a
brick-and-mortar institution. The following terms all refer to one form or
another of electronic banking: personal computer (PC) banking, Internet
banking, virtual banking, online banking, home banking, remote electronic
banking, and phone banking. PC banking and Internet or online banking are
the most frequently used designations. Customers access e-banking services
using an intelligent electronic device, such as a personal computer (PC),
personal digital assistant (PDA), automated teller machine (ATM), kiosk, or
Touch Tone telephone.
This allows customers to do their banking outside of bank hours and from
anywhere where Internet access is available. In most cases a web browser
such as Internet Explorer or Mozilla Firefox is utilized and any normal
Internet connection is suitable. No special software or hardware is usually
needed.
Like any other business you have to select a bank that has a good
reputation and thats very important because you will be providing them
with your account number and password. It is also advisable to save or
print any transaction done on your behalf.
Online banking isn't out to change your money habits. Instead, it uses
today's computer technology to give you the option of bypassing the timeconsuming, paper-based aspects of traditional banking in order to manage
your finances more quickly and efficiently.
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E-BANKING IN INDIA
Definition:
E-banking is 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.
Customers access e-banking services using an intelligent electronic device,
such as a personal computer (PC), personal digital assistant (PDA),
automated teller machine (ATM), kiosk, or Touch Tone telephone. While the
risks and controls are similar for the various e-banking access channels, this
booklet focuses specifically on Internet-based services due to the Internets
widely accessible public network. Accordingly, this booklet begins with a
discussion of the two primary types of Internet websites: informational and
transactional
Our e-banking and e-commerce solutions facilitate integration with a variety
of electronic delivery channels, like ATM, tele-banking, Internet and mobile
banking, and call centre operations. And our development efforts have
helped us design popular e-Banking products such as eTreasury, eBankWorks
and eHelpdesk, an Internet-based assistance tool.
The flexibility of our business offerings provides our banking clients the
choice of engaging us right through to implementation, or only up to a
particular stage, or to even proceed from wherever another consultant may
have left off. The considerable experience that we bring to the table makes
our highly regarded implementation and integration expertise available to
your organization. And we focus on the functional perspective rather than
on the information system.
Electronic banking, also known as electronic funds transfer (EFT), is simply
the use of electronic means to transfer funds directly from one account to
another, rather than by cheque or cash. You can use electronic funds
transfer to:
Have your paycheck deposited directly into your bank or credit union
checking account
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Withdraw money from your checking account from an ATM machine with
a personal identification number (PIN), at your convenience, day or night.
Instruct your bank or credit union to automatically pay certain monthly
bills from your account, such as your auto loan or your mortgage payment.
Have the bank or credit union transfer funds each month from your
checking account to your mutual fund account.
Have your government social security benefits check or your tax refund
deposited directly into your checking account.
Buy groceries, gasoline and other purchases at the point-of-sale, using a
check card rather than cash, credit or a personal check.
Use a smart card with a prepaid amount of money embedded in it for use
instead of cash at a pay phone, expressway road toll, or on college
campuses at the library's photocopy machine or bookstores.
Use your computer and personal finance software to coordinate your total
personal financial management process, integrating data and activities related
to your income, spending, saving, investing, record keeping, bill-paying and
taxes, along with basic financial analysis and decision making .
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E-BANKING IN INDIA
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Features of "e-banking":
You can do all of your banking 24 hours a day, seven days a week.
Internet banking is simply a means of providing Customers with more
banking choices.
Many of the transactions you do over-the-counter can now be done on
the Internet, on a computer, in your home - or anywhere else in the
world.
E-banking provides a range of convenient online banking services.
Transaction History - an online list of your transactions with a
convenient search option.
Bill payment provider.
Pay all your bills online.
Pay Anyone - transfer funds to any account.
Security Measures:
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E-BANKING IN INDIA
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E-BANKING IN INDIA
Benefits of e-banking
In recent time E-banking has spread rapidly all over the globe. All Banks
are making greater use of E-banking facilities to provide batter service and
to excel in competition. The spread of E-banking has also greatly benefited
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Benefits to Consumers:
General consumers have been significantly affected in a positive manner by
E-banking. Many of the ordinary tasks have now been fully automated
resulting in greater ease and comfort.
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.
Beside withdrawing cash customers can also have mini banks statements,
balance inquiry at these ATMs
Through Internet banking customer can operate his account while sitting in
his office or home. There is no need to go to the bank in person for such
matter.
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.
All services that are usually available from the local bank can be found
on a single website.
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.
Banks are available 24 hours a day, seven days a week and they are only
a mouse click away.
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1] ONLINE BANKING
2] MOBILE BANKING
3] TELE BANKING
4] AUTOMATED TELER MACHINE (ATM)
5] CREDIT CARD
6] DEBIT CARD
Online banking:
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Since the internet has become a popular place to buy and sell goods, online
banking services have made their way into most homes. Easier to pay bills,
manage money, and transfer money to other accounts, internet banking is a
convenient way to handle money. Many employers now have direct deposit,
which makes it easier to put money into one's account. No more trips to
the bank every day. The money is in the account the night before and is
available for use on next morning. Most banks now offer some type of
banking
services
on
the
net
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3] Requests
Request a cheque book or give stop payment instructions.
4] Bill Payments
Our Bill Payment facility allows you to pay your utility bills online, at
your convenience.
5] Other Services
Services (Secure Mail box and Bulletins).
6] Protection Cover
As a personal customer, you are fully protected against third party fraud
when banking using Barclays Online Banking/mobile banking. You will not
suffer any loss if money is taken from your account without your
permission provided you have not acted fraudulently or negligently.
7] Security
Admittedly, such a service requires complete privacy protection and security
of the highest nature. We provide a completely secure environment, using
128-bit encryption SSL (Secure Sockets Layer), digitally certified by
Verisign. 128-bit SSL guarantees world-class security for Internet and ecommerce applications.
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Disadvantages
The world has come from far and we are every day digging into the
unknown, what was unthinkable then is now a practice. Today, you can
bank right from the comfort of you home and benefits come with it.
However, though internet banking is such a good and desirable innocent, it
has some disadvantages as listed;
1] Setting up an account may take time:
In order to register for your bank's online program, you will probably have
to provide ID and sign a form at a bank branch. Some banks even ask for
photos
2] Legal issues:
If you and your spouse wish to view and manage your assets together
online, one of you may have to sign a durable power of attorney before the
bank will display all of your holdings together.
3] Learning difficulties:
Banking sites can be difficult to navigate at first. Getting acquitted with the
banking sites software may require some time to read the tutorials in order
to become comfortable in your virtual lobby.
4] Site changes and upgrades:
Even the largest banks periodically upgrade their online programs, adding
new features in unfamiliar places. In some cases, you may have to re-enter
account information.
5] Customer service:
There is no personal contact with any of the staff, and if talk to any staff
through the telephone, you have guarantee you are talking to the best
person available
6] Internet account:
You need to get an account with an Internet Service Provider (ISP) which
may be another hectic experience
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7] Security concern:
Even though online banking sites are heavily encrypted, with the
developing technology, its hard to rule out the "hackers" who may access
your bank accounts
8] Switching banks:
This can be more cumbersome online than in person
9] Money usage:
You cant spend your money from the online bank account as you wish, in
the end; you will need to go to an ATM to withdraw money for usage.
MOBILE BANKING:
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2] You can make transactions or pay bills anytime. It saves a lot of time.
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5] Banking through mobile reduces the risk of fraud. You will get an
SMS whenever there is an activity in your account. This includes deposits,
cash withdrawals, funds transfer etc. You will get a notice as soon as any
amount is deducted or deposited in your account.
6] Banking through cell phone benefits the banks too. It cuts down on the
cost of tele- banking and is more economical.
9] Banks can also promote and sell their products and services like credit
cards, loans etc. to a specific group of customers.
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11] You can transfer money instantly to another account in the same bank
using mobile banking.
Mobile banking has become really popular owing to the convenience that it
gives its customers. You can access your account, pay bills, and make cash
transfers through cell phone banking. It offers many benefits over internet
banking and banking in person. With the wide range of mobile connectivity,
mobile banking through cell phone can be accessed by anyone.
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E-BANKING IN INDIA
Most banks are not charging their customers additional fees for this service.
However, your cell phone bill will increase due to Internet usage. Some
mobile banking programs also allow customers to pay their bills from their
phone. In this regard, the service might actually be less expensive than
online bill payment programs.
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5. Inter-operability
Banks offering mobile banking service must ensure that customers
having mobile phones of any network operator is in a position to
avail of the service. Restriction, if any, to the customers of particular
mobile operator(s) is permissible only during the initial stages of
offering the service, up to a maximum period of six months subject
to review.
The long term goal of mobile banking framework in India would be
to enable funds transfer from account in one bank to any other
account in the same or any other bank on a real time basis
irrespective of the mobile network a customer has subscribed to. This
would require inter-operability between mobile banking service
providers and banks and development of a host of message formats.
To ensure inter-operability between banks, and between their mobile
banking service providers banks shall adopt the message formats like
ISO 8583, with suitable modification to address specific needs.
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7.
E-BANKING IN INDIA
8. Transaction limit
A per transaction limit of Rs. 2500/- shall be imposed on all Mobile
Banking transactions. Subject to an overall cap of Rs. 5000/- per day,
per customer.
Banks may also put in place monthly transaction limit depending on
the banks own risk perception of the customer.
9. Board approval
Approval of the Board of Directors (Local Board in case of foreign
banks) for the product as also the related security policies must be
obtained before launching the scheme.
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TELE BANKING
Telebank helps track and control finances, all from the comfort of home or
office. Designed to save time and money, Telebank allows 24 hour access
to bank accounts via the telephone. You can access current balances, transfer
money between accounts, and much more. It is safe and secureand free!
United Bank of India offers Tele-Banking Services to its Retail Customers.
The IVR (Interactive Voice Response) supports three languages Hindi,
English & Bengali. The facility is available for Savings, Current, Cash
Credit, Overdraft, Deposit and Loan accounts.
FEATURES
BANKING:
AND
BENEFITS
OF
TELEPHONE
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orders
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BENEFITS OF ATM:
Benefits for Consumers
Use an ATM card to keep accurate records of banking transactions. Monthly
statements, usually available online or printed and mailed, itemize each
transaction made with the card. This benefit leads to fewer accidental
overdrafts, and provides a visual record of spending habits, unlike using cash.
Transactions are processed quickly with an ATM card. Sliding the card is faster
than writing a check, more accurate than paying with cash (since change can
be miscounted), and makes some transactions quicker. For example, using an
ATM card at a gasoline pump eliminates the hassle of standing in line in a
convenience store to complete the sale. After a quick swipe and approval, a
receipt is often printed at the gas pump for user convenience. ATM cards are
usually free, according to Merchant's State Bank. Unlike checks, many financial
institutions do not charge their customers for an ATM card.
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E-BANKING IN INDIA
When consumers use ATM cards to pay for purchases, funds are deposited
quickly into the business account. In as little as 48 hours, businesses will have
access to money from ATM card transactions. Checks can take up to seven
days to clear, putting a hold on accessible funds. Business owners pay to offer
the convenience of credit card transactions for their customers. For each
transaction, a small percentage is paid to the credit card company as a
convenience fee. ATM card transactions are a win-win for both the businesses
that accept the ATM card and the consumer. When consumers pay retailers
with an ATM card, the business owner doesn't have to pay a fee. And,
consumers don't have to pay interest or annual fees when using an ATM card,
like they would with use of a credit card.
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Security
Unlike bank tellers, ATMs do not require the
person performing the transaction to present a picture identification. Rather,
the person must only insert a bank card and enter a personal identification
number. If the bank card is stolen and the number ascertained, an
unauthorized person can easily access the account.
Fees
With the advent of ATMs came ATM fees. Not only do banks
of which you are not a member charge fees for the use of their ATMs, but
users are often charged surreptitious fees by their own banks for using other
banks' ATMs--meaning the customer is docked twice for the same
transaction.
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Privacy
Unlike banks, in which security guards and tellers are present to
ensure the person performing a transaction receives privacy, there is no such
guarantee when using an ATM. People may try to spy on users as delicate
information appears on the screen, without the user being aware.
Difficulty of Use
The performance of business at an ATM is generally quicker than
that at a human teller. However, the ATM is incapable of providing
personalized instruction to the user in a way that a human teller can. This
can result in longer wait times if the user currently using the machine is
struggling to complete a transaction.
Eating a Card
Occasionally, ATMs will malfunction and swallow a user's ATM
card. The customer will then be directed to contact a service number or
their bank and wait for a repair technician to retrieve this card. While this
happens only rarely, if it occurs on a weekend or at night, the user may be
left to wait for several days before they can again use their card, something
that would not happen with a human cashier.
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Debit
card:
A debit card (also known as a bank card or check card) is a plastic card
that provides the cardholder electronic access to his or her bank account(s)
at a financial institution. Some cards have a value with which a payment is
made, while most relay a message to the cardholder's bank to withdraw
funds from a designated account in favor of the payee's designated bank
account. The card can be used as an alternative payment method to cash
when making purchases. In some cases, the primary account number is
assigned exclusively for use on the Internet and there is no physical card. [1]
[2]
In many countries, the use of debit cards has become so widespread that
their volume has overtaken or entirely replaced cheques and, in some
instances, cash transactions. The development of debit cards, unlike credit
cards and charge cards, has generally been country specific resulting in a
number of different systems around the world, which were often
incompatible. Since the mid 2000s, a number of initiatives have allowed
debit cards issued in one country to be used in other countries and allowed
their use for internet and phone purchases.
Unlike credit and charge cards, payments using a debit card are immediately
transferred from the cardholder's designated bank account, instead of the
them paying the money back at a later date.
Debit cards usually also allow for instant withdrawal of cash, acting as the
ATM card for withdrawing cash. Merchants may also offer cash back
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facilities to customers, where a customer can withdraw cash along with their
purchase.
Unlike when you write a check, using a debit card saves you from
having to show identification or give out personal information at the
time of the transaction.
Most ATMs will allow you to get a cash advance against the line of
credit on your credit card, using your credit card and a separate PIN.
You do not necessarily have to have a bank account to do this.
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Unlike a credit card, debit card transactions give you no grace period.
They are a quick, pay-now deal.
They can make balancing your account tricky if you are not fastidious
about keeping receipts and recording transactions in a timely fashion.
It is easy to forget, for example, when you pay at the gas pump with
a debit card and drive off without your receipt.
Using a debit card may mean you have less protection than you
would with a credit card for goods that are never delivered, are
defective or were misrepresented. But, as with credit cards, you can
dispute unauthorized charges or other mistakes within 60 days. Contact
your bank if a problem with a merchant cannot be resolved.
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Disadvantages:
1. You may become an impulsive buyer and tend to overspend because
of the ease of using credit cards. Cards can encourage the purchasing
of goods and services you cannot really afford.
2. Credit cards are a relatively expensive way of obtaining credit if you
don't use them carefully, especially because of the high interest rates
and other costs.
3. Lost or stolen cards may result in some unwanted expense and
inconvenience.
4. The use of a large number of credit cards can get you even further
into debt.
TELEBANKING :
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Telebank helps track and control finances, all from the comfort of home or
office. Designed to save time and money, Telebank allows 24 hour access
to bank accounts via the telephone. You can access current balances, transfer
money between accounts, and much more. It is safe and secureand free!
United Bank of India offers Tele-Banking Services to its Retail Customers.
The IVR (Interactive Voice Response) supports three languages Hindi,
English & Bengali. The facility is available for Savings, Current, Cash
Credit, Overdraft, Deposit and Loan accounts.
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electricity and telephone bills, mobile phone, credit card and insurance
premium bills.
To pay your bills, all you need to do is complete a simple one-time
registration for each biller. You can also set up standing instructions online
to pay your recurring bills, automatically. One-time standing instruction will
ensure that you don't miss out on your bill payments due to lack of time.
Most interestingly, the bank does not charge customers for online bill
payment.
Fund transfer
You can transfer any amount from one account to another of the same or
any another bank. Customers can send money anywhere in India [ Images ].
Once you login to your account, you need to mention the payees account
number, his bank and the branch. The transfer will take place in a day or
so, whereas in a traditional method, it takes about three working days.
ICICI Bank says that online bill payment service and fund transfer facility
have been their most popular online services.
Railway pass
[ Images ] and Pune. The bank would just charge Rs 10 + 12.24 per cent
of service tax. This is something that would interest all the aam janta.
Indian Railways has tied up with ICICI bank and you can now make your
railway pass for local trains online. The pass will be delivered to you at
your doorstep. But the facility is limited to Mumbai [ Images ], Thane,
Nashik, Surat
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Opening a fixed deposit account cannot get easier than this. You can now
open an FD online through funds transfer. Online banking can also be a
great friend for lazy investors.
Now investors with interlinked demat account and bank account can easily
trade in the stock market and the amount will be automatically debited from
their respective bank accounts and the shares will be credited in their demat
account.
Moreover, some banks even give you the facility to purchase mutual funds
directly from the online banking system.
So you need not worry about filling those big forms for mutual funds, they
will now be just a few clicks away. Nowadays, most leading banks offer
both online banking and demat account. However if you have your demat
account with independent share brokers, then you need to sign a special
form, which will link your two accounts.
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banking. But here are few cases where Internet banking will turn out to be
a better option in terms of saving your money.
'Stop payment' done through Internet banking will not cost any extra fees
but when done through the branch, the bank may charge you Rs 50 per
cheque plus the service tax.
Through Internet banking, you can check your transactions at any time of
the day, and as many times as you want to.
On the other hand, in a traditional method, you get quarterly statements
from the bank and if you request for a statement at your required time, it
may turn out to be an expensive affair. The branch may charge you Rs 25
per page, which includes only 30 transactions. Moreover, the bank branch
would take eight days to deliver it at your doorstep.
If the fund transfer has to be made outstation, where the bank does not
have a branch, the bank would demand outstation charges. Whereas with the
help of online banking, it will be absolutely free for you.
As per the Internet and Mobile Association of India's report on online
banking 2006, "There are many advantages of online banking. It is
convenient, it isn't bound by operational timings, there are no geographical
barriers and the services can be offered at a miniscule cost."
Security Precautions
Customers should never share personal information like PIN numbers, passwords etc with
anyone, including employees of the bank. It is important that documents that contain
confidential information are safeguarded. PIN or password mailers should not be stored,
the PIN and/or passwords should be changed immediately and memorized before
destroying the mailers.
Customers are advised not to provide sensitive account-related information over unsecured
e-mails or over the phone. Take simple precautions like changing the ATM PIN and
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online login and transaction passwords on a regular basis. Also ensure that the logged in
session is properly signed out.
CONCLUSION
While electronic banking can provide a number of benefits for
customers and new business opportunities for banks, it exacerbates
traditional banking risks. Even though considerable work has been
done in some countries in adapting banking and supervision
regulations, continuous vigilance and revisions will be essential as
the scope of e-banking increases. In particular, there is still a need
to
establish
greater
harmonization
and
coordination
at
the
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Website :
www.thefreedictionery.com
www.google.com
o http://kalyan-city.blogspot.in/2011/02/e-banking-onlinebanking-advantages-of.html
o http://www.rediff.com/money/2006/nov/17mc.htm
o http://www.worldjute.com/ebank.html
o http://www.scribd.com/doc/21099962/Project-on-E-Banking
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www.yahoo.com
o http://www.scribd.com/doc/19146199/ebanking
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