This document provides an overview of digital banking in India. It begins with an acknowledgement and introduction on digital banking. It then lists and describes various types of digital banking available in India, including Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), and electronic banking. It discusses the impact of digital banking on consumers, outlining benefits like convenience and reduced risks, as well as disadvantages like vulnerability to hacks. The document concludes with noting the study's contribution to literature on digital banking diffusion.
This document provides an overview of digital banking in India. It begins with an acknowledgement and introduction on digital banking. It then lists and describes various types of digital banking available in India, including Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), and electronic banking. It discusses the impact of digital banking on consumers, outlining benefits like convenience and reduced risks, as well as disadvantages like vulnerability to hacks. The document concludes with noting the study's contribution to literature on digital banking diffusion.
This document provides an overview of digital banking in India. It begins with an acknowledgement and introduction on digital banking. It then lists and describes various types of digital banking available in India, including Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), and electronic banking. It discusses the impact of digital banking on consumers, outlining benefits like convenience and reduced risks, as well as disadvantages like vulnerability to hacks. The document concludes with noting the study's contribution to literature on digital banking diffusion.
This document provides an overview of digital banking in India. It begins with an acknowledgement and introduction on digital banking. It then lists and describes various types of digital banking available in India, including Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), and electronic banking. It discusses the impact of digital banking on consumers, outlining benefits like convenience and reduced risks, as well as disadvantages like vulnerability to hacks. The document concludes with noting the study's contribution to literature on digital banking diffusion.
Class: XII – C Roll NO : 23 School: Seth Anandram Jaipuria School INDEX TOPIC SLIDE NO. 1. Acknowledgement 4 2. Introduction 5 3. Types of Digital banking 6 7-10 4. Real Time Gross Settlement 11-14 5. National electronic fund transfer 15-18 6. Immediate Payment Services 19-22 7. Electronic Banking 23-25 8. Bank Draft 26 9. Impact on Consumers 27 10. Pros of Digital Banking on Consumers 28 11. Cons of Digital banking on consumers 29 12. Conclusion 30 13. Bibliography Acknowledgement
• I would like to express my special thanks of gratitude to my teacher
Mrs. Neha Dixit who gave the golden opportunity to do this wonderful project of Commerce on “Digital Banking”, through this project I came to know about many new things . Secondly I would like to thank my parents and friends who helped me a lot in finalizing this project within the limited time frame. Introduction Digital banking is part of the broader context for the move to online banking, where banking services are delivered over the internet. The shift from traditional to digital banking has been gradual and remains on-going, and is constituted by differing degrees of banking service digitization. Digital banking involves high levels of process automation and web-based services and may include APIs enabling cross-institutional service composition to deliver banking products and provide transactions. Types of Digital Banking • Real time gross settlement • National electronic fund transfer • Immediate payment service • Electronic Banking • Bank Draft Real Time Gross Settlement Real Time Gross Settlement, abbreviated as RTGS systems are specialist funds transfer systems where the transfer of money or securities takes place from one bank to any other bank on a "real-time" and on a "gross" basis. Settlement in "real time" means a payment transaction is not subjected to any waiting period, with transactions being settled as soon as they are processed. "Gross settlement" means the transaction is settled on a one-to-one basis, without bundling or netting with any other transaction. "Settlement" means that once processed, payments are final and irrevocable. RTGS (more info) • RTGS systems are usually operated by a country's central bank as it is seen as a critical infrastructure for a country's economy. Economists believe that an efficient national payment system reduces the cost of exchanging goods and services, and is indispensable to the functioning of the interbank, money, and capital markets. A weak payment system may severely drag on the stability and developmental capacity of a national economy; its failures can result in inefficient use of financial resources, inequitable risk-sharing among agents, actual losses for participants, and loss of confidence in the financial system and in the very use of money. National electronic fund transfer • NEFT is a countrywide system by which an individual, firm or company can electronically transfer funds from any bank to another individual , firm or company having an account with any other bank branch in the country . The funds transfer take place at a particular period of time . NEFT (more info) • National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of India (RBI). Started in November 2005, the setup was established and maintained by Institute for Development and Research in Banking Technology. NEFT enables bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis. It is done via electronic messages. • Unlike real-time gross settlement, fund transfers through the NEFT system do not occur in real-time basis. Previously, NEFT system settled fund transfers in hourly batches with 23 settlements occurring between 00:30 hrs. to 00:00 hrs. Immediate Payment Services • Immediate Payment Service is an instant money transfer service facilitated by NPCI . It allows people to send and receive funds in real time . • The facilities inter-bank transactions through mobile and internet banking. This has become a highly preferred mode for transferring funds for the large population of the country. IMPS (more info) • Immediate Payment Service (IMPS) is an instant payment inter- bank electronic funds transfer system in India. IMPS offers an inter- bank electronic fund transfer service through mobile phones. • The service is available 24x7 throughout the year including bank holidays. NEFT was also made available 24x7 from December 2019. RTGS was also made available 24x7 from 14th December 2020. • It is managed by the National Payments Electronic Banking
• Electronic Banking means banking
transactions carried out with the help of computer systems . Any user having PC and Browser can access the bank website and avail of banking services Electronic Banking • Online banking, also known as internet banking, web banking or home banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website. • The online banking system will typically connect to or be part of the core banking system operated by a bank to provide customers access to banking services in place of traditional branch banking. • Internet banking provides personal and corporate banking services offering features such as viewing account balances, obtaining statements, checking recent transactions, transferring money between accounts, and making payments. Impact on Users • Customer satisfaction is a measure of how products and services sup plied by a company meet or surpass customer expectation. Customer satisfaction is also defined as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products or its services exceeds specified satisfaction goals . • And yet another definition of customer satisfaction is it refers to the extent to which customers are happy with the products and/or services provided by a business. Further definition of customer satisfaction is it is a term generally used to measure a customer’s perception of a company’s products and/or services. • It’s not a straight forward science however, as customer satisfaction will vary from person to person, depending on a whole host of variables which may be both psychological and physical. Benefits of Digital Banking to Consumers • Users carry out banking work around the clock, with 24*7 availability of access to banking functions. • Banking has become paperless with the development of digital banking as a service • Digital banking allows a user to set up automatic payments for regular utility bills such as electricity, gas, phone, and credit cards. • Digital banking extending services to remote areas is seemingly a step toward holistic development. • Reduce the risk of counterfeit currency. Disadvantages of Digital Banking to Consumers
• Digital banking forums are prone to vulnerabilities and hacks such as
phishing, pharming, identity theft, and keylogging, banking institutions are investing a lot in their security systems. • If there’s a power outage, or if servers go down, you might not have any access to your account whatsoever. • With an online bank, you can’t simply drop off cash or a check at a local branch. • Inefficient at Complex Transactions. Conclusion • The study contributes to a bunch of literature on the Internet banking diffusion mainly with referring to individual level data on behavioral variables (particularly number of transactions and amounts of money kept on banking accounts). While previous literature investigated mostly the aggregate effect of e-banking introduction on banking performance. Bibliography • S Chand's ISC Commerce Class XII (2021 Edition) Book by C B Gupta. • https://www.temenos.com • https://www.bankbazaar.com