Internet banking, also known as online banking or e-banking, is a facility offered by banks and financial institutions that allows customers to use banking services over the Internet. Internet banking has revolutionized the way people conduct their banking transactions, making it more convenient, efficient, and secure. In this article, you will explore some of the amazing features and advantages of Internet banking that you need to know.
Features of Internet Banking
While the features of Internet banking may differ among different banks, here are some of the primary features of online banking that most account holders can enjoy:
1. Account Management: Users can view their account balances, transaction history, and account details online. They can also manage multiple accounts, such as current accounts, savings accounts, credit card accounts, and loans from a single online platform. Want to know about the use of credit cards in India?
2. Fund Transfers: Another significant advantage of using Internet banking is online fund transfers. Internet banking allows users to transfer funds through different modes like NEFT, RTGS, IMPS, or UPI. Funds can be transferred between their accounts as well as to other accounts within the same bank or accounts in different banks. Fund transfers can be done in real-time depending upon the mode of transaction selected.
3. Bill Payment: Users can pay their bills online using Internet banking. These include utility bills, credit card bills, or even loan repayments. They can also recharge prepaid mobile phones, purchase gift cards, and make other online payments.
4. Online Statements and Alerts: Internet banking provides users with access to their account statements online. This eliminates the need for paper statements or updating passbooks. Users can also set up alerts and notifications to receive updates on their account activities.
Advantages of Internet Banking
Internet banking offers ample advantages that make it a preferred mode of transaction among individuals and businesses. Some of the key advantages of internet banking include:
1. Availability: You can avail of the banking services round the clock throughout the year. Most of the services offered are not time-restricted; you can check your account balance at any time and transfer funds without having to wait for the bank to open.
2. Easy to Operate: Using the services offered by online banking is simple and easy. Many find transacting online a lot easier than visiting the branch for the same.
3. Convenience: You need not leave your chores behind and go stand in a queue at the bank branch. You can complete your transactions from wherever you are. Pay utility bills, recurring deposit account installments, and others using online banking.
4. Time Efficient: You can complete any transaction in a matter of a few minutes via Internet banking. Funds can be seamlessly transferred between own accounts or to other accounts, including accounts in different banks, in just a few clicks. This eliminates the need for physical visits to the bank and provides greater convenience and efficiency in undertaking banking transactions.
Disadvantages of Internet Banking
Despite the numerous benefits of Internet banking, there are some limitations or disadvantages that you should be aware of. Some of the common disadvantages of Internet banking are:
1. Internet Requirement: An uninterrupted Internet connection is a foremost requirement to use Internet banking services. If you do not have access to the internet, you cannot make use of any facilities offered online.
2. Security Risks: Internet banking involves the risk of cyberattacks, phishing, hacking, identity theft, and fraud. Users need to be careful about their login credentials, passwords, OTPs, and other sensitive information. They should also avoid using public or unsecured networks or devices to access their Internet banking accounts.
3. Technical Issues: Sometimes, internet banking may face technical glitches, errors, or downtime due to maintenance or other reasons. This may cause inconvenience or delay in completing the transactions or accessing the services.
4. Lack of Personal Interaction: Internet banking reduces the need for personal interaction with the bank staff or representatives. This may affect the customer service quality or the relationship between the customers and the bank. Some customers may also prefer the traditional way of banking over the online mode.
Features and Advantages of Internet Banking: Common FAQs
1. What is internet banking and how does it work?
Internet banking is a facility that allows you to access and manage your bank accounts and services online using a computer, smartphone, or tablet. You can perform various banking transactions such as checking your balance, transferring funds, paying bills, opening deposits, applying for loans, and more without visiting the bank branch. To use Internet banking, you need to register with your bank and create a user ID and password. You also need to have a stable internet connection and a compatible device and browser.
2. What are the benefits of Internet banking?
Internet banking offers many benefits such as convenience, speed, security, and flexibility. You can access your bank accounts anytime and anywhere, without any time or location constraints. You can also save time and money by avoiding the hassle of visiting the bank branch, filling out forms, and waiting in queues.
3. What are the risks of Internet banking and how can I avoid them?
Internet banking also involves some risks such as cyberattacks, phishing, hacking, identity theft, and fraud. These are attempts by malicious actors to steal your personal and financial information or to trick you into making unauthorized transactions. You can avoid these risks by following some best practices such as:
- Never share your user ID, password, OTP, or other sensitive information with anyone, even if they claim to be from the bank or a trusted source.
- Always use a secure network and device to access your Internet banking account. Avoid using public or unsecured WiFi, computers, or mobile phones.
- Always monitor your account activity and statements regularly. Report any suspicious or unauthorized transactions to your bank immediately.
4. How can I register for internet banking and what are the requirements?
You can register for internet banking in different ways depending on your bank and the type of account you have. Some of the common ways are:
- Online: You can visit the official website of your bank and click on the internet banking option. You will need to enter your account number, debit card number, ATM PIN, and other details to verify your identity. You will then be able to create your user ID and password and activate your internet banking account. Want to know about the use of debit cards in India?
- Branch: You can visit your nearest bank branch and fill up an internet banking application form. You will need to provide your account number, PAN, mobile number, email ID, and other details. You will then receive your user ID and password by mail or SMS and you can use them to log in to your internet banking account.
- Call center: You can call the customer care number of your bank and request Internet banking registration. You will need to provide your account number, debit card number, ATM PIN, and other details to verify your identity. if you have any questions about debit cards, you can go through it now.
5. What are the features and services available on Internet banking?
Internet banking offers a wide range of features and services that enable you to perform various banking transactions online. Some of the common features and services are:
- Account management: You can view your account details, balance, transaction history, and statement online.
- Fund transfer: You can transfer funds to your accounts or other accounts within the same bank or to accounts in different banks. You can also transfer funds to Visa credit cards or mobile wallets.
- Bill payment: You can pay your bills online using Internet banking. These include utility bills, such as electricity, water, gas, telephone, and broadband, credit card bills, loan EMIs, insurance premiums, and taxes.
- Online shopping: You can shop online and pay using internet banking. You can choose from various merchants and e-commerce platforms that accept Internet banking as a mode of payment. You can also purchase gift cards, vouchers, or tickets online using internet banking.
- Fixed deposit: You can open, renew, or close fixed deposits online using internet banking. You can also view the interest rates, maturity dates, and tax benefits of your fixed deposits online. You can also link your fixed deposits to your savings account for an overdraft facility.