Strength Finance

E-Banking – RECENT TREND IN INDIA

INTRODUCTION

Initially, the Indian banking system was domestically oriented at the time of nationalization in 1969. National policy objectives wherefores the guiding force and banks were primarily Involved in mobilizing domestic Savings, Lending funds two as the specific Sectors of the economy and raising resources for financing the public deficit. Technology in Indian banking ha evolved substantially from the days of back office automation today’s online, Centralized and integrated solutions. Once can not think of ATM, Internet, mobile and phone banking or call center services’ without the help of technology?. Howeve, the Irony is That of wine Those products garden of more technology and less of banking. Let us look of how banking ha changed as a business over the last one Decade.

This paper begins with the definition of e-banking, Internet Banking, Mobile Banking, ATMs, Debit card and credit card and electronic fund transfers, Anywhere banking and product and services.

ELECTRONIC Banking (E-Banking)

It is an umbrella term for the process by Which a Customer May perform banking Transactions electronically ‘without visiting a brick-and-mortar institution. The followings wing terms all reference stations two 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 and Internet banking or online banking are the mashed Frequently unusual designation. It Should Be noted, howeve, That the terms unusual two DESCRIBE the Various types of electronic banking are Often exceptionally interchangeably.

E-banking are the buzzwords in the global commercial activities today E-banking or electronic banking refers two Conducting banking activities with the help of information technology and computers.

E-banking is a mix of services Which include Internet banking, mobile banking, ATM kiosk, Fund Transfer System, Real Time Gross Settlement (payment and settlement system), Credit / Debit / Smart / Kisan Cards, Cash management services , and Data warehousing, Operational data for the MIS and Customer Relationship Management. Latest innovations in technology like broadband transmission, Internet access via mobiles (GSM) and WebTV provider goodwill Further impetus two digital revolution.

Further, banks are looking forward two scan the image of a Cheque Which Can ask zapped two Another bank, Into the depository and back to customer’s bank. (BSO, 2006) Banking Transactions Can pray carried out 24 hours a day needs something These Methods. In fact concept of Anytime, Anywhere banking is making it easy for the two access Customers Their Money more Conveniently. It ha Been ESTABLISHED That the increasing role of technology in a service organization serving two Can Reduce costs’ and Often Improve service reliability (Lee, 2002).

INTERNET Banking

The Internet banking is changing the banking industry and is Having the major effects Wed Banking Relationship. Even the Morgan Stanley Dean Witter Internet research emphasized That Web is More Important for retail financial services Than for Many Other industries. Internet banking involve use of Internet for delivery of banking products & services. It falls Into four main categories, from Level 1 – minimum functionality sites That victim only two access deposit account data – to Level 4 sites – Sophisticated Offerings Enabling highly integrated sales of Additional products and access two Other financial services-Such as investment and insurance. In other words a successful Internet banking solution offers

ü Exceptional rates Wed Savings, CDs, and IRAs

ü Checking with no monthly fees, free bill payment and ATM Surcharge Rebate Wed
Credit cards with low rates

ü Easy online applications for all accounts, Including personal loans and Mortgages

ü 24 hour account access

ü Quality customer service with personal attention

Internet banking, something Called hour online banking, is an outgrowth of PC banking. Internet banking Uses the Internet as the delivery channel by Which two conduct banking activity, for example, transfer ring funds, paying bills, viewing checking and Savings Account balances, paying Mortgages, Purchasing and financial instruments and certificates of deposit. An Internet banking customer access here or historical accounts from a browser That software runs Internet banking programs resident on the bank’s World Wide Web server, not on the user’s PC. Netbank define a “true Internet bank” as One That provider account balances and something Transactional Capabilities two retail Customers across the World Wide Web. Internet banks are Also known as virtual, cyber, net, interactive, or web banks. To date, more bank garden ESTABLISHED an advertising presence on the Internet, primarily in the form of informational or interactive web sites-Than garden created Transactional web sites. Howeve, a number of Banks That do not yet offering Transactional Internet banking services garden indicated Wed Their web sites That They goodwill offerings Such banking activities in the future. Because Internet banks gene rally garden and lower operational costs’ Transactional Than do traditional brick-and-mortar bank, They are offering two comfortable Often low-cost checking and high-yield Certificates of Deposit. Internet banking is not limited two a physical site, something Internet banks exist ‘without physical branches, for example, Tele Bank (Arlington, Virginia) and Bank net (UK). Further, in something cases, web banks are not restricted two Conducting Transactions Within national borders and the ability two garden makeover Transactions involving large amounts of assets instantaneously. According to industry Analyst, electronic banking provider a Variety of attractive Possibilities for remote account access, Including:

Availability of inquiry and transaction services around the clock;world wide connectivity;Easy access two transaction data, bothering recent and historical, and”Direct customer control of international movement of funds’ without intermediation of Financial Institutions in Customer’s jurisdiction.”

Main Concern in Internet Banking

In a survey conducted by the Online Banking Association, Member Institutions rated security as the Most Important issue of online banking. There is a dual requirement to protect Customers’ privacy and protect Against fraud. Securely Banking: online banking via the World Wide Web providers an overview of Internet commerce and how one company handles secure banking for its financial institution clients and Their Customers. Some basic information on the transmission of Confidential Data is Presented in Security and Encryption on the Web. PC Magazine Online Also offers a primer: How Encryption Works. A multi-layered security architecture comp rising firewalls, filtering routers, encryption and digital certification ensures That your account information is protected from unauthorized access:

Firewalls and filtering routers ensure That the only Legitimate Internet users are allowed two access the system.Encryption techniques remarkably by the bank (including the public key encryption Sophisticated) That Would ensure privacy of data flowing Between the browser and the Infinity system is protected.Digital certification Procedures provider the assurance That you Receive the data is from the Infinity system. Internet Banking SERVICES
Save your hours and effort with CIB Internet Banking

View

Your accounts and your own related onesCredit and Debit CardsFundsTime deposit, Saving certificatesLoansTreasury bondsLatest Transactions of current monthView, print and save your monthly statements (since year 2004) Transfer

Between your accountsThurs Another CIB account (digital signature required)To your credit cardThurs Another CIB credit card (Digital Signature required)Thurs Choose any charity you as a fundraising Request

Check BookThurs change your mailing addressThurs Inquirer or complainThurs add related account (Power of attorney, parent / child or with different customer account number)Thurs manage supplementary cardsThurs dispute credit cardTwo stunningly External transfer (digital signature required)Digital Signature registration Also

Stop your credit cardSubscribe in Alerts service (SMS / E-mail)Download CIB Forms

Automated Teller Machine (ATMs)

The cash machine or Automated Teller Machine (ATM) as it is more formerly non visible is the new wine and new wine Perhaps Revolutionary element of virtual banking revolution. ATM are self service vendor machine That help the bank’s two provider round the clock banking services two Their Customers that convenient places’ without visiting the bank two Premises. They enable the bank’s two more Transact Business by Offering Various services in cost effective way Wed one side and get two more customer satisfaction on the other. Thurs avail the ATM services Customers are provided with ATM card, Which is a small plastic card with magnetic strip, containing information about the name of bank, name of the customer, card number, validity period and signature panel. The magnetic strip contains information about the customer Which enable the two banks verify identity IHE When the card is inserted at the slot Provided in ATM.

The followings wing functions Can ask Performed Wed ATM.

Withdrawal of Cash, Cheques or drafts. The ATM goodwill immediately printout receipt for the sameDeposit of cash, Cheque, or drafts. The ATM goodwill immediately printout receipt for the same.Updated balance of ice appeared and Customer screen and goodwill Also Been printed on a transaction slip.Transfer of money from one account two Another account Can request donations.A customer through ATM Can Obtain Many account statements.A Customer Can ash Cheque book / detail account statement through ATM. These are mailed two customer leaves on the bank employee.A Customer Can Maintain joint account for Which Can he get an Additional card on the name of The Other joint account holder.All the branches of banks are providing with an on-site, on-line ATM. A Customer Can operate historical account any ATM of the bank across India, it is a concept a wherefores any banking.

PC Narayan, president of global trust bank, classifies shared ATM networks Into two kinds viz. “Parent child” and “peer to peer”. A good example of parent child Would ask for a large-size bank. Which ha a lot of ATMs and Which Could it asking two Smaller banks ask for a large two knocking together two build a national ATM network.

ANYWHERE Banking

With expansion of technology, it is Possible new two Obtain financial details from the bank from remote locations. Withdrawal from Other stations garden Been Possible dove two inter-connectivity of ATM station. The Rangarajan committee had sat Also Suggested in the station of ATM that non-branch location, Airports, Hotels, Railway stations, office computers, Remote banking is being extended two Further the customer’s office and home.

CREDIT CARDS / Debit CARDS

The Credit Card holder is empowered two interesting Wherever and Whenever he wants with historical Credit Card Within the limits fixed by historical bank. Credit Card is a post-paid card. Debit Card, On The Other Hand, is a prepaid card with something Stored value. Every hour a person Uses this card, the Internet Banking house gets its money Transferred two from the bank account of the buyer. The buyers account is debited with the exact amount of purchases. An individual is two open an account with the issuing bank Which Gives debit card with a Personal Identification Number (PIN). When he Makes a purchase, he enters historical PIN Wed shops PIN pad. When the card is slurped through the electronic terminal, it Dials the acquiring bank system – Either Master Card or VISA That validate the PIN and Find out from the issuing bank whether two accept or decline the Transactions. The Customer Can never overspend Because the system Rejects any transaction Which Exceed the balance in historical account. The bank never faces a default Because the amount is debited immediately excited from the Customer account.

Inter Bank Transfer is a special service That allows you transfer funds electronically two two accounts in other banks in India through:

v Neft – The acronym “Neft” stands for National Electronic Funds Transfer. Funds are Transferred To The credit account with The Other participating Bank needs something RBI’s Neft service. RBI acts as the service provider and transfers the credit two The Other’s bank account.

v RTGS -The acronym “RTGS” stands for Real Time Gross Settlement. The RTGS system facilitates transfer of funds from accounts in one bank Another two on a “real time” and on “gross settlement” basis. The RTGS system is the FasTest Possible inter-bank money transfer facility available through secure banking channels in India.

Mobile banking (Also known as M-Banking, mbanking, SMS Banking etc.) is a term exceptionally for performing balance checks, account Transactions, payments etc. via a mobile device Such as a mobile phone.

Mobile banking is a way for the customer banking perform two actions here Wed historical or cellphone or mobile device Other. It is a quite popular method of knocking That fits in well with a busy, technologically oriented lifestyle. It Might Also ask Referred two as M-banking or SMS banking. The amount of banking you are comfortable two do Wed. your cellphone vary depending on the banking institution you use. Some banks only offering the option of text alerts, Which are messages sent to your cellphone That alert you two your account activity Wed Such as deposit, withdrawal, and ATM or credit card use. This is the basic type of mashed mobile banking.

Over the years mobile phones holder Become an indispensable accessory for Almost everythings individual. This ever expanding reach of mobile phones holder made a restriction gadget Which Can ask Conveniently unusual for staying connected with the world needs something for internet banking & Other Purposes, receiving SMS alerts, etc. besides of course its basic function, making calls. With the rapid growth in the number of mobile phone subscribers bank garden Been Exploring the feasibility of mobile phones needs something as an alternative channel of payments.

Mobile phone provider a two way Reach out two people in isolated areas and Can help in big way in the financial inclusion. For example in India, more Indians garden mobile phones Than bank accounts. Mobile Payments Can pray defined as information exchange Between a bank and its financial Custom Transactions through the use of mobile phones. Mobile payment involve debit / credit two a customer’s account’s on the basis of funds transfer instruction Thank over the mobile phones.

Mobile payments services rally gene involved in the matter the collaboration of banks, mobile payments service providers and mobile network Operators (MNOs). The service Can Also ask Provided as a proximity payment system, the wherefores Transactions are independent of the MNOs. Payment for goods and services via mobile, Offered by Many companies, use contact less payment over mobile phones two pay for on-and off-street parking in Specially, fascinating areas. First conceptualized in the 1990s, the technology ha seen commercial use in this century in bothering Scandinavia and Estonia. End users benefit from the convenience of being comfortable two pay for parking from the comfort of Their car with Their mobile phone, and parking opera Thurs are not obliged two invested in Either existing or new street-based parking infrastructures.

32 bank garden Been approval two cards are dealt provider mobile banking facility in the country by the Reserve Bank of India. 21 bank started providing garden These services. Mobile banking is a secure application, Which takes care of end-to-end encryption of data in transit two victims banking information and Transactions. Banks are now permitted two offering this service two Their Customers subject two a daily cap of Rs.50, 000 / – per customer for funds transfer and bothering Transactions involving purchase of goods / services. Transactions up to Rs.1, 000 / – Can ask facilitated by bank Without end-to-end encryption. The risk Aspects Involved in Such Transactions are addressed by the bank through Measures Adequate security.

Away from home, bills paid or ask Can money late in the two loved ones or balance enquiries done anytime 24×7! That is What State Bank Freedom offers, convenience, simple, secure, anytime and anywhere banking.

Mobile Banking Services of Application / Wireless Application Protocol (WAP)

The service is available Wed java enabled mobile phones over SMS / GPRS Where the user is required two download the application on to the mobile handset. The service Can Also ask availed via WAP Wed bothering java and non java phones with GPRS connection.

The followings wing functionalities are available in the application-based services / WAP:

• Funds Transfer (Within and outside the banking needs something Neft)

• Enquiry services (Balance inquiry / Mini statement), Cheque book request

• Demat Services Enquiry ((Portfolio value, Request for the DIS booklet, Value of holdings, statement of charges, Transaction status, etc.)

• Bill Payment (Utility bills, credit cards, Insurance premium payments) Donations, Subscriptions.

• M Commerce (Mobile Top Up, Top up of Tatasky, BigTV, SunDirect, DishTV connections and Receive recharge pins for DigitalTV / Videocon D2H, Merchant payment, SBI life insurance premium).

Business Rules Governing the Mobile Banking Services Application / WAP.

The Mobile Banking Service Will Be available two all the Customer Having Current / Savings Bank Account (Personal segment). The Customer goodwill may have to register for the services.Daily transaction limits for fund transfer / bill / merchant payment is Rs.50, 000 / – per customer with an overall calendar month limit of Rs.2, 50,000.00The service request goodwill carrier Agnostic i.e. all Customers Can avail the mobile banking service with the bank irrespective of the service provider for Their mobiles.The service is free of charge. Howeve, the cost of SMS / GPRS connectivity goodwill may have to ask borne by the customer. Mobile Banking Services of USSD (Unstructured Supplementary Service Data)

Mobile Banking Service is now available Wed non java mobiles Without GPRS connection Alsos.The service is Currently available with Aircel, Idea, MTNL (Delhi) Vodafone and DoCoMo Tata connections.The service is session based and requires a response from the user within a reasonable hour.The Daily Transaction limit is Rs1000 / – per customer with an overall calendar monthly limit of Rs5000 / -.

The followings wing functionalities are available in USSD based service:

Funds Transfer (Within the bank) Enquiry services (Balance inquiry / Mini statement) Mobile Top-up. Gift Cheques

Need to give a married But I do not know What Would ask Appreciated by the receiver? Purchase Our attractive Gift Cheques available that all Our branches in DENOMINATION of Rs 101 / -, 201 / -, 501 / – and 1001 / -. Gift Cheques do not attract any charges and come with an attractive free envelope.Encashable that couples that all SBI branches, with no identification Requirements. No Time Limit for encashment. Purchases Can request made in bulk.

Information Technology ha Played a vital role in the Advancement of banking system. The reach of Indian banking two everythings individual is Possible Because of the computerization process adopted by banking sector. Information Technology ha not only simplified the operation But it ha Also standing achieved a great comfort an individual WHO does not Have a good knowledge of IT But I need to access banking in an optimum manner.

Can ask conclude That introduction of more IT goodwill alone not sufficient to ask two generating Necessary performance improvement and get the Competitive Edge But intelligent people are required two use Such predictive tools. They eventhough IT management is a challenge flow in future banking scenario, the marketing mix technology is going to ask the two challenge.

REFFRENCES

Books and Journals:

1) Asdas & Barosen, “Banking sector Reforms-Towards new face of Indian Banking. The Management Accountant. ICW AI WAY 2001.

2) Sugan C. Jain, “E-Banking”, 2006.

3) Abhay Jain and BS Hundal, “Barriers in Mobile Banking adoption in India”, Aug-2006, Vol.v, No.3, p: 8

4) Premkumar.NB and Esther Gnanapoo.J “E-Banking the essential need of today” Kisan World, March 2008, Vol.35, No.3, PP :17-19.

5) V. Vasudevan, “Theory of Banking”, S. Chand & Company Ltd., Delhi, Nov -1986 P.43.

6) “A study of the Trends and issues in implementation of E-Banking,” Dr.Meena Mathur, Zakiya Khan.

Websites

1) http://www.banknetindia.com

2) http://www.rbi.co.in

3) http://www.indianbankassociation.org

4) http://www.polaris.co.in

5) tech quest 2003

6) IBA-Indian year book 2001

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