A Study on Services Covered under E-Banking

The main idea behind electronic banking, often known as online banking, is to make banking processes easier and more straightforward by eliminating the need for paperwork, visits to physical locations, and automated teller machines (ATMs). Online banking allows customers to conduct financial transactions, pay bills, create new accounts, and perform other financial tasks from the comfort of their own homes or on the road. E-banking may offer a variety of services to its consumers. There are two types of electronic banking services: mobile banking and electronic business banking.

Advantages of E-Banking

• Banks have lower operational costs per unit service.

• Customers benefit from it since they are not obliged to visit the bank’s facilities.

• There is an extremely low rate of error.

• The consumer can receive money from ATM machines at any time.

• Customers can earn discounts from retail locations by using credit cards and debit cards.

• The consumer may effortlessly transfer funds online from one location to another.

Services Covered under E-Banking

Paperless/cashless transactions are encouraged by e-banking. It also comes with a set of rights, obligations, and costs. E-banking services include the following:

1. Credit Card

A credit card is a little plastic card supplied to consumers as a payment method. It entitles its holder to purchase goods and services in exchange for the bearer’s agreement to pay for them. The card’s issuer opens a revolving account and offers the consumer (or the user) a line of credit from which the user can take funds for payment to a business or as a balance transfer to the user. A credit card differs from a charge card in that the amount on a charge card must be paid in full each month. On the other hand, credit cards allow users to carry a balance of debt that is subject to interest charges. A credit card is also distinct from a cash card that may be used as currency by the card’s owner. Banks and credit unions issue the majority of credit cards.

2. Debit Card

 A debit card is a plastic card that gives the cardholder electronic access to their bank account(s) at a financial institution. Some cards include a stored value against which a payment is made. However, most send a message to the cardholder’s bank to withdraw cash from a specified account favoring the payee’s designated bank account. When making purchases, the card can be used as an alternative to cash. In certain circumstances, the cards are only intended for usage on the Internet; therefore, there is no actual card. However, unlike credit cards, cash paid with a debit card is transferred directly from the bearer’s bank account, rather than letting the holder repay the money afterwards.

3. EFT

ETF stands for Electronic Transfer of Funds.This is a deduction or credit to a customer’s account. Bank users can use credit or debit cards to purchase products and services without having to carry cash. The bankers issue the cards to the customers. This system is powered by a single pin.

To complete the transactions, the Customer swipes the card using the card reader device. Customers were able to use their services more effectively as digital transactions and internet banking evolved.

4. ATM

An ATM is a computerized telecommunication device that allows clients to conduct financial transactions in public locations without human intervention. It allows users to undertake a variety of banking activities such as cash withdrawals, mini-statement requests, etc. The following are the benefits of ATMs: 

• ATMs give service 24 hours a day, seven days a week. The consumer can withdraw cash up to a specified amount on any day or night.

• ATMs make banking customers’ lives easier: ATMs make banking customers’ lives easier. ATMs are now positioned in convenient locations such as airports, train stations, and so on, rather than necessary on the bank’s premises.

• ATMs may issue new currency notes to clients: ATMs may issue new currency notes to customers. Customers, in other words, do not receive filthy notes from ATMs.

• ATMs give secrecy in money transfers: Most importantly, ATMs ensure privacy in the customer’s financial transactions.

5. Mobile Banking

It is another essential service that banks have recently supplied. Customers may use it by using their cell phones. To allow a consumer to use this service, the bank will install certain software and offer a password.

6. Banking at Home

Another significant breakthrough occurred in the Indian financial sector. Customers may do various transactions from the comfort of their own homes or workplace. They may use a telephone to check the balance and transfer funds. However, it is not widely used in our nation.

Conclusion

In brief, E-banking refers to any banking transaction conducted electronically. It is a safe, quick, and eazy e-banking facility that allows its users to conduct online banking services at any time of day and from any location via the internet, which formerly required consumers to visit banks.