Advantages of E-Banking

What is E-Banking?

E-banking caters to a banking service that is provided using the internet and electronic mediums.  This service helps customers to have anytime access to their respective bank accounts. This also means that a customer can carry out his or her financial transactions without concerning about any location or time barrier. 

This service in the financial sector has aided many people to explore and avail a plethora of facilities provided by traditional banks. The customer can enjoy both financial & non-financial services using one medium. E-banking has helped the banking sector evolve completely.

Advantages of e-banking in India

• Easy transfer of money

In case of urgency, no need to visit the branch for immediate money transfers as you have anytime access to your E-banking account. You don’t have to worry about maintaining a CHEQUE book either. It also aids in better management of monetary needs.

• Online Bill Payment

This is a whole and sole benefit of E-banking. One has to just login into the account and pay bills using payment gateways. 

• 24*7 facility

The response of E-banking is very pro-active therefore many consumers can actually rely on this medium for last-minute transfer of funds without actually visiting the branch in person. A consumer doesn’t have to depend on a bank’s schedule.

• Secure banking

A designated software is created to carry out all the functions with utmost security. Hence, transactions are carried out in the best security conditions as customers have their very own username and password.

• Alarm alert

In a situation, where you suspect any kind of fraud or threat activity related to your bank account. You can immediately freeze the account using E-banking to prevent any further major vandalism.

• Investment plan

E-banking provides easy knowledge and guidance to a bank’s more loans and investments options. 

• Quality service

E-banking day by day is providing convenient service to their consumers to carry out their transactions. 

• Low-cost banking

E-banking doesn’t charge you any operation cost yet provides you with the best quality of services. It provides proper convenience with lower rates. Hence, the minimal charges make it reasonable and efficient. 

What are the objectives of E-banking?

From the bank’s perspective: –

The main objective is to extend their set of services. It can also lead to a reduction in administrative costs. The major aim is to deliver retail services and cost reduction through banking networks. 

From the client’s perspective: –

The main goal is to reduce time and cost in daily transactions. The client holds complete authority and accountability for his account. It helps the client to acquire and process the information in no time.

Types of E-banking in India

Automated Teller Machines (ATM)

Automated Teller Machines or ATM has completely proven to be a boon for the banking sector in India. It helped to discard the need to maintain a long queue and many other formalities in routine banking practises. It has widely contributed to changing the office environments of the bank branches. The customer no longer has to visit their respective bank’s branch for withdrawal of money, deposits of cash, balance inquiry, cheque dropping, etc. Automated Teller Machines are basically the machines where the customer carries out the operations to withdraw or deposit cash. 

National Electronic Fund Transfer (NEFT)

National Electronic Fund Transfer or NEFT refers to nation-wide payment which caters to the one-to-one transfer of money. Any individual, firm or company can electronically transfer funds from a bank account to another within the country using NEFT. Also, walk-in customers who do not hold any bank account cash deposit cash up to Rs. 50000 per transaction at a time. NEFT facilitates the customer to perform the transfer of funds without actually having a bank account. 

Real-Time Gross Settlement (RTGS)

RTGS can be termed as quick settlement of funds transferred individually on an order by order basis. RTGS is usually conducted for transactions for a higher value. The minimum amount of money value shouldn’t be less than RS. 2 lakh. Although, there isn’t any upper limit for carrying out the transaction. 

Immediate Payment Services (IMPS)

The Immediate Payment Services or IMPS is a crucial factor in internet banking which offers all-day interbank electronic fund transfer with the help of cell phones. It is a safe tool to be used to transfer instant money through banks across India.

Conclusion

The idea of E-banking has no wonder completely transformed the hectic banking process. It has made the transition from manual to an electric one. It has effectively contributed to the speedy, smooth, easy and comfortable functioning of the transactions. Yet, new applications have been discovered to make it better in the coming years.