Internet Banking

What is Internet Banking?

Internet banking, also known as net banking, virtual banking, web banking, online banking or home banking, is a type of banking system that enables bank customers to perform various financial transactions through their respective websites and mobile applications.

Internet banking has been the most common way to access bank accounts conveniently since 2000.

Types of Internet Banking Facilities in India

There are mainly 3 types of internet banking facilities available in India. Based on the banking nature below is the list.

Informational Internet Banking

This basic type of online baking or e-banking facility provides all general information about the bank through its website and mobile application. On the Bank’s website, you will find the details about accounts, loans and deposits available for bank customers.

You will also find the features of banking services and products, benefits, eligibility criteria, and how to apply for the services.

Banks also provide information about their ATM and branch locations under this e-banking facility. If you need further information about any bank scheme you can reach them via email.

Communicative Online Banking

This is another kind of e-banking or online banking where customers and banks exchange information via a virtual chatbot.

Compared to the basic ‘Informational Internet Banking’ customers do not need to wait for a response from the bank, the information exchange is instant. 

Customers can ask about minimum balance, different types of fund transfer facilities and how to apply for services like loans, and credit cards, they get all the relevant answers from Chatbaot instantly.

Chatboat also gives responses about the interest rate on loans and other baking charges. If there is a complex query from the customer chatbot leads the customer to the bank’s customer care department.

Transactional Internet Banking

Transactional Internet banking is the advanced level of e-banking system where customers have the rights to perform different types of banking transactions like transferring funds, requesting updated account details, Utility bill payments, credit card bill payments, creating deposits, EMI payments and investment in securities through bank’s respective internet banking portal.

Customers are given valid login IDs and passwords to perform these types of transactions securely.

With the help of Transactional internet banking, you can transfer funds in the following facilities.

• NEFT (National Electronic Fund Transfer)
• RTGS (Real Time Gross Settlement)
• IMPS (Immediate payment services)
• UPI (Unified Payments Interface)

Features of Online Banking

Below are the features of Internet banking or online banking that Indian Bank offers.

#1. Online account statement #2. Create Deposit Online #3. Utility Bill Payments #4. Merchant payments #5. Request for Cheque book online #6. Buy Insurance Products online #7. Prepaid mobile/DTH recharge, and many more

Advantages of Internet Banking

Easy to Operate	It is much easier to perform banking transactions using Internet banking than visit a bank branch
Availability	Banking services are available 24/7 and you can perform different types of banking transactions using the bank’s secure banking environment
Convenience	Internet banking is very convenient, you do not need to visit any branch, and you can perform banking transactions from the comfort of your home with internet and bank secure access
Time Efficient	Online banking offers the facility to execute the transaction within a few minutes so this is time time-efficient
Activity Tracking	While using online/internet banking your transactions are being recorded in the bank’s secure environment. You do not have fear of losing a payment receipt
Fund Transfers	Indian banks offer the facility to transfer funds within your accounts and the beneficiary’s bank’s accounts through transactional Internet banking

Disadvantages of Internet/Online Banking

Need Internet	To use banking services using online banking you need to have a good internet facility
Security Issues	There are security risks involved in online banking such as vulnerability to hacking, identity theft and personal data security
Hard for Beginners	Some people in India with little to no knowledge about the Internet and online banking may find little difficult to learn and use online banking facilities
Password Security	Online banking or internet banking is performed using a login ID and password so in case the password is revealed to someone then security to online banking is in problem.
Customer Service Challenges	In this case, submitting a cheque to the bank is not possible through Internet banking. Also, If individuals want to discuss their financial problems with someone face to face that is also not possible online.

What Do You Need for Online Banking?

Nowadays, it is very common to use intent banking in India. If you want to avail of this facility you need an internet connection and electronic devices like mobile, tablet or computer.

You can set up your account online with the help of your debit card number and mobile number connected to the bank through the bank website or mobile application.

To open a bank account and verify & activate your Internet banking you may require some of the below information.

1. Your Complete Name
2. Date of Birth as per bank record
3. Address and other information
4. Identity card with photo issued by Government
5. Fund your account with the available process

How Can You Safely Use Online Banking?

It is very easy and convenient to use online banking or internet banking but this comes with some security issues. You need to be aware to be safe online while using internet banking. Consider the following safety precautions to be safe.

1. A strong password is necessary (use a number, character and special character to create a password such as S$4No@A12P) Change the password regularly
2. You can use a password manager to generate and store your password safely
3. Always use 2-factor authentication wherever possible
4. Never, share your online banking credentials with anyone
5. Do not use Internet banking on public Wi-Fi
6. Be careful for any doubtful activity in your account
7. Report to the bank immediately in case of doubtful activity