The Most Important Thing About Internet Banking
Internet banking, sometimes referred to as online banking, e-banking, or Net Banking, is a service provided by banks and financial institutions that allows users to access their accounts via the internet. Customers do not need to go to their bank’s branch office for every modest service. Internet banking is not available to all account holders.
Clients must first register for their bank’s online banking service in order to use the service. A computer or other device, an Internet connection, and a bank or debit card are all required for online banking. They must generate a password in order to register. After that, consumers can utilize the service for all of their banking needs.
The types of online banking transactions available differ by institution. Basic banking services, including as transfers and bill payments, are commonly available at most institutions. Customers can use online banking portals to open new accounts and apply for credit cards at some institutions. Ordering checks, setting stop payments on checks, and reporting a change of address are examples of other functions.
Checks can now be deposited electronically via a mobile app. To complete the deposit, the consumer just enters the amount and takes a snapshot of the front and back of the check.
Internet banking has been around for a while now and it is something we all use. Earlier most account holders would send money by using Internet Banking, but now with the proliferation of mobile wallets and UPI payment systems, internet banking is definitely facing stiff competition.
Online Banking Features:
Check your account statement on the internet.
Open a savings account with a fixed deposit.
Pay your utility bills, such as your water and power bills.
Make payments to merchants.
Make a money transfer.
Place an order for a checkbook.
Invest in general insurance.
Recharge your prepaid phone or DVR.
Internet Banking’s Benefits:
The following are some of the benefits of online banking:
Availability: Banking services are available 24 hours a day, 365 days a year. The majority of the services are not time-limited; you can check your account balance and transfer funds at any time without having to wait for the bank to open.
Simple to Use: Using the services provided by internet banking is simple and straightforward. Many people find that transacting online is much more convenient than going to a branch.
Convenience: You won’t have to abandon your responsibilities to line at the bank. You can carry out your transactions from any location. Online banking can be used to pay utility bills, recurring deposit account payments, and other bills.
Time-saving: With internet banking, you may finish any transaction in a matter of minutes. Net banking allows you to transfer money to any account in the country or open a fixed deposit account in a matter of minutes.
Activity Tracking: You will receive an acknowledgement receipt when you make a transaction at a bank branch. There’s a chance you’ll misplace it. All transactions you make on a bank’s internet banking interface, on the other hand, will be logged. If necessary, you can use this as proof of the transaction. The name of the payee, the bank account number, the amount paid, the date and time of payment, and any remarks will all be recorded.
Internet/Online Banking Disadvantages
The following are some of the drawbacks of online banking:
Internet Requirement: To use internet banking services, you must have an uninterrupted internet connection. If you don’t have access to the internet, you won’t be able to use any of the online services. Similarly, if the bank’s servers are unavailable due to technical difficulties, you would be unable to use net banking services.
Vulnerable to Hackers: Online banking transactions are still vulnerable to hackers, no matter how many steps institutions take to ensure a secure network. There have been instances where transaction data has been compromised, despite the strong encryption mechanisms employed to keep user data safe. This could pose a serious hazard, such as the hacker illegally using the data for his or her own gain.
Difficult for Novices: There are people in India who have lived their entire lives away from the internet. Understanding how internet banking works may appear to be a completely new experience for them. if they have no one to explain how internet banking works and how to go about it. For novice beginners, figuring things out on their own will be quite challenging.
Password Security: In order to use the services, each internet banking account requires a password to be typed. As a result, the password is critical to ensuring integrity. If the password is leaked to others, they may be able to use it to commit fraud. Furthermore, the chosen password must adhere to the bank’s standards. Individuals must update their passwords on a regular basis to avoid password theft, which might be difficult for the account holder to remember.
However, do you know that there are so many things that you can do with internet banking other than simply transferring money?
Well, yes. Internet banking lets you do a lot of other stuff, apart from banking. Here’s a look:
Open deposit accounts
Banks let you open deposits from your net banking account without having to visit the branch. You can open a fixed deposit, a recurring deposit or a tax–saving deposit account. The process is pretty simple. You need to enter details like the starting date, tenure, how you want to receive your interest and other details and you can open a recurring deposit account online. You can also check the interest rates before opening an account. You do not need to submit KYC documents because the bank already has them.
You can use an app to apply for different loans through your net banking account. This could be personal loans, gold loans, car loans, two wheeler loans, home loans or even loans against FDs or mutual funds. Since you are a customer with the bank there are several benefits. The bank already has your documents and other details. You can check your loan eligibility very quickly by entering a few basic details.
Many banks also let you view pre-approved loan offers through the app. Once you know your loan eligibility, you can apply for the loan through the app and also get in principal approval in a matter of minutes. Once you apply for a loan a bank executive will get on touch with you to process the loan. Certain loans like personal loans can also be approved and disbursed in a few hours, since the KYC is already done.
If you have an investment or a demat account with the bank, you can also directly invest in shares and mutual funds from your app. When investing in shares, the app will redirect you to your demat account. Many banks offer 3-1 demat accounts which includes savings, trading and an investing account, all in one. So, you can directly invest by using money from your account and get the redemption proceeds to your account.
However, when investing in mutual funds through a bank app check if the app is selling you funds from a certain fund house or gives you the option to choose your fund house. If the bank has a tie-up with a fund house and offers you funds from only that AMC, it may not be a good idea to invest in mutual funds through an app.
Manage your cards
You can also manage your credit and debit cards from your app. If you lose or misplace your debit or credit card, you can use the app to block it instantly. If your credit card is of the same bank and registered, you can check your credit card bill and make bill payments directly from your bank account. You can also check offers you are eligible for and upgrade your credit card.
Mobile apps also let you apply for a cheque book or stop a cheque payment from your app. Used smartly, the bank app sitting on your smartphone is a convenient thing to use.