Internet banking is taking the world by storm. It has made our lives a lot more easy and comfortable. No more have we to depend on banks or make frequent visits to them. Standing in queues for hours altogether for withdrawing or sending money has now become a thing of the past. With internet banking, you can shop online or send money to anyone, all by sitting in the comforts and security of your home. It has kind of brought a revolution in banking and people are enjoying its numerous advantages. In case you are yet to experience the joys of internet banking, it is highly suggested that you approach your bank at the earliest and apply for the same. Internet banking, if we follow the safety guidelines, can be most profitable to us and also saves on a considerable amount of our valuable time that is generally lost visiting banks, reservation offices, ticket counters and standing in queues.
For the benefit of those who are not much aware of this form of banking, we will first begin with understanding what is meant by internet banking. Subsequently, we will also come to understand how it can be beneficial to us. Like every modern technological aid, internet banking too comes with its flaws. We will see them too. To make our internet banking experience secure and confidential we will also see the safety measures that we need to take care of.
What is meant by internet banking?
Internet banking is known by various terms. Some prefer to call it as net banking and some as online banking, e-banking or virtual banking. Whatever be the name it all means the same. As is apparent from its name, an internet connection is what is required to do a transaction with this kind of banking. For carrying out a transaction, you can use any of the devices such as a laptop, desktop, tablet or a mobile phone. One thing you need to ensure, you should have a fast and reliable internet connection. You can avail of internet facilities from any of the internet service providers (ISP) such as BSNL, Airtel, Idea, Vodafone, Reliance and many more. In case you are using a mobile or tablet you can even download the relevant app meant for internet banking.South Indian bank is one of the bank in India with highly secured and flexible Internet banking.
Other than the device and an internet connection, what you require is authorization from your bank for proceeding with internet banking. Asking your bank to authorize you is a very easy procedure. In case your savings account hasn't come with an internet banking provision, all that you need to do is fill a relevant form giving your savings account details and hand it over to your bank. On receipt of the form and necessary verification of your account details, the bank will almost immediately allot you with an id and password for internet banking. However, some of the banks might ask you to write an additional application to the bank manager for providing you with the facilities of internet banking. In that case you can write a hand written application in a plain white paper and submit the same to the bank manager or the concerned clerk. For getting help in writing an application to the bank requesting for net banking facilities, you can go through this article on application format for internet banking.
Once you have obtained the necessary id and password, you are now ready to experience the advantages that internet banking provides to you by bringing banking services at your doorsteps. I will now enumerate some of the many advantages that can be derived from online banking. They are as follows.
Advantages of net banking
A few demerits
Sure, like most other things, internet banking has a negative side to it. They are mostly security issues. One has to be very careful while doing any kind of online financial transaction. Some of the points you should take care of while doing financial transactions on the net are:
A quick wrap up
So it is very clear to us that internet banking has numerous advantages. It has changed how we bank, shop and pay our bills. But one has to be very careful while using net banking for any kind of financial transactions. One should remember that banks never ask us for our login id or password. They will never ask us for any test transfer either. In case you receive such mails or promos that ask for your bank details or ask you to send money, never ever respond to them. Delete such mails and messages and if possible inform your bank about such things. Keep in mind that a safe and secured approach will lead you to a happy and profitable experience in internet banking. I will request readers to share their experiences, if any, of internet banking, both positive and negative. It will be then of great help in educating one and all about internet banking.
Dhruv is an electrical engineer by profession. Apart from liking his job, he has a special love for writing and has often dabbled in writing scripts for skits and short plays. As a Content Developer at ISC, Dhruv is having a whale of a time, showcasing his writing skills.
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There are other benefits associated with internet banking like account management features which enables the account holder to view transaction history, view current balance, view past statements etc. Also, internet banking enables tax management e.g. online tax payment, view TDS forms, tax e-filing etc. Yet another feature associated with the internet banking is investment through Demat accounts etc.
Nice article written by the author. In this modernization and busy schedule for every one who ever using Internet should aware about Internet banking. As Many people afraid to and not aware about this service, so banks should arrange awarness programme to educate more and more customers.
As author has said you can transfer money to anyone. Just add a payee (with some details like customer name, account number, IFSC code) and you can transfer through NEFT, RTGS, IMPS. As IMPS is the instant transfer method, so you can transfer money to your friend or relatives, or employees any time (24x7, 365 days). You can request for fixed deposits, recurring deposits, can apply for a loan through internet abnking, can update your mobile number, communication address, can download your statement etc. Also you can do lots of online transactions through Internet banking as mentioned by the author.
The additional benefit is by using internet banking you not only save your time and money but also you get reward points from banks which can be converted after certain level as cash or gifts. Also you save lots of paper work, stationary items of banks.
But before you start internet banking, kindly get proper knowledge of all functions and features from authorized bank person only.
I have three bank accounts, but thanks to internet banking facilities, I have not visited two of these banks for more than two years! For me, internet banking is a blessing and it saves lots of time, energy as well as money, because I can save the transportation cost for to and fro journey to the banks located at faraway places from my present residence and present office. I enjoy all the nine facilities mentioned by Mr. Dhruv, the author, from the comfort of my residence and from my office anytime of the day.
Mr. Dhruv has also mentioned seven demerits of internet banking. In this connection, I am mentioning another demerit of internet banking. In case of sudden power-cut during transaction, I have faced lot of problem in retrieving the money involved in the transaction. Every person who has experience in internet banking, has faced this particular problem several times.
Concluding my response, I would like to thank Mr. Dhruv, the author, for this useful article.
Thanks Kailash, Swagatika and Partha for adding more value to this article about internet banking. The additional information given by you will definitely aid our readers in getting a better grasp of the subject. As mentioned by Mr Kailash there are lots of possibilities with internet banking. Perhaps one day I will be able to update this article with internet banking features such as tax management, e-filling of tax, viewing forms associated with tax deducted at source and many more. And yes Mr Partha, interruptions in power and internet connections is a common problem which we all have experienced, one or the other time. With improved infrastructure I hope we will be one day able to overcome such issues. After all, internet banking is here to stay for the long term.
Through this post the author created greater awareness to the general public who can go for internet banking and the precautions to be taken while transacting. What I presume is that those who are elders and having bank account won't believe in internet banking and they would get satisfied only when they visit the bank and get the things done in front of their eyes. For example if a FD has to be renewed, there is no provision for the bank to do so through internet banking as the account holder must bring the FD receipt and he must personally sign the same either for renewal or for closing the FD. So in some cases visiting bank is compulsory and we cannot fully depend on internet banking for every need. Moreover those who have much time in their life, they would like to toil and not sit and get the work done.
It is now almost two years since this article was posted. Naturally, the dimensions and ground realities have changed. Internet banking is now an essential and integrated part of our life. Now there is no escape from it and it is here to stay until something better replaces it entirely.
Just as it is becoming more and more used, it is also facing more and more threats and attacks from criminals.
So now the discussion focus is not on pros and cons, but how to safeguard the online or internet banking. While all the possible and prudent precautions and measures are taken by the banks, the network providers and the users also have to be prudent, alert, aware and vigilant in this regard. Internet banking users should treat their transactions with the same prudence and precaution as if they are dealing in cash in public.
If we use the internet banking carefully with proper precaution and vigilance, then this is very easy and convenient. That is why some banks advertise it as ‘the bank branch in your home’. After the popularity of internet banking via mobile phones the same has been changed to ‘bank in your pocket’. So we should take due care of them.