Gone are the days when we used to rush to Banks for Cash Withdrawal, Balance Inquiry etc, Online Banking has given a new dimension to Banking. With the emergence of Online Banking or E-Banking, Banking Services today have become hassle-free, quick and paperless. First of all, let us discuss what Online Banking is? A customer is provided with a unique Login id and password for accessing personalized internet Banking. Considering its advantages Banks have made it free for Customers. Most Of the Banks just charge for Fund transfer and not for entire array of Services.
What E – Banking / Online Banking Offers
Online Banking offers a wide array of Services such as-
1. Accessing account balances & transactions.
2. Downloading statements.
3. Ordering Cheque books, Stop- Payment.
4. Requesting preparation of Online Fixed Deposits and Recurring Deposits .
5. Fund transfer to specified Bank Account.
6. Bill Payment example- Mobile Bill Payment.
7. Online Mobile Recharge.
8. Requesting hotlisting / blocking of ATM Card.
9. Loan & insurance premium payment.
10. Utility Bill Payment.
As we can see how useful Online Banking is, the decisive question is whether its Good or Bad.
(checkout our post on Difference Between Private & Public Banks – Interview Question )
How is Online Banking is Beneficial – Customers and Banks View
Customer Advantages
• Internet Banking is good as it offers a variety of services at just click of Mouse.
• It is fast, convenient from the point of view of Customers.
• Customers don’t have to visit a Branch for a small issue because of the variety of Services available through E-Banking, Customers are much more satisfied & thus Banks are benefited from business point of view too.
Bank Advantages
• For Banks also it is useful as transactions are paperless and quickly executed.
• Branches are not crowded like they used to be at the time of Traditional Banking which has developed better working culture.
• Efficiency, with reference to time & error-reduction has improved.
• Cost Saving – deposition & withdrawal the stationary (in form of slips/vouchers) is saved, reduces manpower cost, error free, thus indirectly Online Banking is cost effective.
Thus ,this form of Banking is win-win situation for both customers and Banks.
(checkout our post on Difference Between FD and RD – Interview Question)
Risks / Limitations involved with Online Banking
1. As customers don’t have to go to Branch for accessing to any particular services, if fails to build the relationship between a Customer and Banker.
2. Online Banking is not that user -friendly as it becomes difficult for a Common Man to execute complex transactions. Also, unlike Bankers it becomes difficult for a customer to check authenticity of IFSC and MICR code.
3. The biggest drawback is security issue involved. Although various Banks have their own security based software,none of them can guarantee cent percent Safety.
We can conclude that Online Banking is door-step Banking which is one of the greatest revolution still if suffers from few disadvantages, which can be eliminated if we follow all the instructions & safety measures like closing the browser after doing Online Banking & not sharing Login & password with others. Our safety lies in our hands.