53153240 Internet Banking

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InternetInternetBanBankingking


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What is Internet banking?What is Internet banking?

A system allowing individuals to perform banking

activities at home, via the internet.

The automated delivery of new and traditional banking

products and services directly to customers through

electronic, interactive communication channels.

Some online banks are traditional banks which also

offer online banking, while others are online only and

have no physical presence.


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Development of E-bankingDevelopment of E-bankingThe concept of Internet banking has been simultaneously

evolving with the development of the world wide web.

Programmers working on banking data bases came up with

ideas for online banking transactions, some time during the

1!"#s.

The online shopping promoted the use of credit cards

through Internet.

The first online banking service in $nited States was

introduced, in %ctober 1&.


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Development of E-bankingDevelopment of E-banking

ContdContd

The service was developed by Stanford 'ederal (redit

$nion, which is a financial institution.

In )ay 1* + ells 'argo - the first bank in the world to

offer customer access to their accounts over the

internetallows customer to see their accounts online/

The online banking services are becoming more and more

prevalent due to the well developed systems


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Development of E-bankingDevelopment of E-banking

in Indiain IndiaI(I(I was the first bank to initiate the Internetbanking revolution in India as early as 10

under the brand name #Infinity.

I(I(I 2ank kicked off online banking way

back in 13 . 2ut even for the Internet as a

whole, 13 to 1! marked the adoption

phase, while usage increased only in 1-due to lower ISP online charges, increased

P( penetration and a tech-friendly

atmosphere


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RBI & E-BankingRBI & E-Banking

The 4eserve 2ank of India constituted a

working group on Internet 2anking.

The group divided the internet bankingproducts in India into 5 types based on the

levels of access granted.

They are+- i/ Information %nly System+ ii/

6lectronic Information Transfer System+ iii/

'ully 6lectronic Transactional System+


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Information Onl !stemInformation Onl !stem7eneral purpose information like

interest rates, branch location, bank

products and their features, loan and

deposit calculations are provided in the

banks website.

There e8ist facilities for downloading

various types of application forms.

The communication is normally done

through e-mail.


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Contd""Contd""

There is no interaction

between the customer and

bank#s application system.

9o identification of the

customer is done. In this

system, there is no possibility

of any unauthori:ed person

getting into production systems

of the bank through internet.


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Ele#troni# InformationEle#troni# Information

$ransfer !stem$ransfer !stemThe system provides customer- specific

information in the form of account balances,

transaction details, and statement of accounts.

The information is still largely of the #read only#format. Identification and authentication of the

customer is through password.

The information is fetched from the bank#s

application system either in batch mode or off-

line.

The application systems cannot directly access

through the internet.


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%ll Ele#troni# $ransa#tional%ll Ele#troni# $ransa#tional

!stem!stemThis system allows bi-directional capabilities.Transactions can be submitted by the customer for online

update.

This system re;uires high degree of security and control. In

this environment, web server and application systems are

linked over secure infrastructure.

It comprises technology covering computeri:ation,

networking and security, inter-bank payment gateway and legal

infrastructure .


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'tomated $eller (a#hine'tomated $eller (a#hine

)'$(*)'$(*AT) is designed to perform the most

important function of bank.

It is operated by plastic card with its

special features.

The plastic card is replacing che;ue,personal attendance of the customer,

banking hours restrictions and paper

based verification


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Different servi#es providedDifferent servi#es provided

nder e-bankingnder e-banking%9


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Service ProvidedService ProvidedSelf-account funds transfer across India.

Third party transfers in the same branch

New account opening

New Cheque-book request

Railway tickets booking

tility bill payments

!IC and other insurance premium payments

Credit card dues payments

"eposit your ta#es

"onations to Red Cross and such other or anisations


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Advantages of E-bankingAdvantages of E-banking

2enefits for 2anks

2enefits for Small to )edium

2usinesses

2enefits for (ustomers


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B


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Benefits for Small to MediumBenefits for Small to Medium

BusinessesBusinessesTo run its operations more

effectively


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Benefits for CustomersBenefits for Customers

(onvenience B& hours a day, seven days a week

(ost 4educing transfer fees

Speed 'aster circulation of assets

(ompetitiveness - 'ostering competition in financial

market

(ommunicate easily

Abolishing the uses of paper

%ffering one-stop-shop solutions


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Disadvantages OF E-bankingDisadvantages OF E-banking

A need for customer skill to deal with computers and

browsers.

)any people who are not comfortable with computers and

the Internet, often find it difficult to use internet banking

'or beginners, internet banking is really time consumingIn many instances, a simple mistake, like clicking a wrong

button, may create a big problem.


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Security iskSecurity isk

Increasing number of fraudulent bank websites

'or 6g. A suspicious bank

website+www.sbionline.com %riginal bank

websitewww.onlinesbi.com

'ake emails purporting to be sent from banks

6mail send from 'raudulent bank

erify the personal information

7uide customer enter the fraud link

@isclosing their AT) card numbers and their passwords


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+erse#tions %or Bank+erse#tions %or Bank

Should provide specific guidance to their

customers

Should take the ade;uate measures to

ward off any problems related to the

security of internet banking

%nline banking tutorials should be

provided to help familiari:e people with

internet banking


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+erse#tions+erse#tions%or Cstomers%or Cstomers

Should not disclose their customer I"s

$e.g.% account numbers& or passwords

to anyone else.

'eriodically change their passwords

Should promptly log out from the

ser(iceShould regularly check their account

balances and statements to identify

unusual transactions.


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53153240 Internet Banking

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