7/30/2019 Electronic Payment System and E- Banking
1/15
Prof. (Dr.) V. Balakista Reddy
Professor of International Law &Head, Centre for Air & Space LawNALSAR University of Law, Hyderabad
E-mail: [email protected]: www.nalsar.ac.in
7/30/2019 Electronic Payment System and E- Banking
2/15
Introduction
Internet banking refers to systems that enable bankcustomers to access accounts and general informationon bank products and services through a personalcomputer (PC).
Today, websites, electronic mail, and electronic bill
payment systems are an important way for banks toreach their customers
7/30/2019 Electronic Payment System and E- Banking
3/15
Role of Financial system a number of entities that work together to permit the transfer of
value of financial claims by means of systematic procedures.
entities known as financial intermediaries participate.
The financial system lubricate the wheels of commerce, moderncommerce would grind to a halt without the payment systems areregarded as an exciting and strategically crucial feature ofelectronic commerce.
the newer systems for electronic payment has introduced newroles for example. The processing, communicating and storing ofdigital data as value. Thus entities such as digital service providesand certification authorities now participate directly in these
payment system.
7/30/2019 Electronic Payment System and E- Banking
4/15
Meaning of E- Banking
e-banking implies provision of banking products andservices through electronic delivery channels.
Some time in the form of automatic teller machines (ATMs)and telephone transactions.
recent times, it has been transformed by the internet - a newdelivery channel that has facilitated banking transactions forboth customers and banks.
For customers, the internet offers faster access, is moreconvenient and available around the clock irrespective ofcustomers location.
7/30/2019 Electronic Payment System and E- Banking
5/15
Need of E- Banking
widespread growth of the internet
customers may use this technology anywhere in the world toaccess a banks network.
The internet- enabling technology-has made bankingproducts and services available to more customers by
eliminating geographic and proprietary systems barriers. opportunities to expand or change their product and service
offerings.
internet for delivery of banking products and services
no longer confined to the branches In true internet banking, any inquiry or transaction is
processed online without any reference to the branch at anytime. Providing internet banking is increasingly becoming a
need to have than a nice to have service.
7/30/2019 Electronic Payment System and E- Banking
6/15
ew oppor un es o ere y e-banking -Business Strategies
to scale borders, change strategic behaviour and thus bringabout new possibilities.
moved real banking behavior closer to neo- classicaleconomic theories of market functioning.
absolute transparency of the market, clients (both businessas well as retail) can compare the services of various banksmore easily.
the internet has significantly reduced the physical costs of
banking operations. internet has facilitated its transmission
electronic banking services, whether delivered online orthrough other mechanisms
7/30/2019 Electronic Payment System and E- Banking
7/15
The Payment Systems
Money
The term money is a generic one that can be applies toa wide array of objects depending on the context.
Characteristics of money
Acts as a medium of exchange
Act as a unit of exchange
a measure of what is owed, by whom and to whom. Act as a means of final payment
7/30/2019 Electronic Payment System and E- Banking
8/15
Paying for goods and Services in thetraditional way
A service is provided ora product ismanufactured
The service or productis brought and paidfor with cash or bycard
Productor
service
Payment(Cash or Card)
Bank
7/30/2019 Electronic Payment System and E- Banking
9/15
ay ng or goo s an serv cesusing Electronic technology
SellersComputer
BuyersComputer
Providing aservice ormanufacturinga product
Electronictransfer of
value
Product orservicereceived
BANK
7/30/2019 Electronic Payment System and E- Banking
10/15
Continue Automated Teller Machines Electronic Fund Transfer at the Point of Sale (EFTPOS)
These transactions incorporate from point of sale, typically at a paymentterminal within the premises of merchants. Online Payment Process
Who are the participants involved in an online transaction? What are the various payment modes? How the online transaction process works?
Participants The participants involved in an online transaction are: Customer Merchant Card issuer/ customers bank
Merchants bank Acquirer Payment gateways
Payment Modes Cash Cheque
Credit
7/30/2019 Electronic Payment System and E- Banking
11/15
Electronic Payment System Risks
Credit risk:
Liquidity risk:
Transaction risk Strategic risks
Reputation Risk:
Compliance risk
Foreign exchange risk
ADVANTAGES OF E BANKING
7/30/2019 Electronic Payment System and E- Banking
12/15
ADVANTAGES OF E-BANKING Benefits to Customers
Anytime Banking
Anywhere Banking Quick Service
Saving in Time
Customer Satisfaction.
Benefits to Banks Minimise cost
Global Coverage
Central Data Base
Customer-Bank Relationship. Reduces paper work
Minimise Frauds
High Productivity
Advertising Tool
7/30/2019 Electronic Payment System and E- Banking
13/15
Continue Benefits to Government
Global Market
Cash less Banking
Transparency.
Benefits to Merchants Traders
Minimise Risk
Instant Settlement Promotions of business enterprises
Increased purchasing
7/30/2019 Electronic Payment System and E- Banking
14/15
LIMITATION OF E-BANKING
Banking System not Ready Laws of Land Not Ready
Lack of Infrastructure Facilities
adequate steps have not yet been taken (facilities )
Security Issue
Costly
Low level of Awareness
Hesitation on the part of Customers
Lack of Initiative
Insignificant Role of Govt
7/30/2019 Electronic Payment System and E- Banking
15/15
Thank You
Top Related