What is internet banking?

 

What is internet banking?

Online banking, an electronic payment method called e-banking or virtual banking, allows customers of a bank or other financial institution to make financial transactions online. Through the website of the financial institution, the institution carries out various types of financial activities.

Using internet banking, the user can transfer funds from his account to other accounts of the same bank or any other bank.

The user must have access to the Internet. Security of transactions is a major concern. When using online banking, you should follow strict password rules and change your password every six months, because password security is another important issue. Your banking information can be spread across multiple devices, making it even more insecure. Depositing money in online banking becomes complicated.

There are several types of online financial transactions, including:

(1) National Electronic Fund Transfer (NEFT)

• National Electronic Fund Transfer (NEFT) is a nationwide payment system that makes it easy for individuals to send money to each other. The scheme allows individuals, businesses and corporations to transfer funds electronically from any bank branch to any other person, company or business, having an account with any bank. Any other bank in the country which is participating in this scheme. NEFT allows any individual or business, who has an account with a bank branch, to send funds.

• Even customers without bank accounts can deposit cash at NEFT-enabled branches and ask them to use NEFT for funds transfer. But each cash remittance transaction will be limited to a maximum of Rs 50,000. Consequently, NEFT enables senders or remittances to carry out transactions related to money transfer even without having a bank account. NEFT currently operates in hourly batches; there are twelve settlements between 8 am and 7 pm on weekdays (Monday to Friday) and six on weekends. On Saturdays, settlements take place from 8 am to 5 pm to 1 pm.

The features provided by NEFT are as follows:

1. NEFT facilitates online funds transfer, eliminating the need to visit the bank.
   
   
2. It has no upper or lower limit.
   
   
3. Every local bank office provides this service.
   
   
4. The basis of NEFT is secure.
   
   
5. It is available during normal business hours, Monday to Friday from 8am to 6:30pm, and on weekdays from 8am to 1pm.

(2) Real Time Gross Settlement(RTGS)

• The continuous (real-time) settlement of fund transfers one at a time on an order by order basis (without netting) is known as RTGS. The term "real time" refers to the immediate processing of instructions as they are received, as opposed to at a later date; "gross settlement" refers to the settlement of money transfers are made on an individual basis (on an instruction by instruction basis). Because the money settlement occurs in the Reserve Bank of India's books, the payments are irreversible and conclusive.

• The primary purpose of the RTGS system is to handle high-value transactions. RTGS requires a minimum remittance of 2 lakh. Transactions made via RTGS have no maximum limit. Banks have access to the RTGS service for client transactions between 9.00 and 16.30 hours on weekdays and between 9.00 and 14.00 hours on weekends. Hours on Saturdays are set aside for settlement at the RBI end. However, the timings that the banks follow might change depending on the customer timings of the bank branches.

The features offered by RTGS are listed below:

1. In real time, in a few moments.
   
   
2. The minimum amount permitted is Rs. 2,000,000.
   
   
3. It is only available from branches that have RTGS capabilities.
   
   
4. On days that banks are open for business, it is available from 8 a.m. to 4 p.m. Monday through Friday and Saturday are the days I work.

(3) Electronic Clearing system (ECS)

• ECS is a different way to make payments for utility bills, such as phone bills, electricity bills, insurance premiums, card payments, and other similar expenses. 

• By collecting or receiving loan payments, among other things, banks, businesses, governments, and government agencies may improve customer service and avoid the necessity of issuing and processing paper instruments.

(4) Immediate Payment Service (IMPS)

• Through mobile phones, IMPS provides a 24X7, real-time, interbank electronic fund transfer service. Using a mobile device, the internet, or an ATM, IMPS is a strong tool that allows for immediate money transfers between banks throughout India in a way that is both secure and convenient. economical from both a financial and non-financial standpoint.

• The fact that IMPS is always accessible is its primary advantage. In an emergency, it's an excellent banking platform that transmits money instantly. The transaction limit for IMPS transfers is often Rs. 2 lakh. However, there are no restrictions on the maximum amount that banks may charge for an IMPS transaction. Customers can use the IMPS service to perform mobile banking transactions, get payments, and move money. When transferring cash via IMPS, we need at least one of the following from the beneficiary: their mobile number, Mobile Money Identifier (MMID), bank account number, and IFSC Aadhaar number.

The goals of IMPS include:

1. Giving bank clients the ability to use mobile devices as a means of accessing their bank accounts and transfer money.
   
   
2. Using only the recipient's mobile number to facilitate payment.
   
   
3. To assist the Reserve Bank of India's (RBI) aim of converting retail payments to electronic format.
   
   
4. The Reserve Bank of India Mobile Payment Guidelines 2008 were created in order to enable the mobile payment systems that have already been implemented in India to function across banks and in a way that is safe and secure for mobile carriers.
   
   
5. Establish the groundwork for a comprehensive range of mobile banking services.

(5) Online Bill payment.

• Online bill payment methods are a practical, safe, and affordable way to make sure all of your payments are made on time. With this service, you can pay your bills securely online or via an app. Financial firms offer this service in a variety of forms. With a secure electronic service, consumers may pay their bills online rather than mailing checks.

• The majority of the time, online bill payment is connected to a bank account from which money is automatically taken to pay bills that are either one-time or recurring. One of the primary benefits of paying bills online is the reduction in paper waste. You may use fewer paper checks by paying your bills online. Along with reducing paper waste, it also eliminates the cost of mailing and envelopes.

The Features of online bill payment are listed below:

1. It's easy to use and saves time.
   
   
2. It is secure, safe, and helpful for keeping records.
   
   
3. Managing your money is made easier and more environmentally friendly with online bill pay.