Internet banking or E-banking implies that any user or a bank customer who has a personal computer and a browser to his or her bank account through the website of his or her bank so that they can carry out any of the virtual banking procedures. In the internet banking system the database of the bank is centralised and is web enabled. All the services that the bank has allowed to carry out on the internet are displayed in the menu of the bank website. Out of these services the desired service can be selected, going further the interaction between the computer and the internet banking website is dictated by the kind of service that is being performed. The conventional model of a bank is now being replaced by alternative delivery channels and ATM networks.
Once the branches of the banks are connected together by the satellites links there would be no physical bank branch. It would be more of a borderless entity that would allow anytime anywhere and anyhow banking.
This is how the internet banking in India works –
- Information only system – general information for instance the interest rates, bank products, branch location, loan and fixed deposit calculators are provided for in the bank’s website. There are also facilities for downloading various kinds of application forms. The communication between the customer and the bank is normally done through email. There is absolutely no interaction between the customer and the bank’s application system. And the best part is that in this system there is no possibility that any unauthorised person will get into the bank system through the internet.
- Electronic information transfer system – The internet banking system in India provides customer specific information which includes account balances account summaries and bank statements. The information is largely in the read only format. The customer is identified and authenticated through a password. The information that the customer is looking for us fetched from the computer system in an offline mode or a batch mode.
- Fully electronic transactional system – This system in the internet banking allows bi-directional capacities. The customer can submit the transaction for online update. This system calls for a huge security and control and in such an environment the web server and application systems are linked to secure infrastructure. A technologically advanced computerisation, networking and security, intra-bank payment gateway and legal infrastructure are what it is comprised of.
- ATM or the Automated Teller Machine – it is designed to perform the most important function of the bank. It is made operational by a plastic card with special features and this plastic card cuts down on the cheques, banking hour restriction, long queues, paper verification and other formalities. These are electronic debit cards
These are a few points that are worth noting when it comes to internet banking.