Question

Write a note on Internet banking.

Answer 1

Internet banking is a collective term for E-banking, online banking, virtual banking (operates only on the Internet with no physical branches), direct banks, web banking, and remote banking. Internet banking allows customers of a financial institution to conduct various financial transactions on a secure website operated by the banking institutions. This is a very fast and convenient way of performing any banking transaction.

It enables customers of a bank to conduct a wide range of financial transactions through its website. In fact, it is like a branch exclusively operating of an individual customer. The online banking system will typically connect to the core banking system operated by customers themselves (Self-service banking).

• Advantages:

1. The advantages of Internet banking are that the payments are made at the convenience of the account holder and are secured by user name and password, i.e. with Internet access it can be used from anywhere in the world and at any time.
2. Any standard browser (e.g. Google Chrome) is adequate. Internet banking does not need .installing any additional software.