Question

Define any four types of e-banking services.

Answer 1

E-banking Service:

E-banking stands for electronic banking it is also called 'Virtual Banking'. E-banking is the result of the development in the field of electronics and computers. Under E-banking, banking operations are computerized. Some of the elements of E-banking are as follows:

1. Automated Teller Machine: ATMs are electronic machines that are operated by the customer on his own to withdraw or deposit money. It can be used for other banking transactions also such as balance inquiries, transferring money, request for a checkbook or bank statements, etc. Nowadays, ATMs also provide the facility for cash deposits through CDM (cash deposit machines).
2. Credit Cards: A credit card is a payment card. It allows the cardholder to pay for different transactions he performs. The issuing bank creates a revolving account and grants a line of credit to the customer or user. The credit card offers convenience to customers as customer need not carry cash.
3. Debit Cards: Most banks nowadays offer debit cards as soon as the account is opened by the account holder. Through debit card payments, the amount gets deducted from the account holder's account. Some banks offer personalized debit and credit cards as per the requirement of the customer.
4. RTGS: RTGS stands for Real Time Gross Settlement. RTGS is a fund transfer system where the transfer of funds or money takes place from one bank to another bank in "real-time" and on a "gross basis". It is the fastest money transfer system through the banking channel.
   1. Real-Time Settlement means payment transaction is not subject to any waiting period. The transactions are settled as soon as they are processed. The receiving bank has to credit the account of the client within 2 hours of receiving the fund's transfer message.
   2. Gross Settlement means the transactions are settled on one to one basis without bunching with any other transactions. The minimum amount to be remitted through RTGS is Rs. Two lacs while there is no upper limit for transactions. However, the amount changes from bank to bank.