Question

Explain the following term/concept:

E-banking Services

Answer 1

E-banking stands for electronic banking. It is also known as 'Virtual Banking' or 'Online Banking'. E-banking is the result of the development in the field of electronics and computers. Under E-banking, the banking operations are computerised.

1. Automated Teller Machine: ATMs are electronic machines that the customer operates on his own to withdraw or deposit money. They can also be used for other banking transactions, such as balance enquiries, transferring money, requests for chequebooks or bank statements, etc.
2. Credit Cards: A credit card is a payment card that 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. Credit cards offer convenience to customers, as they 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 personalised debit and credit cards as per the requirements 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 on "real time" and on a "gross basis." It is the fastest money transfer system through the banking channel.
5. NEFT: NEFT stands for National Electronic Fund Transfer. Under this system, funds are transferred electronically from one branch to another branch or one bank to another bank in the country. The client has to give details of NEFT code of branch and account number of beneficiary to whom the money is to be transferred.
6. Net Banking and Mobile Banking: With the introduction of net banking, the client is able to transact banking operations using computers, laptops, and other gadgets. Mobile banking refers to the use of banking services using mobile phones. The client registers with the bank for this facility and gets a unique code for transactions.
7. IMPS Facility: IMPS stands for immediate payment services. This facility allows customers to instantly transfer funds to any other bank account.