Question

Explain the meaning of e-banking. State any three features of e-banking.

Answer 1

 e-Banking: e-Banking or electronic banking is the latest wave in information technology. It can be defined as the services provided by the banks on the internet. It involves low transaction costs, adds value to the banking relationship and empowers customers. Electronic services offered by the bank are Electronic Funds Transfer (EFT), Automated Tekker Machines (ATM), Electronic Data Interchange (EDI), Credit cards, Debit cards, etc. These services help the customers to conduct banking transactions such as managing savings, applying for loans, checking accounts, paying bills, etc. over the internet a personal computer, mobile telephone, etc.
Features of E-Banking are :

• It facilitates 24 hours of banking services to consumers.
• It involves electronic services offered by the bank I .e. Electronic Funds Transfer (EFT), Automated Teller Machines (ATM). Electronic Data Interchange (EDI) etc.
• It provides greater security to the customers as they can avoid travelling with cash.
• It also offers unlimited access to the bank.
• It keeps a record of each and even transaction.