Online Banking Servises
- Opening accounts
- Request for check book
- Viewing and printing accounts details
- Receipt, review and payment on-line bills
- Circulation of funds between accounts within the same bank
- Queries on the status of the requests
- Opening of deposits – fixed, recurring etc.
- Transfer the amount to the account holder to another account holder of the bank.
- online shopping
Types of online financial transactions
Broadly, electronic banking transactions can be divided into two categories:
Remote / Online Payment Transactions (Transactions which do not require physical payment instruments to be presented at the point of transaction, such as internet banking, mobile banking, card not present (CNP) transactions), prepayment payment instruments (PPI), and
Face-to-face / proximity payment transaction (Transactions in which physical payment instrument is required, such as card or mobile phone should be present in place of transaction such as ATM, POS, etc.)
National Electronic Funds Transfer (NEFT) System
National Electronic Funds Transfer (NEFT) is a nationwide payment system, which facilitates one-to-one fund transfer. Under this scheme, individuals, firms and corporates can transfer funds from any bank branch to any other bank branch in any country, firm or corporate account holder in any bank branch. The person holding the account with the bank branch, the firm or corporates can transfer funds using NEFT. Even those who do not have a bank account (walk-in customers) can also deposit cash in NEFT-enabled branches using instructions to transfer money using NEFT. However, such cash dispatch will be limited to a maximum of Rs. 50,000 / – per transaction. NEFT, thus, facilitates the origin or remitter to initiate the money transfer transaction without a bank account. At present, NEFT operates in hourly batches – weekdays (Friday to Friday) from 8 a.m. to 7 p.m. and on Saturday, there are six settlements from 8 a.m. to 1 p.m.
Real Time Gross Settlement (RTGS) System
RTGS is defined as a continuous (real-time) settlement of funds, which individually relocates on the basis of order order (without netting). ‘Real Time’ means processing of instructions at the time which they have received rather than later; ‘Gross Settlement’ means that money transfer instructions are settled individually (on an instruction basis). Keeping in mind that money is settled in the books of Reserve Bank of India, payments are final and irreversible. The RTGS system is mainly for big value transactions. The minimum amount to be transmitted through RTGS is 2 lakhs. There is no upper ceiling for RTGS transactions. For customer transactions RTGS service banks are available from 9.00 hours to 16.30 hours on weekdays and from 9.00 hours to 14:00 on Saturday for settlement at the end of the RBI. However, depending on the timing of the bank branches, the time followed by the banks can vary.
Electronic Clearing System (ECS)
ECS utility – An alternative way to influence payment transactions in relation to telephone bills such as bill-payment, electricity bill, insurance premier, card payment and loan repayment, etc., which require the release and handling of paper equipment. And thereby facilitates better customer service by banks / companies / corporations / government departments etc., which collect / receive payments .
Immediate Payment Service (IMPS)
IMPS offers a quick, 24X7, interbank electronic fund transfer service through mobile phones. IMPS is a powerful tool to transfer fund immediately within the banks of the entire India through mobile, internet and ATM, which is not only safe in both financial and non-financial approaches.
Benefits of Online Banking
Online banking has many benefits, such as convenience, transparency, access to anytime, anywhere, payment of bills and one stop management of payment and cost efficiency.
There are risks, however, that consumers need to be aware and take necessary preventive measures. One of the security-related risks includes unauthorized access to user accounts
Source : RBI