E banking, or electronic banking, is a method used to allow people to make transactions and manage their money without having

to go to their bank. Electronic banking can be accesse

Introduction
Electronic banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking !nternet banking virtual banking online banking home banking remote electronic banking and phone bank. PC banking and !nternet or online banking is the most fre"uently used designations. !t should be noted however that the terms used to describe the various types of electronic banking are often used inter changeably. #lectronic banking is an activity that is not new to banks or their customers. $anks having been providing their services to customers electronically for years through software programs. These software programs allowed the user%s personal computer to dial up the bank directly. !n the past however banks have been very reluctant to provide their customers with banking via the !nternet due to security concerns.

Today, banks seem to be jumping on the bandwagon of Internet banking. Why is there a sudden increase of bank interests in the Internet? The first major reason is because of the improved security and encryption methods developed on the Internet. The second reason is that banks did not want to lose a potential market share to banks that were quick to offer their services on the Internet. any of the banks like I!I!I, "#$!, IndusInd, I#%I, !itibank, &lobal Trust %ank '&T%(, %ank of )unjab and *TI were offering +,banking services. %ased on the above statistics and the analysts- comments that India had a high growth potential for e,banking the players focused on increasing and improving their +,banking services. .s a part of this, the banks began to collaborate with functions online Why is there a sudden increase of bank interests in the Internet? The first major reason is because of the improved security and encryption methods developed on the Internet. The second reason is that

banks did not want to lose a potential market share to banks that were quick to offer their services on the Internet.

E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic interactive communication channels. #banking includes the systems that enable financial institution customers. !ndividuals or businesses to access accounts transact business or obtain information on financial products and services through a public or private network including the !nternet Customers access e-banking services using an intelligent electronic device. The #-banking was firstly introduced in !ndia by the !C!C! around &''(. There after many other banks like )*+C !ndus!nd bank !*$! Citibank Trust $anks ,T! etc. followed the service. -s today private and foreign bank had started capturing the market through e-banking hence .the competition is heating up and the lack of technology can make a bank loose a customer/ so now the public banks are breaking the shackles of traditional set-up and gearing up to face the competition posed by the private sector counterparts.

The Global E-Banking Scenario

The banking industry is e0pected to be a leading player in e-business. 1hile the banks in developed countries are working primarily via !nternet as non-branch banks banks in the developing countries use the !nternet as an information delivery tool to improve relationship with customers. In early /001, appro2imately 30 percent of e,business in the *4 was concentrated in the financial services sector, and with the e2pected 10,fold increase of the %ritish e, business market by /005, the share of the financial services will further increase. .round one fifth of $inish and 6wedish bank customers are banking online, while in the *6, according to *7!T.#, online banking is growing at an annual rate of 30 percent and the numbers of online accounts are e2pected to reach 18 million by /009. $anks have established an !nternet presence with various ob2ectives. 3ost of them are using the !nternet as a new distribution channel. +inancial services with the use of !nternet may be offered in an e"uivalent "uantity with lower costs to the more potential customers. There may be contacts from each corner of the world at any time of day or night. This means that banks may

enlarge their market without opening new branches. The banks in the ,4 are using the 1eb to reach opportunities in three different categories: to market information to deliver banking products and services and to improve customer relationship In Asia the ma2or factor restricting growth of e-banking is security in spite of several countries being well connected via !nternet. -ccess to high-"uality e-banking products is an issue as well. 3a2ority of banks in -sia are 2ust offering basic services compared with those of developed countries. 4till e-banking seems to have a future in -sia. -ccording to 3c5insey survey ebanking will succeed if the basic features especially bill payment are handled well. $ill payment was the most popular feature cited by 67 percent of respondents of the survey. )owever providing this service would be difficult for banks in -sia because it re"uires a high level of security and involves arranging transactions with a variety of players In India appro0imately one percent of high and middle-income group banking customers conducted banking on the !nternet in 8777 compared to 9 to ( percent in 4ingapore and 4outh 5orea. !n 877& a :eserve $ank of !ndia survey revealed that more than 87 ma2or banks were either offering e-banking services at various levels or planned to do so in the near future. 4ome of the private banks included !C!C! $ank )*+C $ank !ndus!nd $ank !*$! $ank Citibank ;lobal Trust $ank $ank of Pun2ab and ,T! $ank. !n the same year out of an estimated 7.' million !nternet user base appro0imately &< percent were reported to be banking on the !nternet. The above statistics reveal that !ndia does have a high growth potential for e-banking. The banks have already started focusing on increasing and improving their e-banking services. -s a part of this the banks have begun to collaborate with various utility companies to enable the customers to perform various functions online. !n 877& over 97 percent of the banks in the ,4 were offering e-banking services. )owever large banks appeared to have a clear advantage over small banks in the range of services they offered. 4ome banks in the ,4 were targeting their !nternet strategies towards business customers. -part from affecting the way customers received banking services= e-banking was e0pected to influence the banking industry structure. The economics of e-banking was e0pected to favor large banks because of economies of scale and scope and the ability to advertise heavily. 3oreover e-banking offered entry and e0pansion opportunities that small banks traditionally lacked. In Europe the !nternet is accelerating the reconfiguration of the banking industry into three separate businesses: production distribution and advice. This reconfiguration is being further driven by the !nternet due to the combined impact of: The emergence of new more focused business models. >ew technological capabilities that reduces banking relationship and transaction costs. )igh degree of uncertainty over the impact that new entrants will have on current business models

Though e-banking in the #urope is still in the evolutionary stage it is very clear that it is having a significant impact on traditional banking activities. ,nlike in the ,4 though large banks in the #urope have a competitive edge due to their ability to invest heavily in new technologies they are still not ready to embrace e-banking. )ence medium-si?ed banks and start-ups have an important role to play on the e-banking front if they can take concrete measures "uickly and effectively. Indian E-banking Scenario -s per the international report the banking transactions on a brick and mortar banking costs around @ &.&. 1hile through -T3 it costs around @ 7.8< and 2ust & percent of over the counter banking in case of !nternet banking. 4tatistics such as these have woken the !ndian $anking !ndustry. Thus the !ndian banking system is seeing a fabulous change in the "uality of service provided by them. Technology is the root of this change which is implemented by the banks% to win more business from customers. -lmost all the private sector banks are moving towards e-enabling their e0isting products. )*+C $ank and !C!C! $ank have taken a lead in introducing e-banking in !ndia. !nternet banking starts from migrating e0isting products to the net. This started initially with simple functions such as getting information about interest rates checking account balances and computing loan eligibility. Then the services were e0tended to online bill payment transfer of funds between accounts and cash management services for corporate. :ecently banks started setting up payment gateways for $8$ and $8Ctransactions. This is to facilitate payment for ecommerce transactions by directly debiting bank accounts or through credit cards. $anks can earn a commission based income on the transaction or sale value resulting in higher other income. This could be more than the revenues they can generate from credit card transactions. Private sector banks have leveraged the !nternet effectively in taking away the customers from public sector banks and significantly increased their revenue potential. !nternet banking is 2ust one manifestation of these banks% technological capabilities. They have a complete automation an electronic customer database real time transaction processing capabilities and the latest technological platforms. 3anagement of these banks is very focused in using technology as a key competitive tool. The capability of the management is also visible in terms of their profitability. -mong the private sector banks )*+C $ank and !C!C! $ank have e0cellent returns on e"uity compared to their peers in the industry.

Who offers what? Citibank 4ee up-to-date account information Aiew transaction details Aiew account statement for up to &8 months Brder demand drafts to couriered free to over 877 locations Brder a che"ue book stop payments :e"uest a deposit Pay utility bills #-mail "ueries

ICICI Bank -ccount information C summary of account and transactions $ills payment +unds Transfer including third-party transfers :e"uests for che"ue books stop payment account opening :eporting loss of -T3s card Bnline e-shopping payments Communication with -ccount 3anager Personali?ed viewing of content updates C personal finance select articles onecommerce

!"C Bank :eal-time account information incl. transactions Transfer money between accounts $ill payment facility Third party funds transfer C within )*+C bank :e"uest for *e and *raftD$ankers Che"ue 4top payment re"uests Bpening fi0ed-deposit accounts 4ending messages to the bank via e-mail

#ediu$s of E-banking

%arious products and ser&ices #lectronic banking also known electronic fund transfer (#+T) uses computer and electronic technology as a substitute for checks and other paper transactions. #+Ts is initiated through devices like cards or codes that let you or those you authori?e access your account. 3any financial institutions use -T3 or debit cards and Personal !dentification >umbers (P!>s) for this purpose. 4ome use other forms of debit cards and personal !dentification >umbers (P!>s) for this purpose. 4ome use other forms of debit cards such as those that re"uire at the most your signature or a scan. The federal #lectronic +und Transfer -ct (#+T -ct) covers some electronic consumer transactions. +ollowing are the electronic medium by which services are generally provided by the banks as a part of e-banking services. '( Internet Banking )( AT# *Auto$atic Teller #achine+ ,( -hone Banking .( #obile Banking /( -a0$ent Cards *!ebits1Credit Card+ -ll the above mediums provide services which can be also known as .any time anywhere banking/. This facilitates the customer of the bank to operate their account from any corner of the world without visiting local or any subsidiary branch of their banks. #fforts are made by the bank not only to provide the facility to the customer but also to reduce the operational cost of the bank by providing e-banking services. 4o with this

$anks have to employ less staff and still would be able to deliver service to the customer round the corner.

Internet Banking >et banking is a web-based service that enables the banks authori?ed customers to accesstheir account information. !t allows the customers to log on to the banks website with thehelp of bank%s issued identification and personal identification number (P!>). The banking system verifies the user and provides access to the re"uested services the rage of products and service offered by each bank on the internet differs widely in there content. 3ost banks offer net banking as a value-added service. >et banking has also led to the emergent of new banks which operate only through the internet and do not e0ists physically 4uch banks are called .virtual/ banks or .!nternet Bnly/ banks. - couple of years ago there was a belief even among bankers that customers opening new accounts wanted the online banking facility 2ust to Efeel good% and very few of them actually used that services. Today bankers believe that the trend from Enice to have% is changing to Eneed to have% .after all it depends on how busy a person is. 4ervices provided through !nternet $anking 4ervices provided through !nternet $anking account information #-che"ues (Bnline +und Transfer) $ill Payment 4ervice :e"uests -nd !ntimations *emat -ccount share trading

Account infor$ation Provides summary of all bank accounts -llow transaction tracking which enables retrieval of transaction details based on che"uenumber transaction amount and date. Provide account statement and transaction reports used on user-defined criteria. Customers can even download and print the statement of accounts. E-Che2ues *3nline "und Transfer+ Customer can transfer funds: Transfer funds between accounts even if they are in different branches% cities Customer can also transfer funds to any person having an account with the same bank anytime anywhere using third party funds transfer option. Bill -a0$ent Ser&ice $anks $ill Pa is the easiest way to manage bills. -Dc holder can pay their regular monthly bills i.e. telephone electricity mobile phone insurance etc. at anytime anywhere for free. 4aves time and effort. 3ake bill payments at customer%s convenience form their home or office. Fets aDc holders check their hill amount before it is debited form their account. >o debits to account without their knowledge. >o more missed deadlines no more loss of interest C aDc holder can schedule their bills in advance avoid missing the bill deadlines as well as earn e0tra interest on their money

Track payment history C all payments to a biller are stored automatically for future reference. >o "ueuing up at collection centers or writing che"ue anymoreG Hust a few clicks and customers account will be debited for the e0act amount they ask.

4e2uests and Inti$ations Can electronically submit a re"uest for: Che"ue-book 4top payment instructions Bpening a fi0ed deposit Bpening a recurring deposit !ntimate for the loss of -T3 card :egister online for phone and mobile banking Che"ue status Bnline application for debit card !ssue a ** or a $anker%s che"ue form account at special rates. Hust select the account to be debited form and give details of the amount location and beneficiary. The demand draft will be couriered to aDc holder at their mailing address. Customers can get their applications for issuance of Fetters of Credit and $ank ;uarantees processed online $ook your :ailways Ticket Bnline

!e$at Account and Share Trading !e$at Account *emat is commonly used abbreviation of E*emateriali?ation% which is a process whereby securities like share debentures are converted from the Ematerial% (paper documents)unto electronic data and stored in the computer of an electronic *epository.

- depository is a security Ebanks % where demateriali?ed physical securities are held in custody and form where they can be traded. This facilitates faster risk-free and low cost settlement.

Share Trading !n share trading a customer can buy and sell securities online without stepping into a broker%s office. Bnce the share are demateriali?ed then the trading can be done from )ome or office. -s *emat aDc are directly linked to the customer%s bank aDc so there is no need to write che"ue for the payments or to fill up the slips to deposit the che"ue. -mount for the purchase and sale of securities is automatically debited or credited to their bank aDc. it also brings the same convenience while investing in 3utual funds also )assle free and Paperless

AT#s -utomated Teller 3achines or 86-hour Tellers are electronic terminals that let you bank almost anytime. To withdraw cash make deposits or transfer funds between accounts you generally insert an -T3 card and enter your P!>. 4ome financial institution and -T3 owners charge a fee particularly to consumers who don%t have accounts with them or on transactions at remote locations. ;enerally -T3s must tell you they charge a fee and its amount on or at the terminal screen before you complete the transaction. Check the rules of our institution and -T3s you use to find out when or whether a fee is charged. !t won%t be 2ust if ! start e0plaining what an -T3 is. -T3s and cash dispensers are by far the largest investment ever made in electronic self-service by financial institutions. Bver ,4@ 67 billion has been invested in simply buying these machines and many times that in running them. There are now over &.& million machines operating in over &67countries worldwide. The banks are losing the cashier%s checks check cashing and even cash dispensing to the cstores and grocery stores. They are asleep at the switch and watching more transactions walk away to convenience stores and supermarkets that provide 86 hour access and integrated transactions.

-T3s do provide a larger set of functions such as check cashing ticket sales or money orders. 1e already know that cash dispensing as a dedicated function is a sustainable applications the "uestion is whether that application can be incorporated successfully into a more comple0 consumer product that offers multiple applications.

!t is worth noting that due to market saturation overall -T3 usage is increasing while transaction volume on a per--T3 basis is now in decline. Cash withdrawal: 1ithdraw up to :s.&9 777D- per day from your account. +ast cash options provide the facility of withdrawing prefi0ed amounts. ,ltra +ast Cash opetion allows you to withdraw :s.I777D- in one shot. Balance En2uir05 5now your ledger balance and available balance #ini State$ent5 ;et a printout of your last J transactions and your current balance. !eposit Cash 1 Che2ues5 available at all full function -T3s. Customers can deposit both cash and che"ues. D Cash deposited in -T3s will be credited to the account on the same day (provided cash is deposited before the clearing) and che"ues are sent for clearing on the ne0t working day. "unds Transfer5 Transfer funds from one account to another linked account in the same branch. -I6 Changes: Change the Personal !dentification >umber (P!>) of -T3 or *ebit card. -a0$ents: The latest feature of our -T3s this functionality can be used for payment of bills making donations to temples D trusts buying internet packs airtime recharges for prepaid mobile phones and much moreK 3thers: :e"uest for a checkbook from our -T3s and our concerned branch will dispatch it such that it reaches you within &7 working days.

AT# Ad&antages ).-hour access to cash Lou can withdraw up to :s. 67 777D- per day on your -T3 Card. The fast cash option saves your time by providing the cash in denominations of :s. 977D Balance in2uir0 Lour updated balance will appear on the screen and will also be printed on the transaction slip. #ini-state$ent re2uest ;et details of the last ' transactions on your account with the ministatement along with your balance. Che2ue book re2uest 4end us a re"uest for a che"ue book or account statement it will arrive at your doorstep. "unds transfer5 Transfer money from one of your accounts to another. !t%s easy select the account from which you want to transfer then indicate the amount and the account to which you want it transferred. $oth accounts must be linked to your -T3 card and customer !*. - ma0imum of 9 saving and 9 Current accounts can be linked. -I6 change Lour can conveniently charge your (P!>) given at the time of opening your account) whenever you wish. 4tay totally in control and ensure complete security for your -T3 Card. Bill -a05 -a0 your cellular telephone and electricity bills using your -T3 Card.

An0ti$e cash deposits5 Lour cash or che"ues can be deposited into your account and the -T3 will immediately print a receipt for the same.

-hone Banking >ow your bank account is now 2ust a phone call away. Through Phone $anking you can: Check your account balance.

Check the last 9 transactions in your account.

#n"uire on the che"ue status.

)ave a mini statement fa0ed across to you.

:e"uest for a che"ue book D -ccount statement.

#n"uire on your +i0ed deposits D T*4.

Bpen a fi0ed deposit

:e"uest for *emand *raft D 3anagers Che"ues.

Transfer funds amongst your linked accounts

Pay utility and )*+C $ank Credit Card bills.

*o a stop che"ue payments.

:eport loss of your -T3 D*ebit Card.

Product information.

#n"uire on the interest D #0change rates.