E-BANKING

Internet banking or E-banking:

Internet banking (or E-banking) means any user with a personal
computer and a browser can get connected to his bank’s website to
perform any of the virtual banking functions. In internet banking
system the bank has a centralized database that is web-enabled. All
the services that the bank has permitted on the internet are displayed
in menu. Any service can be selected and further interaction is dictated
by the nature of service. The traditional branch model of bank is now
giving place to an alternative delivery channels with ATM network.
Once the branch offices of bank are interconnected through terrestrial
or satellite links, there would be no physical identity for any branch. It
would a borderless entity permitting anytime, anywhere and anyhow
banking.
The network which connects the various locations and gives
connectivity to the central office within the organization is called
intranet. These networks are limited to organizations for which they
are set up. SWIFT is a live example of intranet application.
Internet banking in India:
The Reserve Bank of India constituted a working group on Internet
Banking. The group divided the internet banking products in India into
3 types based on the levels of access granted. They are:

i) Information Only System: General purpose information

like interest rates, branch location, bank products and their
features, loan and deposit calculations are provided in the
banks website. There exist facilities for downloading various
types of application forms. The communication is normally
done through e-mail. There is no interaction between the
customer and bank's application system. No identification of
the customer is done. In this system, there is no possibility of
any unauthorized person getting into production systems of
the bank through internet.

ii) Electronic Information Transfer System: The system

provides customer- specific information in the form of account
balances, transaction details, and statement of accounts. The
information is still largely of the 'read only' format.
Identification and authentication of the customer is through
password. The information is fetched from the bank's
application system either in batch mode or off-line. The
application systems cannot directly access through the
internet.

iii) Fully Electronic Transactional System: This system

allows bi-directional capabilities. Transactions can be
submitted by the customer for online update. This system
requires high degree of security and control. In this
environment, web server and application systems are linked
over secure infrastructure. It comprises technology covering
computerization, networking and security, inter-bank
payment gateway and legal infrastructure.

iv) Automated Teller Machine (ATM):

ATM is designed to perform the most important function of
bank. It is operated by plastic card with its special features.
The plastic card is replacing cheque, personal attendance of
the customer, banking hours restrictions and paper based
verification. There are debit cards. ATMs used as spring board
for Electronic Fund Transfer. ATM itself can provide
information about customers account and also receive
instructions from customers - ATM cardholders. An ATM is an
 Electronic Fund Transfer terminal capable of handling cash
deposits, transfer between accounts, balance enquiries, cash
withdrawals and pay bills. It may be on-line or 0ff-line. The
on-line ATN enables the customer to avail banking
facilities from anywhere. In off-line the facilities are confined
to that particular ATM assigned. Any customer possessing
ATM card issued by the Shared Payment Network System can
go to any ATM linked to Shared Payment Networks and
perform his transactions.

v) Credit Cards/Debit Cards:

The Credit Card holder is empowered to spend wherever and
whenever he wants with his Credit Card within the limits fixed
by his bank. Credit Card is a post paid card. Debit Card, on
the other hand, is a prepaid card with some stored value.
Every time a person uses this card, the Internet Banking
house gets money transferred to its account from the bank of
the buyer. The buyers account is debited with the exact
amount of purchases. An individual has to open an account
with the issuing bank which gives debit card with a Personal
Identification Number (PIN). When he makes a purchase, he
enters his PIN on shops PIN pad. When the card is slurped
through the electronic terminal, it dials the acquiring bank
system - either Master Card or VISA that validates the PIN
and finds out from the issuing bank whether to accept or
decline the transactions. The customer can never overspend
because the system rejects any transaction which exceeds the
 balance in his account. The bank never faces a default
because the amount spent is debited immediately from the
customers account.

vi) Smart Card:

Banks are adding chips to their current magnetic stripe cards
to enhance security and offer new service, called Smart
Cards. Smart Cards allow thousands of times of information
storable on magnetic stripe cards. In addition, these cards are
highly secure, more reliable and perform multiple functions.
They hold a large amount of personal information,
from medical and health history to personal banking and
personal preferences.

You can avail the following services through E-

Banking.

i) Bill payment service

You can facilitate payment of electricity and telephone bills,
mobile phone, credit card and insurance premium bills as
each bank has tie-ups with various utility companies, service
providers and insurance companies, across the country. To
pay your bills, all you need to do is complete a simple one-
time registration for each biller. You can also set up standing
instructions online to pay your recurring bills, automatically.
Generally, the bank does not charge customers for online bill
payment.

ii) Fund transfer

You can transfer any amount from one account to another of
the same or any another bank. Customers can send money
anywhere in India. Once you login to your account, you need
to mention the payees's account number, his bank and the
branch. The transfer will take place in a day or so, whereas in
a traditional method, it takes about three working days. ICICI
Bank says that online bill payment service and fund transfer
facility have been their most popular online services.

iii) Credit card customers

With Internet banking, customers can not only pay their
credit card bills online but also get a loan on their cards. If
you lose your credit card, you can report lost card online.
 iv) Railway pass
This is something that would interest all the aam janta.
Indian Railways has tied up with ICICI bank and you can now
make your railway pass for local trains online. The pass will
be delivered to you at your doorstep. But the facility is limited
to Mumbai, Thane, Nashik, Surat and Pune.

v) Investing through Internet banking

You can now open an FD online through funds transfer.Now
investors with interlinked demat account and bank account
can easily trade in the stock market and the amount will be
automatically debited from their respective bank accounts and
the shares will be credited in their demat account. Moreover,
some banks even give you the facility to purchase mutual
funds directly from the online banking system.
Nowadays, most leading banks offer both online banking and
demat account. However if you have your demat account with
independent share brokers, then you need to sign a
special form, which will link your two accounts.

vi) Recharging your prepaid phone

Now just top-up your prepaid mobile cards by logging in to
Internet banking. By just selecting your operator's name,
entering your mobile number and the amount for recharge,
your phone is again back in action within few minutes.

vii) Shopping
With a range of all kind of products, you can shop online and
the payment is also made conveniently through your account.
You can also buy railway and air tickets through Internet
banking.

Advantage of Internet banking:

As per the Internet and Mobile Association of India's report on online
banking 2006, "There are many advantages of online banking. It is
convenient, it isn't bound by operational timings, there are no
geographical barriers and the services can be offered at a miniscule
cost."
Through Internet banking, you can check your transactions at any
time of the day, and as many times as you want to. Where in a
traditional method, you get quarterly statements from the bank. If the
fund transfer has to be made outstation, where the bank does not
have a branch, the bank would demand outstation charges. Whereas
with the help of online banking, it will be absolutely free for you.

Security Precautions:
Customers should never share personal information like PIN numbers,
passwords etc with anyone, including employees of the bank. It is
important that documents that contain confidential information are
safeguarded. PIN or password mailers should not be stored, the PIN
and/or passwords should be changed immediately and memorised
before destroying the mailers.
Customers are advised not to provide sensitive account-related
information over unsecured e-mails or over the phone. Take simple
precautions like changing the ATM PIN and online login and transaction
passwords on a regular basis. Also ensure that the logged in session is
properly signed out.

Benefits of Electronic Banking:

Electronic banking or online banking is now the most popular form of

e-commerce for millions of Americans. Most mainstream banks and
even credit unions now offer a host of products and services over the
Internet. Investment by banks in secure-transaction technologies and
robust IT practices has made electronic banking more reliable and
popular.

Convenience:

You can shop, pay bills, buy items at auction, and transfer
money from anywhere at any time.

Features:

Electronic banking can be carried out at any time of the day or

night as long as one has access to a PC (or other hand-held device)
and Internet connectivity.

Attractive Rates and Incentives:

Banks offer attractive interest rates for CDs that are opened
online. Many others also offer incentives, giveaways and special
offers to customers for opening accounts online.
Consolidated Portfolio Interface:

Most banks offer a seamless and consolidated interface to

customers for managing their debt and credit accounts, mortgages,
investment portfolio and other financial assets.

Time Saving:

Time saved from traveling to brick-and-mortar bank

branches for conducting banking transactions and other key
banking activities can be used productively for other pursuits.

Traditional banking and e-banking are two way for getting the benefits
from bank. Both have benefits and disadvantages.

1. Basic Introduction:

(a)TraditionalBanking

In traditional banking system, a customer can open any bank account

in banks, take the facility of saving his money by depositing money in
local bank. He can withdraw his money through check, counter
payment and through bank draft. He can meet the bank manager and
ask his problem. He can take the physical help for getting loan from
bank.

(b)E-banking
E-banking means Internet banking or modern banking or online bill. In
this method, customer gets his bank account ID and password and he
can check his account, pay his bill and print his receipt through his
home personal computer which is connected with Internet. E-banking
is development of today banking system. In other words, e-banking is
electronic banking whose facility, you can take through your regular
broadband Internet connect.

2.Benefits

(a) TraditionalBanking

Traditional banking has totally improved from previous face. Few days
ago, I went to State bank of India for withdrawing my money where
I saw many monitoring cameras. My one friend is also doing duty in
that bank. I asked question from my friend why have these cameras
been attached here? Are these on? My friend explained me that it is
more than Rs. 500,000 cost project per branch of SBI. We do not want
to take risk of customer's money. Customer's loss is our loss. We
deduct fraud case by monitoring the activities through this surveillance
cameras. I feel happy because now traditional banking has improved
and there is minimum change of fraud.

(b)E-banking

(i)Convenient

I think e-banking is convenient because we can use e-banking for

tracking my money in bank without going to bank. I am already
changing everything from traditional to online. I am tracking my
courier letter by opening the site of courier and writing the track no.
after this I can easily know when my letter will come from foreign
country.

(ii)Protection
of Environment

If we all start to use e-banking, we can also protect our environment.

Suppose, you have to withdraw Rs. 500,000 from HDFC bank and
deposit it to SBI. What will you do? You will start your vehicle and go
to HDFC bank and withdraw the money and then go to SBI for
depositing this money. By using vehicle, you are increasing the
pollution in the environment. Today is 5th June 2010, the day of world
environment. We can protect our environment by using e-banking.
Just within 5 minute, we can transfer our money from HDFC bank to
SBI bank through home e-banking facility.

3.Disadvantages

(a)TraditionalBanking

(i)Robbery

Open any day newspaper, you will see the new bank robbery case.
This is the disadvantages. Two and more thieves came and taken
bank's money is general news. No one can do same thing in e-
banking.

(ii)Time
limitation

Banks are opened from 9: 00 to 5:00 p.m. But, it may possible that
we have to pay at 11:00 p.m. which can be done through e-banking
not traditional banking.

(b)E-banking

Hacking, spyware program, computer virus and breaking online

password are the weakness of e-banking or online banking. Online big
hackers are using computer virus and after spreading it, they
compromise your computer. After this, they know all detail of your
computer and banking password and illegally transfer all your money.
Next day, your bank account may be zero. Even you can stop this
crime by writing strong password but you can not remove it totally.

E-MARKETING
E-marketing:
e-Marketing or electronic marketing refers to the application of
marketing principles and techniques via electronic media and more
specifically the Internet. The terms e-Marketing, Internet marketing
and online marketing, are frequently interchanged, and can often be
considered synonymous. e-Marketing is the process of marketing a
brand using the Internet. It includes both direct response marketing
and indirect marketing elements and uses a range of technologies to
help connect businesses to their customers. By such a definition, e-
Marketing encompasses all the activities a business conducts
via the worldwide web with the aim of attracting new business,
retaining current business and developing its brand identity.
When implemented correctly, the return on investment (ROI) from e-
Marketing can far exceed that of traditional marketing strategies.
Whether you’re a “bricks and mortar” business or a concern operating
purely online, the Internet is a force that cannot be ignored. It can be
a means to reach literally millions of people every year. It’s at the
forefront of a redefinition of way businesses interact with their
customers.
 The benefits of eMarketing over traditional
marketing:

1. Reach:
The nature of the internet means businesses now have a truly
global reach. While traditional media costs limit this kind of reach to
huge multinationals, e-Marketing opens up new avenues for smaller
businesses, on a much smaller budget, to access potential
consumers from all over the world.

2. Scope
Internet marketing allows the marketer to reach consumers in a
wide range of ways and enables them to offer a wide range of
products and services. eMarketing includes, among other things,
information management, public relations, customer service and
sales. With the range of new technologies becoming available all
the time, this scope can only grow.

3. Interactivity
Whereas traditional marketing is largely about getting a brand’s
message out there, eMarketing facilitates conversations between
companies and consumers. With a two way communication channel,
 companies can feed off of the responses of their consumers, making
them more dynamic and adaptive.

4. Immediacy
Internet marketing is able to, in ways never before imagined,
provide an immediate impact. Imagine you’re reading your
favourite magazine. You see a double-page advert for some new
product or service, maybe BMW’s latest luxury sedan or Apple’s
latest iPod offering. With this kind of traditional media, it’s not that
easy for you, the consumer, to take the step from hearing about a
product to actual acquisition. With eMarketing, it’s easy to make
that step as simple as possible, meaning that within a few short
clicks you could have booked a test drive or ordered the iPod. And
all of this can happen regardless of normal office hours. Effectively,
Internet marketing makes business hours 24 hours per day, 7 days
per week for every week of the year.By closing the gap between
providing information and eliciting a consumer reaction, the
consumer’s buying cycle is speeded up and advertising spend can
go much further in creating immediate leads.

5.Demographics and targeting

Generally speaking, the demographics of the Internet are a
marketer’s dream. Internet users, considered as a group, have
greater buying power and could perhaps be considered as a
population group skewed towards the middle-classes. Buying power
is not all though. The nature of the Internet is such that its users
will tend to organise themselves into far more focussed groupings.
Savvy marketers who know where to look can quite easily find
access to the niche markets they wish to target. Marketing
messages are most effective when they are presented directly to
the audience most likely to be interested. The Internet creates the
perfect environment for niche marketing to targeted groups.

6.Adaptivity and closed loop marketing

Closed Loop Marketing requires the constant measurement and
analysis of the results of marketing initiatives. By continuously
tracking the response and effectiveness of a campaign, the
marketer can be far more dynamic in adapting to consumers’ wants
and needs. With eMarketing, responses can be analysed in real-
time and campaigns can be tweaked continuously. Combined with
the immediacy of the Internet as a medium, this means that there’s
minimal advertising spend wasted on less than effective campaigns.
Maximum marketing efficiency from eMarketing creates new
opportunities to seize strategic competitive advantages.The
combination of all these factors results in an improved ROI and
ultimately, more customers, happier customers and an improved
bottom line.
 E-SHARE TRADING

Online share trading: The next big thing online

India is a traditional society. Indian's are more conventional in nature.
When it comes to technology we are far behind than rest of the world.
Although we are having tradition for centuries we are enjoying
freedom only for 62 years. Thanks to our white skin masters for
imparting education upon us. Our culture is unique and we celebrate
unity in diversity. We are forerunners among developing countries.
India is a major player in the region economically we are more fit
(thanks to the visionaries who had marched ahead). We are a thick
populated society. India also holds a a unique stature in the world
which is we are the youngest country in the world. Half of our
population is in between the bracket 18-23. Which means we have
huge potential in terms of everything.

Some online statistics

Online world is another world for everyone. As they showed us in
matrix we will be confused which one is real. Internet offers so many
facilities to it's users, we must congratulate bill gates and company for
offering such a splendid facility to the mankind (or should we thank
someone else). There may be difference of opinions but one thing is
sure that once online world will become more prominent than the real
world (will all of us become machines speaking only 1&0, I simply
can't imagine. Only 2 years before the internet using population in the
world crossed 1 billion mark (oh my god 100 crores). Which simply
means one in every six of world's population is clicking and the
number is going up drastically. In India, the traditional and
conventional, 50 million people uses internet and it grows like
anything. By 2012 the number will be 81.3 million. (of course even
more). Indian union also taken steps to encourage students to be
online, internet education is part of curriculum in almost all the states.
At least all of our people even heard about internet which is a big plus
in this regard.

Are you bull or bear

Now a days everyone (most probably) is aware about bull and bear, at
least they can identify these terms as cliches related to stock market.
More and more people in India, especially young people, are turning
towards stock exchanges for investment. But statistics says that of it's
massive population only less than 10 percent is involved in any kind of
investment and who are investing in capital market the percentage is
below 2. The capital market investment population in India is less than
2 crore. It seems more and more literacy is needed in this avenue of
investment.
The stock market investment crowd is concentrated in the upper class
and upper middle class pie of the society. (Oh I heard someone saying
to include the middle class-OK agreed). The rest 113 crore of the
people may or may not invest but they do not invest in stock markets
as of now, but in the future we will be forced to redraw the picture.

Online share trading

During the early years of 90s National Stock Exchange of India started
trading using v-sat connections. Those days which was a revolutionary
change and was referred as online trading. (now also some
misunderstands online trading with internet trading).In late 90 internet
became popular in India and when 20 century became past internet
use in India increased at it's maximum pace.
With the emergence of new generation jobs people looked for new
venues for investing and stock markets came first in the list. In 2004
when UPA government came into power stock market in india gained
more popularity and lot of confidence had been imposed on it. During
all these days ans now also offline share trading is the house full show.
The traditional way of trading by visiting the branch, calling a call
centre executive etc is called offline trading in which you need a
persons assistance. Online trading (internet trading now refers)
removed the second person before the screen and you and the system
became the characters. This is the easiness that have been provided to
the customer. If your bank also provides online facility you will be
more relieved man. You don't want to step into a brokers office for
anything everthing you want to do you can do at your home/office in
your PC with internet connection.
Within just three years online trading in NSE increased an unbelievable
13 percent. With in 3 years it is believed that the number of internet
using facility will be double. On an average 34 percent of booking in
railway is done through internet and 80 percent of airline booking have
also gone online (online masthi isn't it). Reliance money, ICICI Direct,
India Infoline, Geojit BNP Paribas, Sharekhan, Kotak Securities are the
major brokers who are offering online trading facility to their clients.
Some are offering online trading facility only otherwise customer have
to call the call centre where as some otheres are offering both online
and offline trading facilities.
High speed execution, greater flexibility and control are the main
advantages of online trading. The brokerage charges are less in online
compared to offline trading. Customer can place orders even after the
trading hours is another advantage of online trading. Real time
tracking of stock prices is another advantage (you can easily skip the
time delay in online trading-time means money honey)
Disadvantages:
The band width menace is the main menace considering online trading
(it is believed that which will be solved when we enter 3G).When some
big happenings in the stock market the brokers server will be down
and the beloved customer will be at sea, staring at the monitor. The
customer needs specific browsers and web configurations to view all
the facilities provided by the broker like charts etc. If the customer is
net savy he can deal online trading smoothly otherwise there will be
no first aids from the broker.
In this fast forward life online share trading is the need of the hour.
The internet using community will increase day by day. Online share
trading is aiming a long innings for sure (at least it is a cost effective
method for the broker also-no need to pay an employee). When
mobile and internet convergence take place things will drastically
change. Mobile share trading will function full fledgly with in years.
Convergence of technology only means advantage to the customer.