Online banking allows customers of bank to connect with their bank by using computer and internet. Internet banking and e- banking are other terms usually used for online banking. People by using secured website can conduct all their banking functions like financial transactions and virtual banking. This helps to reduce banks operational and setup cost. Online banking service is provided to the customers who are registered with bank for this facility. Only people who can operation computer are able to use online transaction facilities.
Initiation of online banking
As population using internet is very high there is a huge requirement of online banking facility. Foreign banks set up their branches in India in year 1991. As they came here they brought their technology of online transaction with them. As competition in banking industry was high, online banking became a new feature to attract more and more customers.
Services offered by online banking
Online banking is beneficial for bankers as it reduce load on the staff and focus on branchless banking. Basic facilities which customers can get via online banking are
Why people use online banking
Online banking is very convenient form of banking in which users can operate all their banking facilities from anywhere. Online banking is not time bound so people can use it any time whether it is day or night.
Banks are providing high security to their customers still there are some issues are associated with use of online banking. Protection of customers information from unauthorized access is most important. Secure websites and various password protection strategies are used by banks to reduce risk of frauds.
In spite of having some disadvantages online banking is still a very growing and convenient banking. As people are becoming more and more tech-friendly these days, e banking is provided as necessary facility in all banks to offer full time access of bank accounts.