About Online Banking Services
The rise of the smartphones and Internet have changed our life. Thanks to technological advancement, things have become relatively easy. For instance, one can book groceries via online banking services with just a few clicks.
About Online Banking Services
Internet banking or web banking are other names for online banking. Online banking services include transferring money, deposits and online bill payments.
We are aware that we can conduct online banking on computers or mobile devices. Online banking services include transferring funds and paying bills electronically.
With online banking services, we don’t need to go to the bank physically for basic banking transactions. We can pay our bills or transfer money anytime and anywhere. Suppose, you’re going to drop your child at his/her school. On the way to school, you can pay your electricity bills.
With banks, online banking services vary. Most banks permit you to apply for credit cards through online banking portals. However, most banks enable essential services like the transfer of money and bill payments.
Modes to avail Online Banking Services
Online banking services is a broad term and it includes many things.
You need to use an ATM Card on a specific platform or app to make purchases/ transactions. For this, you don’t need a hard form of an ATM Card, you just need the information printed on it such as the card and CVV numbers.
Suppose, you are ordering something from Myntra. To make online payments directly with the bank, you need your ATM card number and CVV number. This medium is the best way to avail online banking services easily.
UPI is another system which you can do to pay online. UPI stands for Unified Payments Interface. One can simply purchase the order from a nearby store or pay transportation expenses easily like autorickshaw fares, etc.
Net banking is also a part of online banking services. It is an electronic system. If you have a bank account, you can activate net banking. One can purchase their favourites from any leading platform using net banking.
Why should you go for Online Banking Services?
You can access your online account from wherever you want. Well, this is different from a traditional bank. The banking facilities in online mode are available 24×7, irrespective of any bank holidays, national holidays, etc.
The safety of the customer’s account is also a priority in the online banking system. It provides the most secure environment for money transferring.
It is recommended to not use public WiFi to avoid any kind of fraud or cyber-attack.
Online banking is easier and more convenient than offline banks. You don’t have to stand in queues for your needs.
Types of Online Banking Services
Online banking is categorized into two parts. They are
1. Remote/Online Payment Transaction
Online transactions don’t require physical payment instruments to be presented at the time of payment. Some examples of remote income are mobile banking, internet banking, and pre-paid instrument.
2. Face-to-face/ Proximity Payment Transactions
Those payments require a physical payment instrument like a card or mobile phone to be available at the point of the transaction. It includes ATMs, POS, etc.
Some other types of online banking services are:
National Electronic Fund Transfer (NEFT)
NEFT stands for National Electronic Funds Transfer. NEFT is a nationwide payment system for one-to-one fund transfers. This scheme made the money-transferring process easy within the country. You can transfer money to an individual from any bank branch.
At NEFT, walk-in customers can also deposit cash. In such cases, the remittances will be restricted to a maximum of ₹ 50, 000 per transaction.
Real Time Gross Settlement (RTGS)
The other name for RTGS is Real Time Gross Settlement. RTGS is a fund transfer system that allows money transfers within a minute. It is generally for large-value interbank fund transfers. Real-time gross settlement can reduce the time that crucial information is exposed, reducing risks.
Electronic Clearing System (ECS)
With ECS, you can easily clear your telephone or electricity bills. It helps in the bulk transfer of money from one bank account to many bank accounts or vice-versa.
Immediate Payment Service (IMPS)
This is a very safe and economical way of transferring money. It is an emphatic service which allows sharing of funds instantly within banks across the country. It offers 24×7 bank facilities.
The Benefit of Online Banking Services
Unlike offline banks, online banks don’t spend money on the maintenance of the branch. Hence, online bankings system have low fees.
Better Interest Rates
In the online account, deposits have better annual percentage yields. The larger the balance the more the percentage. For earning interest, you can go for online cash management accounts. These financial products are offered by non-bank service providers and thus have good yields.
Online banking offers us a lot of services. For transactions, you do not need to visit a bank. You can access your account at any time from anywhere in the globe. But, in a few cases, we need to go to the bank. Loan and credit applications are examples of it.