How Does Net Banking Function in India?
Net banking also addressed as e-banking, online banking or digital banking is a facility offered by financial institutions, which permits you to use bank services using the internet. There are various scores of services available in the market like account opening, online money transfer, tracking account activity, bill payment, etc., which are made available with the assistance of net banking to you as a customer.
Online banking permits banks to promote as well as advertise their services and products in a way that reaches millions of customers. However, to use online banking, you as an individual must have access to an internet network, which is scarcely available in the rural region. Net banking even can be accessed through mobile devices with a data connection. By accessing net banking, you may not just easily transfer your funds to another account but also access your statements. For instance, suppose you have an account with Yes bank, so to access your mini statement, you can either fetch this from your email and unlock your statement by inputting the passcode, or get it through your Yes bank net banking account. In your mini statement, you will find your Yes bank mini statement number with details linked with your transactions using your Yes bank account. The same, is the case with IndusInd bank, to conduct any of your banking activities, you do not require visiting the bank branch as per the IndusInd bank timings. You can conduct your activities linked with banking using your IndusInd net banking.
What’s the scope of an online banking service?
With the assistance of online banking, you can meet your various indispensable services, without the need to personally visit the bank. You can conduct your financial transactions like paying the bills, transferring funds online, applying for loans, opening current and savings bank accounts, etc. Under non-financial transactions, you can conduct various activities, which might need you to visit the bank such as updating your passbook, depositing a cheque, depositing cash into your bank account, etc.
Net banking vs e-wallets
Digital payments have witnessed a massive surge ever since demonetization. An increasing number of people have understood the convenience of making payments digitally. As part of the cashless economy, net banking and mobile wallets have played a crucial role.
What is an e-wallet?
An E-wallet or mobile wallet is a virtual wallet wherein you can park the funds, which you want to use without the requirement of swiping any credit card or debit card. This is one of the quickest transaction modes and does not need a minimum deposit. With e-wallets, you can make purchases of anything ranging between flight tickets and groceries. You can download the e-wallet using your phone through the app store.
How can you use an e-wallet?
The most basic e-wallet needs are a smartphone and an active net connection. You must fill out the basic details like your name and your mobile number to sign up for the e-wallet. After registering, you can log in to transfer money using the net banking account or via your credit card or debit card into your wallet. As per RBI’s current notification, an amount of up to Rs 20,000 can be included in your e-wallet.
Net banking –
Most online payments are conducted through the net banking route. It has become a convenient payment route for transferring your funds. Most banks have formed their own applications that you can easily download on your phone and use at any time for conducting your banking activities. Using mobile devices, you can make your transactions using your mobile application, net fund transfer services, net banking services through mediums like IMPS or immediate payment services, RTGS or real-time gross settlement, and NEFT or national electronic fund transfer.
Internet banking vs. e-wallets
While both are viewed as digital payment platforms, both are different in some way. Read on to know the difference –
|Features||Internet banking||Mobile wallets or e-wallets|
|Transaction limit||As much as the balance in the account||Rs 1 lakh|
|Usage or annual charges||Zero usage fees except for the fund transfers||Zero usage fees Bank withdrawal fees are applicable|
|Usability||Only online||Offline and online|
|Rewards or offers||None||Provides discounts and cashback periodically|
|Protection from fraud||Highly secure||Low to medium|
What are the benefits of net banking available to you?
In an age where all of you are dependent heavily on technology, net banking is nothing but a savior to you. Read on to know –
Simple to operate – Net banking is easy to operate, simple to understand, and easier to use as compared to traditional banking methods.
- The convenience of making the payment – Internet banking makes it simple and convenient to conduct your transactional activities like fund transfers, bill payments, etc. It means you now no longer require standing in long queues for the payment of the bill or being required to safely keep the bill payment receipts, which are even perishable. All the payment records and bills are stored online.
- Availability 24 X 7 – Another significant benefit of online banking is it available to you 24 X 7. You do not require scheduling a time for conducting your banking tasks; whether it is a weekend or a bank holiday, you can conduct your banking transaction efficiently using the net banking route.
- Time-saving – Net banking is quick but highly efficient, allowing you to conduct your banking transactions in a few minutes. Fund transfers, account opening, bill payments – all of it takes no more than just a few minutes to process, which allows for saving plenty of time.
- Account tracking activity – The last crucial benefit of net banking is that it enables you to track your banking activities quickly and continuously. You can always keep a close watch on your account details. Any discrepancy or unauthorized transaction can be instantly tracked and reported to the concerned financial institution instantly, permitting you to keep your parked funds safe all the time.
So, you see, whether it is IndusInd Bank, HDFC Bank, or Axis Bank, you do not require visiting as per the IndusInd Bank timings, HDFC Bank timings, or Axis bank timings, respectively, to perform most of your banking activities. You can perform the banking activities by logging into the concerned financial institution’s net banking platform.