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E – Banking.pptx

  1. E – BANKING M. Narayanan Post Graduate and Research Department of Commerce Vivekananda College, Tiruvedakam West, Madurai – 625234.
  2. MEANING E – Banking is a method of banking in which the customer conducts transactions electronically via the internet. It is an umbrella term for the banking process by which a customer may perform banking transactions electronically without visiting a branch of bank. E - Banking implies performing basic banking transactions by customers round clock globally through electronic media. Virtual banking denotes the provision of banking and other related services through the extensive use of Information technology, without direct recourse to the bank by customers.
  3. FEATURES AND TYPES OF VIRTUAL BANKING The overwhelming reliance on information technology The absence of physical bank branches to deliver banking services to the customers. Types  Virtual banking services includes the Automated Teller Machine (ATM)  Shared ATM networks  Electronic Fund Transfer at point of sale (EFTPoS)  Smart cards  Stored Value cards  Phone banking  Home banking  Internet banking  Intranet banking
  4. TRADITIONAL BANKING Vs E – BANKING Basis of Difference Traditional Banking Internet Banking Meaning In this relationship between bank and Customer establishes through branch network. It refers to banking on internet Presence Banks exist physically for serving the customers, Internet banks do not have physical presence as services are provided online. Time It consumes a lot of time as customers have to visit banks to carry out bank transactions like — checking bank balances, transferring money from one account to another. It does not consume time as customers do not have to visit banks to check bank balances or to transfer money from one account to another. Customers can access their account readily from anywhere with a computer and internet access. Accessibility People have to visit banks only during the working hours. Internet banking is available at any time and it provides 24 hours access. Security Traditional banking does not encounter e-security threats. Online banking is the tempting target for hackers. Security is one of the problems faced by customers in accessing accounts through internet. Finance Control Customers who often travel abroad cannot pay close attention and control of their finances. Customers who often travel abroad can have greater control over their finances. Expensive Customers have to spend money for visiting banks. Customers do not have to spend money for visiting banks. They can avoid bank charges that may be charged for certain teller transactions or when they pay bills electronically — directly from their account to the merchant. It helps to save money on postal charges. Cost The cost incurred by traditional banks includes a lot of operating and fixed costs. Such costs are eliminated as the banks do not have physical presence. Customer Service ln traditional banks, the employees and clerical staff of the bank can attend only few customers at a time. In online banking, the customers do not have to stand in queues to carry out certain bank transactions. Contact Customers can have face to face contact in traditional Customers can have only electronic contacts.
  5. ELECTRONIC DELIVERY CHANNELS E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking means electronic banking, whenever bank serving their customer through electronically and when receipts and payments and other banking transactions can make through computer network it’s called e-banking.  ATMs  Smart Cards  Telebanking  Internet banking
  6. 1. ATM (Automated Teller Machine)  These machines are available at bank and public places. Banks issues their customer ATM cards as per request. ATM holders use this card for quick money any time means 24 hours and 365 days. Through this machine, card holder can deposit limited amount. Card holder can use this card in another bank ATM. Some bank charge nominal fee per transaction  ATM is a computerized telecommunications device that provides a financial institution’s customers a method of financial transactions in a public space without the need for a human clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are providing a wider range of services to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank’s account by feeding in the notes and entering the account number to be credited. Also, most ATMs enable card holders from other banks to get their account balance and withdraw cash, even if the card is issued by a foreign bank
  7. FEATURES OF ATM The modern ATMs are very versatile. It not only allows you to withdraw cash but it also allows depositing money, transferring money, payment of several bills, generation of statements and many more. ATMs are very user-friendly machines. Anyone can use it whether they are educated or are a specially-abled person. It has become easy with the introduction of the biometric identification scanner. ATMs are multilingual devices. India is a country with different types of people speaking different languages. So, the machine being multilingual is very helpful as everybody can use it in their own preferred language. ATMs have now started providing receipts via email, which eliminates the use of paper.
  8. ATM LABELS The ATM deposit machine can be categorized into a few labels. These labels distinguish the different uses of an ATM. Green Label ATMs are used for agricultural purposes. Yellow Label ATMs are used for e-commerce transactions. Orange Label ATMs are used for share transactions. Pink Label ATMs are designed for females to help them eliminate the long queues and waiting time. As introduced by the TATA group, White Label ATMs are owned by non- bank entities, not a particular bank. Brown Label Banks are operated by a third party other than a bank.
  9. ADVANTAGES OF ATMS  Convenience  24x7 Service  Takes the Edge Off the Bank  Accessibility  Saviour in Crisis
  10. 2. SMART CARD The smart card is all about changing a tiny rectangular piece of card in to ‘smart’. These cards are so convenient to be fitted in our wallets or back pockets. This is where the foremost advantage of smart card can be seen. These cards are used by banks, shops, educational institutions, offices etc. to carry out different transaction purposes. Though these cards are available in different sizes and forms, they all serve the same purpose i.e., the technology that drives them. Smart card have enabled the security and convenience of any transactions. The technology used behind help users to store unique personal details
  11. 3. PREPAID PAYMENT INSTRUMENTS (PPIs) RBI as per the guidelines provided under the Payment and Settlement Act, 2005 defined Prepaid Payment Instruments (PPIs) as instruments of payment that facilitate buying of goods and services, including the transfer of funds, financial service and remittances, against the value stored within or on the instrument. The value stored in the instrument is represented by the value that has already been paid for by the holder or the instrument by any method such as, by cash, by debit from a bank account, credit card or even from other PPIs. PPIs can come in the form of payment wallets, smart cards, magnetic chips, vouchers, mobile wallets etc. any instrument that can be used to access a prepaid amount is a PPI.
  12. 4. TELE BANKING Telephone banking is a service provided by a bank or other financial institution, that enables customers to perform financial transactions over the telephone, without the need to visit a bank branch or automated teller machine. Telephone banking times can be longer than branch opening times, and some financial institutions offer the service on a 24 hour basis. From the bank’s point of view, telephone banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions.