all about online banking

1. ONLINE BANKING
Presented by : rajendra arekar
email id : raju261196@gmail.com

2. INTRODUCTION
• Online banking is also known as internet
banking, e-banking , or virtual banking.
• It is an electronic payment system that enables
customers of a bank to conduct a range of
financial transactions.
• The online banking will typically connect or be a
part of the core banking system which is in
contrast to branch banking.

3. HISTORY
• Online banking was first introduced in the early
1980’s in NEW YORK , UNITED STATES.
• Four major banks – Citi bank , Chase bank ,
Chemical bank , and Manufacturers hanover offered
home banking services.
• Chemical bank introduced its pronto services for
individuals and small businesses in 1983 which
enabled individuals to maintain electronic
checkbook registers.

4. Difference between online and traditional
banking
• Online banking
1. It is faster than traditional
banking.
2. It is inexpensive.
3. It is a time saving process.
4. Records can be maintained
for a long time.
5. Transactions can be secured
properly.
• Traditional banking
1. It is comparatively slower.
2. It involves paper expenses.
3. It is a time consuming
process.
4. Records can be torn as they
are on paper.
5. There is lack of security in
such cases , and even records
an be misplaced.

5. FEATURES
• The key features are as follows:
1. Balance and transaction history search
2. Transaction history export
3. E statements and statement preferences
4. Order new statements

6. 5. Mobile banking
6. Transfers
7. Pay bills with bpay
8. Receive bills online with BPAY View

7. VARIOUS FORMS OF E- BANKING
 Automated teller machine
Tele banking
Smart card
Debit card
 E- cheque
 Direct deposit
 Electronic bill payment

8. procedure
Online banking investigates the entry threshold for
providing a new transaction service channel for the
use of normal users , Organizations and
Academicians.
• Customer must have a valid user id and password
to login to the system.
• If a wrong password is given in succession , that
account will be locked and the customer will not
be able to use it.

9. • After the valid user logs in he is shown the list of
accounts he has with the bank.
• On selecting the desired account he is taken to a
page which shows the present balance in that
particular account number.
• User can request for the details of the last ‘n’
number of transactions that he has performed.

10. ADVANTAGES OF ONLINE BANKING
 There are some advantages on using e – banking
both for banks and customers:
Permanent access to the bank
Lower transaction costs/ general cost reductions
Access anywhere using mobile or computer
Less time consuming

11. Very safe and secure method
Helps to transfer the money immediately and
accurately
Easy to use
Better interest rate on cd’s and savings account
opened online

12. DISADVANTAGES OF ONLINE
BANKING
 The disadvantages of online banking are as
follows:
 Limited access
Difficulty in resolving disputes
 Security concerns

13. Identity confirmation
 Customer service
Banks not having atms will have to pay atm fees
Other threats

14. ATTACKS and risks
• Attacks on online banking used today are based
on deceiving the user to steal login data and
valid TAN’s.
• Two well known examples are PHISHING and
PHARMING.
• A method to attack signature based banking
methods is to show correct transactions on the
screen and fake transactions in the background.

15. • There is also a risk of increasing number of
fraudulent websites.
• Along with this fake emails purporting to be sent
from banks is on rise.
• These all risk possibilities lead to the online
banking procedure less reliable.

16. COUNTERMEASURES
There exists several countermeasures which try to
avoid attacks.
1. DIGITAL CERTIFICATES are used against
phishing and pharming.
2. “Secoder” card readers is a measurement to
uncover the software side manipulations of the
transaction data.
3. To protect their system from trojan horses ,
users should use virus scanners.

17. ONLINE BANKING IN INDIA
• India is still in the early stages of E- banking
growth and development.
• Competition and changes in technology and
lifestyle have changed the face of banking.
• E- banking is likely to bring a host of
opportunities as well as unprecedented risks to
the nature of banking in India .
• E –banking in India is not yet apparent .

18. • Many research companies believe that E -banking in
India would be slow compared to the other Asian
countries.
• E- banking is still nascent , although it is becoming a
fast strategic necessity for most commercial banks.
• The Reserve Bank of India has also set up a
“Working Group on E-banking to examine different
aspects of E- banking .
• According to a report by the Boston Consulting
Group in collaboration with FICCI and the Indian
Banks’ Association (IBA), India has around 470
million banking customers. Among this
demographic, 60 million of them, amounting to 13%
of the total users, use online banking

19. CONCLUSION
• The strategy of bank is to provide value
added services and products to the consumer,
utilizing the internet extensively.
• The main aim o E-Banking or Online
Banking is to make transactions through
online processes and provide customers with
more benefits.
• Providing internet banking is increasingly
becoming a “need to have” than “nice to
have” services.

20. REFERENCE/LINKS
 Wikipedia
 UK essays
 E- Commerce and E- Business (book)