Electronic Banking Services


 Electronic Banking Services/E-Banking


With the introduction of computer and Internet, a novelty has crept into the working of the banks. With the help of computer and Internet in the functioning of the banks is called electronic banking. Because of these services the customers do not need to go to the bank every time as it has made transactions with the Possible at any time and from any Place.
The chief electronic services are the following:

(1) Electronic Fund Transfer (EFT): Under this system, money can be transferred from one account to another account. The following are the chief examples of the direct crediting and debiting:

(a) Direct Credits: Direct credits include all the dividend on shares, interest on debentures, commission, salary, and pension, etc.

(b) Direct Debits:  Direct debits mostly includes telephone and electricity bills, installment of loans, insurance installment, club membership fee, credit card dues, etc.
The following are the advantages of the Electronic Fund Transfer:

(i) Payment on the due date
(ii) No loss in transit
(iii) No mishandling of cash
(iv) Effortless transactions
(v)  No expenses on correspondence.


(2) Automated Teller Machine (ATM): ATM is an automatic machine with the help of which money can be withdrawn or deposited by inserting the card and entering your Personal Identification Number (PIN). These machines operate for all the 24 hours. This has reduced the work of an employee (teller) by more than half. The ATM is getting popular every day.



(3) Debit Card: A Debit Card is issued to a customer instead of his money deposited in the bank. The customer can make the payment of goods and services obtained based on his debit card provided the terminal facility is available with the seller instantly. Through this medium, the money is transferred from the account of the purchaser to the account of the seller. With the help of the debit card money can also be withdrawn from the ATM.

(4) Credit Card: A bank issues a credit card to those of its customers who enjoy a good reputation. It is not necessary that a customer should have money in the bank to get a credit card. This is a sort of overdraft facility. The name of the issuing bank, the name of the holder and his/her identity along with the date of validity are inscribed on the credit card. the credit card holder keeps on depositing the money used according to the agreement with the bank.




(5) Tele-Banking: Under this facility, a customer can get information about the balance in his account or information about the latest transactions on the telephone. This facility is available round the clock. 

(6) Core Banking: Core Banking Solution is the best banking system that makes banking convenient by changing the status of the customer from "customer of a branch" to "customer of the bank" and allows fastly and profitable banking everywhere in the world and at all times. Facilities provided to a CBS customer:
(i) Cash withdrawal facility from any of the CBS branches in the world.
(ii) Instant transfer of funds from one account to another.
(iii) Passbook can be updated across the branches under CBS at anywhere.

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