E Banking Electronic Banking - Definition, What is E Banking Electronic Banking, Advantages of E Banking Electronic Banking, and Latest News - ClearTax (2024)

FAQs

E Banking Electronic Banking - Definition, What is E Banking Electronic Banking, Advantages of E Banking Electronic Banking, and Latest News - ClearTax? ›

Electronic Banking is more commonly referred to as internet banking or simply netbanking. It is an electronic payment system supported by a website that offers an array of products and services of any bank that is possible to work electronically, like payments, transfers, deposits and more.

(i) E-banking provides 24 hours, 365 days a year services to the customers of the bank. (ii) It lowers the transaction cost. (iii) It inculcates a sense of financial discipline and promotes transparency. (iv) It reduces the load on bank branches.

Electronic banking is also known as Online banking, virtual banking. E banking refers to electronic payment system that enables a customer to conduct certain banking activities and transaction through internet via a the financial institute's website.

E-banking is an arrangement between a bank or a financial institution and its customers that enables encrypted transactions over the internet. Short for electronic banking, E-banking has various types that cater to customers' different requirements, which can be resolved online.

An eBank is an online banking service that is hosted solely online. There are no physical banking premises for the bank. You can only access your funds using desktop and mobile devices. Usually, you use a mobile app to manage your accounts.

One of the key benefits with online banking means you can pay all your bills or make payments through your bank's website. You can set up direct debits, standing orders, and even send money to friends and family members. It doesn't get more convenient than that.

The lack of overhead gives internet banks advantages over traditional banks, including fewer or lower fees and accounts with higher APYs. Internet banks lack personal relationships, no proprietary ATMs, and more limited services.

It offers convenience, accessibility, security, and a range of services such as bill payments, account management, and online transactions. With online banking, customers can monitor their finances in real-time and easily track their spending habits.

If you prefer to speak to someone in person, or you tend to make cash deposits, then a high street branch may be more attractive than online banking. But for the vast majority, online banking wins hands down. This is due to several major benefits, which fall into two main groups: time benefits and money benefits.

E‐Banking is also known as Net banking. Electronic banking has many names like e-banking, virtual banking, online banking, or internet banking.

How safe is electronic banking? ›

If they're FDIC-insured, online banks are as safe as traditional brick-and-mortar banks in many ways. You can also take steps as a consumer to ensure your account is as protected as possible when banking online, whether you bank with a brick-and-mortar or an online bank, also called a direct or digital bank.

The guidance defines high-risk transactions as those that allow the transfer of funds to third parties or provide access to nonpublic personal information. For example, bill pay, a common Internet banking product, allows funds to be transferred to third party payees. This is considered a high-risk transaction.

(i) 24×7 availability: e-banking is available round the clock and throughout the year. A customer can access his or her own bank account and conduct banking transactions online at any time. This provides greater flexibility and a high degree of comfort to bank customers as they need not to visit their banks in person.

The biggest risk of online banks is that someone will access your savings or checking account and steal your information and money. This typically happens when your account is hacked by cybercriminals who get your username and password. However, these risks are not limited to banks that operate exclusively online.

E-banking has limitations including security and privacy issues when conducting online transactions. It also has high infrastructure costs to implement online and backend banking services.

By reducing the need for paper transactions, digital banking is also reducing the amount of ink and energy used. Another advantage of digital banking is the ease of access to digital statements.

E- Banking has also helped greatly for the payment of utility bill now customers do not need to stand in long queues outside banks for this purpose. Banking services are available 24 hours a day, seven days a week. Customers easily access their accounts through internet by sitting at home or office.

E- Banking Practices

E-Banking provides the facility of marketing of products/ schemes online easily. Traditional Practices involves process which requires more time. E-Banking same lot of line as there is no need to stand in long queues.