What are the different types of internet banking?

Informational Internet Banking includes information on various products and services offered by banks. Communicative Internet Banking allows you to perform simple transactions like applying for loans, checking balances, etc. Transactional Internet Banking enables you to transfer funds and make payments.

What are the three types of banking?

Banks, Thrifts, and Credit Unions - What's the Difference? There are three major types of depository institutions in the United States. They are commercial banks, thrifts (which include savings and loan associations and savings banks) and credit unions .

What is online banking also known as 2 answers?

Online banking is also known as internet banking or web banking .

What is online internet banking?

Online banking, also known as internet banking, virtual banking, web banking or home banking, is a system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website or mobile app .

How many types of banking are there?

Classification of Banks in India Commercial Banks can be further classified into public sector banks, private sector banks, foreign banks and Regional Rural Banks (RRB) . On the other hand, cooperative banks are classified into urban and rural. Apart from these, a fairly new addition to the structure is a payments bank.

What's the difference between online banking and internet banking?

Internet banking is known by a variety of other names such as web banking, net banking, and online banking, which primarily revolve around front-end customer transactions done using internet browser on desktop and mobile devices and on mobile apps.

What is the most common type of banking?

A checking account is the most common type of bank account. It allows a customer to deposit and withdraw money as needed.

What are the 4 types of banks?

The 4 different types of banks are Central Bank, Commercial Bank, Cooperative Banks, Regional Rural Banks . You can read about the Types of Banks in India – Category and Functions of Banks in India in the given link.

What is the most common form of banking?

A basic checking account is generally the most common option you'll find. With a basic checking account, you may be able to spend using a debit card, pay bills online or via paper check and transfer funds to or from linked accounts.

What is an example of internet banking?

Internet Banking: Customers who use internet banking can access their bank accounts, check balances, look into transaction history, transfer funds, pay bills and carry out other financial tasks over a secure internet connection .

Is internet banking digital banking?

As handy as it might be, online banking is just one part of what we call “digital banking services.” Up next, let's look at the wider suite of tools and services that make up digital banking.

What are the most common services available on internet banking?

Through secure portals on a bank's website or app, customers can execute a wide range of financial transactions online. For example, some of the standard features of online banking include local and international funds transfers, bill payments, and cheque depositions.

what-are-the-types-of-internet-banking (2024)

Table of Content

Importance of Internet Banking
Types of Internet Banking Facilities in India
- Informational Internet Banking
- Communicative Online Banking
- Transactional Internet Banking
Wrapping Up

The arrival of internet banking has transformed the way one manages their finances. It has revolutionized the banking sector. Customers can now access their bank accounts from the comfort of their homes or offices.

Over time, consumer preferences have also changed. The rapidly changing technology and evolving consumer preferences have led to increased competition among financial institutions.

Internet banking is also known as online banking or e-banking. It only requires an active internet connection and a laptop or smartphone for use. Customers use this service to view their account balance and transaction history. They can also transfer funds, pay bills and apply for loans or credit cards online with e-banking.

Importance of Internet Banking

•Convenience

e-Banking provides 24x7 access to bank accounts from anywhere.

•Time saving

It eliminates the need for customers to stand in long queues. This saves time.

•Cost effectiveness

Customers do not have to pay for stamps or other fees associated with visiting bank branches.

•Informed decision

It lets customers compare interest rates, fees and services provided by various banks.

•Security

It uses advanced encryption technology to protect customer information and prevent fraud. Banks invest heavily in cybersecurity measures to ensure that customers' information is safe.

•Innovation

Banks now offer features such as digital wallets, real-time payment systems, etc.

Types of Internet Banking Facilities in India -

Informational Internet Banking

This type of e-banking service is the basic level of internet banking. This provides access to all the general information of the bank through a website. This includes details about the bank's products and services like accounts, deposits and loans available to different customers. It provides details about the features of the products, benefits, eligibility criteria and how to apply for them. It also has information about the bank branches and ATM locations. If there is any other information required, then you can reach the bank via email.

Communicative Online Banking

The next kind of e-banking is intermediary, where the information exchange between the bank and customers takes place through a virtual chatbot. Unlike the basic level, where the customer has to await a response to the email, this information exchange is instant.

The customer can place enquiries about minimum account balances, types of fund transfers and applying for services like loans facility or cards. Virtual chatbots answer all the basic questions, like the types of loans or cards, the interest rate, and the charges. It then directs the customer to the customer care department to process the loan / card application, or answer complex queries.

Transactional Internet Banking

The last category of net banking type is advanced internet banking. Customers are more accustomed to this type of e-banking. This advanced level is where a customer with a valid login and password can use internet banking for transactions. All services like fund transfers, utility bill payments, creating deposits, credit card bill payments, EMI payments, and investing in marketable securities can be done through the bank's net banking portal.

Transactional internet banking has organized fund transfers in India by providing the following facilities:

National Electronic Fund Transfer (NEFT)
Real Time Gross Settlement (RTGS)
Immediate Payment Service (IMPS)

Instant fund transfer is the prime feature of all these transfer methods. The minimum and maximum transaction limits for each type vary from account to account and bank to bank.

Wrapping Up

Internet Banking is when customers of a bank can get information, answers to queries and transact virtually through the bank's website. It eliminates the need to visit the bank branch and saves time for the customer.

For banks, this means that many processes can be automated, leading to less labor-intensive requirements. The types of internet banking are classified by the RBI basis the level of interaction between the customer and the bank.