One of the biggest changes after the introduction of the internet was the use of websites to conduct transactions. Data that used to be stored and used offline now was made available online and this transformed many different sectors including banking. The banking sector has undergone a rapid transformation because of the internet and the introduction of internet banking.
Internet banking is the use of the bank’s website and net banking portal to avail different services. This is a type of distance banking where the customer does not have to deal with a teller and a bank branch. The use of net banking to do transactions and avail of banking services has only undergone an increase with the passage of time.
Online internet banking is much more popular as compared to traditional banking along with having several advantages over its traditional brother.
Here are the benefits of internet banking:
Convenience: Using online net banking is extremely convenient for a bank account holder. There is no need to go to the bank to conduct different transactions when it can easily be done from a laptop or personal computer using an internet connection.
Mobile Banking: With the advent of smartphones, it is now not necessary to use internet banking using a personal computer and an internet connection. Most banks have their own mobile banking apps which help a customer access their bank account at any time. It doesn’t provide all the functionalities of online internet banking but is a very handy application to have.
Fund Transfers: There is now no need to use cheques or demand drafts to make payments. Using internet banking, it is possible to make fund transfers to any recipient with a bank account. There are two modes of fund transfer that can be used with online net banking and three modes which can be used in mobile banking. National Electronic Fund Transfer or NEFT is one of the most popular ways to make a fund transfer. Real Time Gross Settlement or RTGS is a type of instant fund transfer for high value transactions. RTGS and NEFT can both be used in mobile banking but apart from that there is Immediate Payment Services or IMPS which is a 24×7 service available for instant transfers. The ease of these modes of transfer makes them a much more convenient.
Availability: Bank branches are open only for a specified period of time. However, with net banking, you can access certain services at any point of time. You can make fund transfers anytime and they will get cleared once the bank is open. You can check your balance and your bank statement at any time and even open a fixed deposit after banking hours and the bank’s servers will process it.
Services Offered: Online net banking offers a wide range of services such as balance checks, download and access historical account statement, submission of Form 15G/15H, view cheque status, fixed deposit summary, recurring deposit summary etc. This wide range of services makes it very convenient for the customer.
Income Tax: It is possible to now use internet banking to e-verify income tax returns. This saves a lot of hassle and makes it very easy for people who use online net banking to verify their returns. It is also possible to use internet banking to pay income tax online.
E-commerce: One of the biggest benefits of net banking is its use as a mode of payment on e-commerce websites. There’s no need to bother with using other modes like cash on delivery when you can use internet banking to pay for whatever you need.
Security: Another benefit of using internet banking is the security aspect of it. Most banks have designed certain security measures in the internet banking system so that the system logs you out if it is idle for a certain amount of time. There is a system of asking the secret questions or a one time password if the transactions are not regular for the account.
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