April 26, 2023

What is Net Banking?

Technology is the game changer, the disruptive and transformational force to reckon with across all industries.
Pushing the envelope of traditional banking channels, internet or net banking is increasingly becoming popular among retail and domestic customers who have been swept by the swift, seamless, secure, flexible and adaptable digital product and service offerings through faceless, paperless transaction (cheques, demand drafts, passbook, pay-in-slips) and cashless transactions ( ATM, debit card, IMPS, NEFT, RTGS etc)by banks across India.
Infact, when against the backdrop of Covid-19 pandemic it had become chaĺlenging to step out of home even to visit an ATM or bank branch. One had this unsettling fear of stepping into the crowds.
Consequently, the pace of adoption of netbanking services has been on the rise in recent times.
As the scale and pace of netbanking adoption gathers momentum, Banks across India continue to invest in enhancing their digital foundation architecture which is in synchronisation with the latest technology, risk profile, and within the regulatory ambit.
Consequently, trustworthiness has and always will be the single most valued USP of the bank, besides its ability to provide personalised offerings to its customers.
Just to give you a perspective, digital banking was introduced in India in the mid-1990s with ICICI Bank being the foremost player to adopt digital technology.
Over the years, the Indian digital banking landscape evolved with all banks offering digital solutions.
The major impetus came in 2016, with the launch of UPI ( Unified Payment Interface) system which further democratised the digital banking landscape.
Today, you can make digital payments in a variety of ways such as:

Internet Banking

Netbanking or Internet Banking or e-banking or online banking is a method to carry out financial transactions using the bank's web portal.

Mobile Banking

As the name suggests,banking transactions are carried out through the bank's mobile app on your smartphone.

Unified Payments Interface (UPI)

As per the UPI system,it allows you to pay directly from your bank account, without the need to type in the card or bank details.

Mobile Wallets

Just as you carry cash in your purpose or pocket, mobile wallets allow you to keep cash in a digital format. The fund balance in your mobile wallet can be used to transfer money.

Aadhaar Enabled Payment System (AEPS)

As per AEPS facility, you can transfer money
between two Aadhaar linked Bank Accounts.

Debit/credit and prepaid card

Unstructured Supplementary Service Data(USSD)

This facility is available for those set of customers who do not have access to proper banking and internet facilities. As a USSD customer you can just *99# on your feature phone and carry out your mobile banking transaction.

PoS Terminals and Micro ATMs

Different types of netbanking transactions :

National Electronic Fund Transfer (NEFT)

As an online payment gateway, NEFT facilitates one-to-one funds transfer across NEFT enabled banks in India, for both retail and corporate customers, provided both parties have active accounts with their respective or same bank.

Real Time Gross Settlement (RTGS)

As an online payment channel, let us understand what ' Real time ' means and then ' Gross Settlement
'Real Time' means that as soon as the system receives account transfer related settlement instructions, it processes it without a time lag, implying on a real time basis.
Gross settlement implies, the settlement of funds transfer instructions occurs individually on an instruction by instruction basis, without netting.
The minimum threshold fund to be remitted through RTGS is ₹2 lakh. On the other hand, there is no maximum threshold for RTGS transactions. In addition, the transaction processing window at the bank is from 9.00 hours to 16.30 hours on weekdays and from 9.00 hours to 14:00 hours on Saturdays for settlement at the RBI end.

Electronic Clearing System (ECS)

The ECG payment gateway is typically used
for making utility-bill-payments such as credit card payments, electricity bills, insurance premiums, loan repayments and telephone bills.

Immediate Payment Service (IMPS)

IMPS payment gateway leverages the mobile phone technology ( including internet and ATM) to make fund transfers 247365.
At this juncture, it is worthy to mention that as a customer, you don't have to stress yourself to choose between traditional banking or digital banking. In Fact it is extremely crucial that you select a combination of physical and online banking channels that best suit your financial needs and your level of comfort, perhaps a combination of technology and human interface.
Having said that, the advantages of net banking are simply formidable.

Convenience and convenience and convenience

It is all about convenience, convenience and convenience.
For example, using the netbanking/online channel one can access the account to carry out the transaction 247365 anytime, anywhere. For example, going cashless by paying your utility bills online or transferring funds without visiting a bank branch.

Richer user engagement and experience

It is all about engaging with the customer through multiple channels by providing them personalised services at their choice of date time and location.
For example,by leveraging netbanking, banks can provide interactive virtual chat to resolve your queries, locating nearby ATMs, fund transfer using mobile apps, personalised financial/investment advice, e-letters to help you make smarter decisions.

Secure and safe multi-layered digital architecture

Notwithstanding the advantages of net banking - be it convenience or richer user experience, nothing compares to ' secured and safe transaction' as the foremost requirement of net banking transactions.
As a customer, what you seek the most from the bank is 'trust' , across banking channels, offline, online, mobile banking.
Banks across India and the globe have and continue to invest in their digital architecture with upgraded technology, flexible platform, best in class cyber security guidelines to provide secured and safe transactions to each user.

Advantages & Disadvantages of Net Banking -

For example:

  • Access to uninterrupted internet connection
  • Cyber crimes , frauds - phishing, Malware etc.
  • For making cash deposits, the customer cannot use the Internet banking channel. You have to visit your nearest branch to deposit money.
  • Lack of human interaction

Never miss a trading opportunity with Margin Trading Facility

Enjoy 2X leverage on over 900+ stocks

Upstox Margin Trading Facility
Apple Logo
Downloadlogo
iOS App
Google Play Logo
Downloadlogo
Android App

RELATED ARTICLES

Reserve Bank of India - RBI Holidays -2022

Remember ! your good old school calendar in which our favourite page was the list of holidays chalked out at the beginning of each academic year. Just knowing this piece of information meant so much to us. Similarly, within the banking sector, the Reserve Bank of India ( RBI) is the apex body which publishes a detailed list of bank holidays, national and state-wise at the beginning of each calendar year. The RBI, India’s Central bank, also called as the banker’s bank key responsibility is to regulate and supervise the monetary and other banking policies of the financial sector which comprises financial institutions, commercial banks, non-banking financial companies. As an extension to its core responsibilities, the RBI publishes a list of holidays at the beginning of each calendar year. As per the holiday list, whether it is national specific or regional specific, banks would not be operational on those dates. Say for example: Republic Day, Independence Day, and Gandhi Jayanti are the only three National holidays; all other holidays are state-specific. For example: Banks remained closed on September 7-8, 2022 in Kerala for the Onam and Thiruvonam respectively. There will be a bank holiday on September 26, 2022 in Jaipur and Imphal for Navratri Sthapna. This comprehensive list of holidays is in addition to weekend Sunday holidays as well as alternate second and fourth Saturdays holidays during which all Banks across India remain closed. Consequently, the Banks across India would remain open on the 1st, 3rd and 5th Saturdays of every month (as per the notification of the RBI dated 28th August, 2015). The main purpose of declaring this comprehensive holiday list ( details given in Annexure) in advance at the beginning of each calendar year is to make you aware of the impending holidays so that you can plan your banking transactions accordingly with minimal stress. Consequently, it is mandatory for every bank across the Central / State Governments / Union Territories to follow the guidelines issued by RBI. Just to delve a bit deeper, this comprehensive list of holidays published by RBI is categorised as: - State-wise celebrations - Religious holiday - Festival celebrations and the basis of these holidays is governed by: - Holiday under Negotiable Instruments Act Real Time Gross Settlement Holiday - Banks’ Closing of Account The RBI holiday list is applicable to traditional banking transactions. As an netbanking and mobile banking customer, you can access your account 247365. You can also transact through NEFT payment service which is also available for 24×7365 (including bank holidays). However, in case of RTGS ( Real Time Gross Settlement) payment process, the 2nd and 4th Saturdays and all Sundays in a month are RTGS Holidays for every bank in India as per RBI guidelines. Besides, there is a list of additional RTGS holidays 20222 (apart from the already given holidays on 2nd & 4th Saturdays and every Sunday).

ICICI Bank Timings - Lunch Time and Working Hours for Today and Saturday

ICICI which stands for Industrial Credit and Investment Corporation of India Bank is one of the largest private sector banks in India, with a strong presence in both the retail and corporate banking sectors. The bank timings vary from branch to branch depending on their location and the services they offer. For most of the ICICI Bank branches, the ICICI Bank opening timings is 09:30 am to 3:30 pm on weekdays (Monday to Friday) and 09:30 am to 3:30 pm on 1st, 3rd, 5th Saturday of Every Month and 2nd, 4th Saturday of Every Month the bank remains closed hence does not offer any services in the branch. Similarly on Sunday the bank remains closed hence does not operate any services in the branch. However, some branches may have extended hours and may be open till 6:00 pm on weekdays and ICICI Bank timings on Saturday is 4.00PM. It's always best to check with the specific branch you plan to visit for their working hours.

HDFC Bank Mini Statement by Missed Call/Toll Free Number, SMS, & Online

HDFC Bank is one of the most reliable private banks in India. It is popular among customers for its round-the-clock services and a vast range of financial services and product offerings. With the aid of advancements in technology, HDFC Bank has made all its services available to its customers at their fingertips, saving a lot of time and hassle. You can get your HDFC mini statement, transfer funds, check your account balance, etc. on the go from anywhere at any time. Here is a detailed guide on HDFC mini-statement and how you can get one.

How Many Different Types of Bank Cheques in India

There are several types of financial instruments that can be used for payment, including cash, checks, credit and debit cards, electronic transfers, and digital currencies. Cash is the most commonly used form of payment, but it can be easily lost or stolen. Cheques, which are written orders to pay a specific amount from an account, can be used to pay bills or withdraw cash. Credit and debit cards allow consumers to make purchases or withdraw cash using a credit or debit card account. Electronic transfers, such as wire transfers and ACH transactions, enable the transfer of funds between accounts. Digital currencies, like Bitcoin, are decentralized digital assets that can be used to make payments.