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Internet Banking

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What is Internet Banking?

Internet banking is also known as E-Banking or Online banking. It is the facility which is provided by the banks in which you can transfer the funds from one bank account to another bank account. Using internet banking you can easily access several services while sitting at home. a variety of financial transaction can be performed under quick access. While sitting at home with the help of internet banking, you can complete several tasks with ease.

Advantages of internet banking:-

Easy to use:-

Internet banking is easy to use because its features are very simple.

Time-saving and Efficient:-

You can send money whenever and wherever you want that saves both your time and effort.

Account activity tracking:-

You can track your accounts all the time So that if there is any fraudulent transaction, then you will know immediately and then you can report to the bank.

convenience to make payment:-

Internet banking makes it quite convenient to carry out transactional activities like transfer of funds, payment of bills, etc. this means, no longer having to wait in queues for bill payments or having to safely keep receipts of bill payments, which are also perishable.

Any time availability:-

Another indisputable advantage of online banking is that it is available round the clock, throughout the year. You don’t have to schedule a time when you can carry out banking activities, regardless of it being a weekend, time of the day or even holidays

Disadvantages of internet banking:-

Security risk:-

If your id and password went in a wrong hand, then it could be used in a wrong way wrong, so always try to use internet banking at a secure place and secured source.

No access without internet:-

If you do not have internet, you cannot access internet banking, so you should have the internet to access internet banking.

Basic Knowledge of technology:-

To access internet banking you should have basic knowledge about how to access the internet and mobile phone.

Transaction risk at slow internet:-

If your internet is slow or the server is down, then there is a chance of the transaction failing or money being stuck.

Features of internet banking:-

Transferring fund:-

You can transfer the money from one bank account to another bank account

Apply for a loan:-

You can apply for the loan via internet banking.

Bank statement:-

You can view your bank statement at any time and anywhere.

Open FD or RD account:-

You can open an FD account or RD account via net banking

Apply for the debit card:-

You can apply for the debit card by net banking

Pay bill:-

You can pay bills via internet banking

Some important thing for accessing internet banking account:-

  • You should have a bank account which provides an internet banking facility
  • User Id and password
  • Good internet connection

How to transfer funds from one bank account to another bank account:- 

Internet banking provides three modes to transfer the funds from bank account another bank account:

  1. NEFT
  2. IMPS
  3. RTGS

NEFT (National Electronic fund transfer):-

  • You can transfer the as much as you want from this mode
  • It does not immediately transfer money; it takes time to reach the funds to the receiver.
  • You can transfer the money only on working days

IMPS (Immediate payment service):-

  • You can transfer the money from Rs 1 to Rs 2 lakh
  • It transfers the funds immediately
  • It does not require beneficiaries to be registered in imps you can send money by simply entering the account number and IFSC code of beneficiary.

RTGS (real-time gross settlement):-

  • It is the fastest mode for transferring the money
  • You cannot transfer money below 2 lakhs

NEFT, RTGS, and IMPS comparison:-

Comparison category NEFT RTGS IMPS
Minimum Transfer Limit Re.1  Rs 2 lakh Re.1
Maximum Transfer Limit Nil Nil Rs 2 lakh
Transaction Charges  Nil No charges for inward transactions charges applicable for outward transactions for amount:

Rs.2 lakh – Rs.5 lakh: not exceeding Rs.25

Above Rs.5 lakh: not exceeding Rs.50

Charges for remittance through IMPS are decided by the individual member banks and PPIs. The taxes are included.