What You Need to Know About Online Banking

ONLINE BANKING

What is Online Banking?

Online banking, also known as internet banking, web banking, or home banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website. The online banking system will typically connect to or be part of the core banking system operated by a bank to provide customers access to banking services in place of traditional branch banking. Online banking significantly reduces the banks' operating cost by reducing reliance on a branch network and offers greater convenience to customers in time-saving in coming to a branch and the convenience of being able to perform banking transactions even when branches are closed. Internet banking provides personal and corporate banking services offering features such as viewing account balances, obtaining statements, checking recent transactions, transferring money between accounts, and making payments.

With the advent of digitalization, almost all banks now provide net banking, allowing customers to conduct all banking transactions online. The online functionality eliminates the need for a customer to physically visit the bank, which is otherwise required. Everything can be completed in minutes through net banking, regardless of the time or location of the user.

Some banks operate as "direct banks" (also called "Neo-banks" or "virtual banks"), where they operate entirely via internet banking.

What are the Features of Online Banking?

The following are some of the features of net banking that make this electronic system so popular:

• Online banking enables quick access to all banking services
• Customers can easily check their balance and transaction history at any time
• Bill payments and fund transfers are simple
• Net banking provides a safe environment for a variety of banking transactions
• Every customer has a distinct banking ID and password
• Customers can even use internet banking to apply for a loan or insurance
• Online banking allows customers to easily upgrade their debit/credit cards as well as block them when necessary
• Customers can also easily update their primary and secondary addresses

What are the Advantages of Online Banking?

The following are the benefits of net banking that make it an obvious choice for obtaining banking services online:

• The online banking facility is available 24*7
• It makes it simple for customers to transfer funds
• Net banking facilities offer convenience when it comes to transferring money or performing banking transactions
• Customers can easily track their transaction history with a single click
• Online banking is secure and password-protected
• Non-financial activities such as ordering a cheque book, checking the account balance, obtaining a passbook, and so on are simple

What are the Limitations of Online Banking?

The limitations of net banking are

• Online banking can be difficult for beginners to get started with
• An internet connection is required to access banking services online
• Changing passwords is a continuous process as the password must be changed every two months to protect the bank account from hackers.

How to Register for Online Banking?

If a user does not have access to an online banking facility, the steps he or she can take to obtain one are as follows:

• Visit your nearest bank’s branch and submit the internet banking application form along with the required documents such as your bank passbook, Aadhaar card, and so on
• The customer ID and password will be issued by the banking official following the submission and verification of the internet banking application form and documents

How to Register for Online Banking Online?

Following are the steps to be followed to register for net banking online-

• Navigate to the bank’s official net banking website
• Click the login button or the ‘New user/Register here’ link
• If you have online banking credentials, enter them and continue. If you are not already a registered member, register yourself first
• Fill out the self-registration form with your account number, registered mobile number, CIF number, debit card information, and other information
• Then, to authenticate the process, enter the OTP that was sent to your registered mobile number
• Enter your temporary customer identification number and password
• Log in to create a more secure password

A Comparative Difference Between Online Banking and Mobile Banking

Mobile banking can be a good way to perform various banking functions; however, online banking is vast and contains almost all of the features, functionalities, and services that banking mobile applications do not provide. Following are the differences between net banking and mobile banking

Online Banking or Mobile Banking- which is more secure?

Both online banking and mobile banking applications are safe to use as the bank ensures to integrate a system that might help in detecting fraudulent activities or any suspicious activity. Additionally, banks also alert their customers in case of detect if their account is being handled by other authorities fraudulently. Mobile banking applications make it hard for another unknown person to crack the application password whereas net banking can be used only after entering the user ID and password. However, it is advised to use digital platforms carefully and judiciously as they are still prone to online fraud and related activities.

Bottom line

Online banking is a service provided by banks that allows customers to access banking services online rather than visiting the bank in person. However, it should be noted that net banking facilities can only be accessed via the internet; thus, changing the security password on a regular basis is recommended to keep the bank account secure from hackers. Apart from that, it is advised not to share net banking credentials with anyone as it might lead to account hacking.