USEFUL TO COMMERE STUDENTS

1. ELECTRONIC
BANKING

3. INTRODUCTION
1. Electronic banking is a form of banking in which funds are
transferred through an exchange of electronic signals rather than
through an exchange of cash, checks or other types of paper
documents.
2. Electronic Banking is a major innovation in the field of Banking.
3. E-banking was conceptualized in the mid-1970s, some banks
offered customers electronic banking in 1985.
4. Internet banking arrived in India in the late of 1990. ICCI Was
introduced E-banking to its customers in 1996 with lower internet
cost and increased awareness.

4. ADVANTAGES AND DISADVANTAGES OF
E-BANKING
ADVANTAGES
User friendly.
Low cost and Convenience.
Portable Banking.
Speed Banking.
Round The Clock Banking.
Available 24 hours 365 days.
Efficiency.
DISADVANTAGES
Difficult for Beginners.
Trust and Responsibility.
Inconvenience.
Inability to Handle Complex Transactions.
Security and Technology issues.
Virtual Assistance.
Financial Jargon.

5. SERVICES
i. Bill payment service.
ii. Credit card customers.
iii. Tickets booking.
iv. Recharging your prepaid phone.
v. Shopping at your finger tips.
vi. Transfer funds.
vii. Manage all your accounts in one place.

6. TYPES
 Automated Teller Machines (ATM).
 Telephone Banking.
 Mobile Banking.
 Internet Banking.
 Electronic Clearing cards.
 Electronic Clearing Services (ECS).
 Electronic Fund Transfer (EFT).

8. AUTOMATED TELLER MACHINE
(ATM)
 An Automated teller machine (ATM) is an electronic banking outlet that
allows customers to complete basic transactions without the aid of a
branch representative or teller.
Any one with a credit or debit card can access cash at most ATMs.
 Its perform financial transactions, such as cash withdrawals, deposits,
funds transfers, or account information inquiries, at any time.
 It is a plastic ATM card with a magnetic strip. It contains a unique card
number and identity information. This card is used by bank.
Now a days it is widely used in all fields such as defense and many
others.

9. HISTORY
• Alex Robertson has been credited with developing and
building the first automatic teller machine in USA.
• The first ATM called Bankograph was installed in
Barkley bank in north London on 27th June 1967.
• After that it was later countries like Japan, Sweden, U.K.
credited in developing first cash machine.
• The first ATM in India was set up in 1987 by HSBC in
Mumbai.
• IBA Indian Bank’s Association set up Swadhan, the
first network of shared ATMs in India.

10. ADVANTAGES AND DISADVANTAGES OF ATM
ADVANTAGES
You can withdraw cash at any time,
day or night. The bank don’t need to
be open.
Convenience and secure.
You don’t need to fill out withdrawal
and deposit slips as required at the
bank.
Available 24 hours 365 days.
DISADVANTAGES
ATM may be offline (System down)
You may forget your pin number.
Risk of robbery when you leave the
ATM.
Inability to Handle Complex Transactions.
The ATM can break down or run out
of cash.
Fees charged to use ATMs of other
banks can become expensive.

11. CARD
TECHNOLOGY
TYPES OF CARDS
 Debit cards
 Credit cards
 Prepaid cards

12. SMART CARD TECHNOLOGY
•It is a chip based card (micro chip containing monetary value).
•It is used for making purchases without the need of any pin.
•It is a powerful card which carries out functions of ATM card, credit
card, Debit card.
•Atalla in 1972 and introduced the first hardware security module
(HSM) for securing card payment transactions in 1973, utilizing
microprocessor technology.
•Smart payment cards were introduced to the banking sector in 1979,
and came into wider use in the mid 1980s.

14. TELEPHONE BANKING
•It means banking over phone.
•Mainly used for marketing banking services.
•A customer can do entire Non-cash related banking over phone
anywhere at any time.
•Mobile banking will emerge as one of the most cost effective
delivery channel.
•United kingdom, which established a dedicated telephone banking
services in 1984.

16. MOBILE BANKING
Mobile banking is a service provided by a bank or other financial
institution that allows its customers to conduct financial transactions
remotely using a mobile device such as a smart phone or tablet.
Unlike the internet banking it uses software, usually called an app.
The earliest mobile banking service used SMS banking. After
smartphones were introduced with WAP. European banks started
offering mobile banking.
In the year 2002 Mobile banking was started in India by way of
SMS Banking.

18. INTERNET BANKING
It is an electronic payment system that enables customers of a bank
or other financial institution to conduct range of financial
transactions through financial institution’s website.
Internet banking, customer of a bank with a pc can log on to the
bank website & conduct basic functions by clicking mouse.
Internet banking is also known as online banking or web banking.
Internet banking was first adopt in New York in 1981 in banks like
Citibank. Stanford Federal Credit Union was the first service
provider of Internet banking in October 1994. Internet banking
arrived in India in 1990’s by ICICI.

20. ELECTRONIC FUND TRANSFER
Electronic funds transfer (EFT)is the electronic transfer of money from
one bank account to another.
The fund transfer might be either within a single financial institution or
across multiple institutions.
It is done through computer based systems, without the direct
intervention of bank staff.
An EFT can be initiated by a or by an like a business.
It may be referred to as electronic cheques or e-cheques.

21. Electronic fund transfer allows customers to make money transfers
at the comfort of their homes using integrated banking tools such as
internet and mobile banking.
Besides being convenient, electronic transfer modes are considered
to be safe, secure and make transferring money much simpler.
Electronic transfers are processed immediately with the transferred
amount being deducted from one account and credited to the real
time, thus saving time and effort involved in physically transferring a
sum of money.
REASONS FOR PREFFERING
ELECTRONIC FUND TRANSFER

22. ADVANTAGES OF EFT
1. Increase efficiency and productivity.
2. Manage cash flow easily.
3. Improve safety and control.
4. Saves money.
5. Less paper works.
6. Eliminate the risks associated with lost.
7. Eliminate the risks associated with lost, stolen, or misdirected
cheques.

23. DISADVANTAGES OF EFT
1. Technical problems.
2. Vulnerability to cybercriminals.
3. Quite expensive to setup.
4. Payment gateways charge Service fees.
5. The fund transfer process generally consists of a series of electronic
messages sent between financial institutions directing each to make
debit and credit accounting necessary to complete the transaction.

24. TYPES OF ELECTRONIC FUND
TRANSFER
 National Electronics Fund
Transfer

 Immediate Payment
Service

26. NATIONAL ELECTRONIC FUNDS
TRANSFER (NEFT)
NEFT is an electronic funds transfer system maintained by the
Reserve bank of India and Started in November 2005.
The setup was established and maintained by Institute for
Development and Research in Banking Technology.
NEFT is a facility provided to bank customers to enable them to
transfer funds easily and secure. It is done via electronic messages.
NEFT facilities are available in all over the country and work on a
batch mode.

27. ADVANTAGES AND DISADVANTAGES OF NEFT
DISADVANTAGES
Safe Effective and Highly reliable. It takes time to settle the
transaction.
Low processing Charges. It does not work when the bank is
closed the transaction remain
pending till the bank is open.
Eliminates delays. It is not fastest system to transfer
the money compare to RTGS &
IMPS.

29. REAL TIME GROSS SETTLEMENT
(RTGS)
• RTGS are specialist funds transfer systems where the transfer of money
or securities takes place from one bank to any other bank on a "real-time"
and on a "gross" basis. Established in March 2004. Maintained by RBI.
• Settlement in "real time" means a payment transaction is not subjected to
any waiting period, with transactions being settled as soon as they are
processed.
• "Gross settlement" means the transaction is settled on a one-to-one
basis, without bundling or netting with any other transaction.
• "Settlement" means that once processed, payments are final and
irrevocable.

30. ADVANTAGES AND DISADVANTAGES OF RTGS
DISADVANTAGES
Safe, Secure and Reliable. It is mainly employed for the large
value and the transfer of the inter
fund banks.
Real time online fund transfer. It has the Gross system grid lock
risk that do not have enough money.
Immediate clearing. It does not provide the facility to
track the transaction.

32. IMMEDIATE PAYMENT SERVICE (IMPS)
IMPS is an instant real time inter-bank electronic funds transfer
system in India. IMPS offers an inter-bank electronic fund transfer
service through mobile phones.
 The service is available 24/7 thought the year including bank
holidays.
It is managed by the National payments corporation of India (NPCI).
It was established in 2010, with 4 member banks (State Bank of
India, Bank of India, Union Bank of India and ICICI Bank), and
expanded it include Yes Bank, Axis bank and HDFC Bank. IMPS
was publicly launched on November 22, 2010.

33. ADVANTAGES AND DISADVANTAGES OF IMPS
DISADVANTAGES
Simple architecture. Security issues.
Available for 24 hours in a day
even on Holidays.
Lack of charging protocol.
The money will be credited in the
beneficiary’s account within a few
seconds.
Available only through online
mode.

34. UNIFIED PAYMENTS INTERFACE (UPI)
•Unified payments Interface is an instant real time payment system.
•UPI is a Upgraded version of IMPS.
•It was established in 11 April 2016.
•It was developed by National payments Corporation of India
facilitating inter bank-transactions.
•The interface is regulated by the Reserve Bank of India and works by
instantly transferring funds between two bank accounts on a mobile
platform like Google pay, Paytm, Phonepe.

35. DIFFERENCE BETWEEN
NEFT, RTGS, IMPS, UPI

36. BASIS OF
DIFFERENCE
NEFT RTGS IMPS UPI
Managed By RBI RBI NPCI NPCI
Established Year In 2005 In 2004 In 2010 In 2016
Minimum transfer limit Rs 1 Rs 2 lakh Rs 1 Rs 1
Maximum Transfer Limit No limit No limit Rs 2 lakh Rs 1 lakh
Offline Transfer Yes Yes No No
Online Transfer Net Banking,
Mobile
Banking
Net Banking,
Mobile Banking
Net Banking,
Mobile Banking
Google pay,
Phonepe,
Paytm, Etc.
Transfer Speed Within 2
Business Hours
Immediate Immediate Immediate

37. BASIS OF
DIFFERENCE
NEFT RTGS IMPS UPI
Settlement Type Group (Half Hourly
Batches)
One-one One-one One-one
Service Timing Monday To Saturday
(Except 2nd & 4th
Saturday)
RBI makes facility
available for 24 hours
365 days on Dec 16
2019
Weekdays 8 Am to 7pm
Saturday 8 Am to 1 pm
Monday to Saturday
(Except 2nd & 4th
Saturday)
Weekdays 9 Am to
4.30pm
Saturday 9 Am to 2
pm
24/7 24/7
Details required to
transfer
Receiver’s Bank
Account Number and
IFSC code
Receiver’s Bank
Account Number
and IFSC code
Receiver’s Bank
Account Number
and IFSC code or
Mobile Number
and MMID
Receiver’s Bank
Virtual ID or
Account Number
and IFSC code or
Mobile Number

38. BASIS OF
DIFFERENCE
NEFT RTGS IMPS UPI
Service Charges for
sender
• For Transaction up to Rs
10,000 Rs 2.50
(+Applicable GST).
• For Transaction above Rs
10,000 up to Rs 1 lakh Rs 5
(+Applicable GST).
• For transaction above Rs
1,00,000 and up to Rs 2
lakh Rs 15 (+Applicable
GST).
• For transactions above Rs 2
lakh; Rs 25 (+Applicable
GST).
• 2,00,000/- to 5,00,000;
Rs 24.50/- (exclusive of
tax if any).
• Above Rs 500,000/- Rs
49.50/- (exclusive of tax,
if any).
• Bank may decide to
charge a lower rate but
cannot charge more than
the rates prescribed by
RBI.
Charges Based
on Banks.
Free as
of Now.
Charges for receiver Free. Free. Free. Free.

40. SOCIETY FOR WORLDWIDE INTERBANK
FINANCIAL TELECOMMUNICATIONS (SWIFT)
• Limited Liability Co-operative Society with head office in Belgium and
established in 1973.
• To send and receive information about financial transactions secure and
standardized messages.
• Today over 200 different SWIFT messages exist, including:
• Credit and Debit Instructions.
• Buy and Sell Orders.
• Documentary Credits.
• Collections, Guarantees, interbank transfers etc.

42. STRUCTURED FINANCIAL MESSAGING SYSTEM
(SFMS)
• SFMS is a secure messaging standard developed to serve as a platform for
intra-bank and inter-bank applications.
• It is an Indian standard similar to SWIFT. It is built on the lines of SWIFT
(Society for World-wide Interbank Financial Telecommunications).
• SFMS can be used for secure communication within the bank and between
banks.
• The SFMS was launched on December 14, 2001 at IDRBT
• It is used by applications like electronic funds transfer (EFT), real time gross
settlement systems (RTGS), delivery versus payments (DVP), centralized
funds management systems (CFMS) and others.

44. OMBUDSMAN
 An ombudsman is a person who acts as a trusted intermediary
between an organization and some internal or external constituency
and represents not only but mostly the broad scope of constituent
interests.
 Established in 1809 at Sweden.
Acting as a Agent of the parliament.
Safeguard of the citizen.
Works as a civil court.
Accountable to the Government.

45. FUNCTIONS
 May investigate and take action.
Sometimes it works different from Court.
During investigation time its act like a civil court.
May give punishment.
Look into complaints for the citizen.
May examine the witness.
To give summon for examination.

46. POWERS
a. Investigating power.
b. Restriction of publication of proceedings.
c. Power to punish any person for obstruction.
d. Delegation power.
e. Power of entry.
f. Immunities.

47. CUSTOMER
SERVICES

48. CUSTOMER SERVICES
•Customer service in banking is one of
the most important ways to
keep customers coming back.
• It includes responding to customers
questions and complaints in a thorough
and timely manner and interacting
with customers through face-to-face
meetings, telephone, mail, fax and email.

49. CONCLUSION
E-Banking Enable Better Business Anywhere, Anytime.
E-banking represent a tremendous opportunity in India.
However, Factors such as illiteracy in India.
The main aim of e-banking is to making transactions through online
poses and make customer more beneficial.
Technology enables banks as well as the customers to access a host
of amazing services by simply logging in to internet banking
account.