E-banking allows customers to perform virtual banking functions securely online. It involves using the internet to deliver banking products and services. E-banking first emerged in the mid-1990s through ATMs and phone transactions before transforming to internet banking. The main goal of e-banking is to provide faster service to customers at a lower cost. It offers services like bill payments, funds transfers, account balances, insurance applications, investments, shopping and more through various technologies like ATMs, credit/debit cards, mobile and internet banking. The key benefits are time savings, convenience, 24/7 access, lower costs and integrated services. However, e-banking also faces challenges around adopting strong security methods and standardizing technologies

1. E - Banking
FEMY MONI
ASSISTANT PROFESSOR

2. E-Banking
• E-Banking (Internet Banking) is an e-commerce
application which allows the customers to perform any
of the virtual banking functions, financial functions
online in a protected and secure manner.
• It involves the use of internet for delivery of banking
products and services.

3. Beginning of E-banking
• The usage of e banking by the enterprises came into
existence in mid 90’s. E-banking came into existence
in greater numbers because of low operating costs.
• First it is in the form of ATM’s and phone
transactions. Recently it transformed to internet a new
channel between customers and banks which benefits
both.
• The main aim of e- banking services is to provide the
customers a much faster services with low cost.

4. Services Provided through E-Banking
 Bill payment service
 Fund transfers
 Querying the account balance
 Applying for/claiming
Insurance
 Investment through Internet
Banking
 Shopping
 Automated Teller Machines
 Credit Cards
 Debit Cards
 Smart Cards
 Electronic Funds Transfer
(EFT) System
 Cheques Truncation Payment
System
 Mobile Banking
 Internet Banking
 Telephone Banking

6. BENEFITS OF E-BANKING
 Time saving
 Convenience
 24x7 services
 Eco-friendly Process
 Easy Access
 Faster Banking
 Cost Saving
 Integrated banking services
 Provides some security and privacy to customers, by using state-of-
the-art encryption and security technologies.

9. CHALLENGES IN E-BANKING
The most important requirement for the successful working of internet
banking is the adoption of the best security methods. This presupposes the
existence of a uniform and the best available technological devices and
methods to protect electronic banking transactions. In order for
computerization to take care of the emerging needs, the recommendations
of the Committee on Technology Upgradation in the Banking Sector
(1999) may be considered. These are:
(1) Need for standardization of hardware, operating systems, system
software, and application software to facilitate interconnectivity of
systems across branches
(2) Need for high levels of security

10. (3) Communication and networking – The use of networks which
would facilitate centralized databases and distributed processing
(4) Technology plan with periodical upgradation
(5) Business process re-engineering
(6) Address the issue of human relations in a computerized
environment
(7) Sharing of technology experiences
(8) Payment systems which use information technology tools.