After economic liberalization in India, banks were forced to change their approach and embrace new technologies like e-banking to compete with foreign banks. E-banking allows customers to access banking services electronically without visiting a physical branch. It has grown in popularity in India and provides benefits like increased convenience, higher interest rates, and more services for customers. However, e-banking also presents challenges around security, lack of personal relationships, and limited complex transaction capabilities compared to traditional banking. Overall, e-banking has benefited both banks and customers in India but still needs increased awareness and education among users.

1. BY : Ansal.P
ansalmuhammedp@gmail.com

2. • ABSTRACT
• INTRODUCTION
• DEFINITION OF E-BANKING
• HISTORY
• E-BANKING IN INDIA
• MEANING
• VARIOUS ACTIVITES UNDER E-BANKING
• VARIOUS FORMS OF E-BANKING
• PROS AND CONS OF E-BANKING
• IMPACT OF E-BANKING ON TRADITIONAL SERVICES
• INTERNET SECURITY
• CONCLUSION

3. Financial liberalization and technology revolution have allowed the
developments of new and more efficient delivery and processing channels as
well as more innovative products and services in banking industry. Banking
institutions are facing competition not only from each other but also from non-
bank financial intermediaries as well as from alternative sources of financing.
Another strategic challenge facing banking institutions today is the growing and
changing needs and expectations of consumers in tandem with increased
education levels and growing wealth. Consumers are becoming increasingly
discerning and have become more involved in their financial decisions. For many
consumers, electronic banking means 24-hour access to cash through an
automated teller machine (ATM) or Direct Deposit of paychecks into checking or
savings accounts. But electronic banking involves many different types of
transactions. Electronic banking, also known as electronic fund transfer (EFT),
uses computer and electronic technology as a substitute for checks and other
paper transactions. EFTs is initiated through devices like cards or codes that let

4. INTRODUCTION
E-banking refers to electronic banking. It is like e-business
in banking industry. E-banking is also called as "Virtual
Banking" or "Online Banking". E-banking is a result of the
growing expectations of bank's customers. E-banking
involves information technology based banking. Under this
I.T system, the banking services are delivered by way of a
Computer-Controlled System. This bank's system does
involve direct interface with the customers. The customers
do not have to visit the premises. In India E-banking is of
fairly recent origin. The traditional model for banking has
been through branch banking. Only in the early 1990s there

6. • After the economic liberalisation , there has been a considerable
changes in the banking operations in India. India banks were
forced to change their approach towards their customers in view
of the competition from multinational banks. The govt. had
realised this and brought in sweeping changes in the banking
operations. After experiencing the system, their resistance
mellowed down and we find in many Indian banks computers
have become a part of their operations. Having tasted the
benefits, they slowly extending the electronic network to their
rural branches . Employment opportunities have increased both
in the banking and other sectors by using electronic banking.
Thus,we can say that e-banking in India has done a lot of good to
the banking industry and the emergence of Merchant Bankers is
an outcome of e-Banking.

8. E-banking is nothing but electronics
banking, wherein most of the operations of
the banks are carried out through the
electronic media. Even the traditional
functions like accepting deposits and
granting of loans are done through the
electronic media it is called e-banking.

9. Pass book entry
Home banking
Identification of customers signature
Debit card and Credit card
Transfer funds through Electronic Clearance
System[ECS]
ATMs
Foreign exchange transaction

10. VARIOUS FORMS OF E-BANKING:
• INTERNET BANKING:
Internet Banking lets you handle many
banking transactions via your personal
computer. For instance, you may use
your computer to view your account
balance, request transfers between
accounts, and pay bills electronically.
Internet banking system and method in
which a personal computer is
connected by a network service
provider directly to a host computer
system of a bank such that customer
service requests can be processed
automatically without need for
intervention by customer service
representatives. The system is capable

11. AUTOMATED TELLER MACHINES
(ATM):
An unattended electronic machine in a
public place, connected to a data system
and related equipment and activated by a
bank customer to obtain cash
withdrawals and other banking services
.Also called automatic teller machine,
cash machine; Also called money
machine.
An automated teller machine or automatic
teller machine(ATM) is an electronic
computerized telecommunications device
that allows a financial institution's
customers to directly use a secure
method of communication to access their
bank accounts, order or make cash
withdrawals (or cash advances using a

12. TELE BANKING:
Undertaking a host of banking
related services including
financial transactions from the
convenience of customers
chosen place anywhere across
the GLOBE and any time of date
and night has now been made
possible by introducing on-line
Tele banking services. By
dialing the given Tele banking
number through a landline or a
mobile from anywhere, the
customer can access his
account and by following the
user-friendly menu, entire

13. DEBIT CARD:
Debit cards are also known as check cards.
Debit cards look like credit cards or ATM
(automated teller machine) cards, but
operate like cash or a personal check. Debit
cards are different from credit.
E-BANKING cards.
While a credit card is a way to "pay later," a
debit card is a way to "pay now." When you
use a debit card, your money is quickly
deducted from your checking or savings
account

14. • A credit card is a payment card issued to users
(cardholders) to enable the cardholder to pay a
merchant for goods and services, based on the
cardholder's promise to the card issuer to pay
them for the amounts so paid plus other agreed
charges. The card issuer (usually a bank)
creates a revolving account and grants a line of
credit to the cardholder, from which the
cardholder can borrow money for payment to
a merchant or as a cash advance.
• A credit card is different from a charge card,
where it requires the balance to be repaid in full
each month . In contrast, credit cards allow the
consumers a continuing balance of debt,
subject to interest being charged. A credit card
also differs from a cash card, which can be used
like currency by the owner of the card. A credit

15. SMART CARD:
A smart card usually contains an
embedded 8-bit microprocessor
(a kind of computer chip). The
microprocessor is under a
contact pad on one side of the
card. Think of the
microprocessor as
replacing the usual magnetic
stripe present on a credit card or
debit card. The microprocessor
on the smart card is there for
security. The host computer and
card reader actually "talk" to the

17. 4. THE ADVANTAGES OF INTERNET BANKING
 Customer’s convenience
Direct banks are open for business anywhere there is an internet connection.
They are also 24 hours a day, 365 days a year open while if internet service is
not available, customer services is normally
provided around the clock via telephone. Real-time account balances and
information are available at the touch of a few buttons thus, making banking
faster, easier and more efficient. In addition, updating and maintaining a direct
account is easy since it takes only a few minutes to change the mailing
address, order additional checks and be informed for market interest rates.
More efficient rates
The lack of significant infrastructure and overhead costs allow direct
banks to pay higher interest rates on savings and charge lower mortgage
and loan rates. Some offer high-yield checking accounts, high yield
certificate of deposits (CDs), and even no-penalty CDs for early

18. Services
Direct banks typically have more robust websites that offer a comprehensive set
of features that may not be found on the websites of traditional banks. These
include functional budgeting and forecasting tools, financial planning
capabilities, investment analysis tools, loan calculators and equity trading
platforms. In addition, they offer free online bill payments, online tax forms and
tax preparation.
Mobility
Internet banking also includes mobile capabilities. New applications are
continually being created to expand and improve this capability or smart-
phones and other mobile devices.
Transfers
Accounts can be automatically funded from a traditional bank account via
electronic transfer. Most direct banks offer unlimited transfers at no cost,

19. Ease of use
Online accounts are easy to set up and
require no more information than a
traditional bank account. Many offer the
option of inputting the customer's data
online or downloading the forms and
mailing them in. If the customer runs
into a problem, he has the option of
calling or e-mailing the bank directly.
Environment friendly
Internet banking is also
environmentally friendly.
Electronic transmissions require
no paper, reduce vehicle traffic and

21. DISADVANTAGES OF E BANKING
Bank relationship
A traditional bank provides the opportunity to develop a personal relationship with that bank.
Getting to know the people at your local branch can be an advantage when a customer needs a loan
or a special service that is not normally offered to the public. A bank manager usually has some
discretion in changing the terms of customer's account if the customer's personal circumstances
change. They can help customers solve problems such as reversing an undeserved fee. The banker also
will get to know the customer and his unique needs. If the customer has a business account, this
personal relationship may help if the customer needs capital to expand. It’s easier to get the bank’s
support if there is someone who understands customer's business and vouch for his operating plan.
Transaction issues
Sometimes a face-to-face meeting is required to complete complex
transactions and address
complicated problems. A traditional bank can host meetings and call in
experts to solve a specific issue . Moreover, international transactions may be
more difficult (or impossible) with some direct banks. If a customer deposits
cash on a regular basis, a traditional bank with a drive-through window may

22. Service issues
Some direct banks may not offer all the comprehensive financial services such
as insurance and
brokerage accounts that traditional banks offer. Traditional banks sometimes
offer special services to loyal customers such as preferred rates ad
investment advice at no extra charge. In addition, routine services such as
notarization and bank signature quarantee are not available online. These
services are required for many financial and legal transactions.
Security
Direct banks are subject to the same laws and regulations as traditional
banks and accounts are protected by the FDIC. Sophisticated
encryption software is designed to protect your account information but
no system is perfect. Accounts may be subject to phishing, hacker
attacks, malware and other un authorised activity. Most banks now
make scanned copies of cleared checks available online which helps to

23. OTHER FORMS OF ELECTRONIC
BANKING
· Direct Deposit
· Electronic Bill Payment
· Electronic Check Conversion
· Cash Value Stored, Etc.

24. • One of the issues currently being addressed is the impact of e-
banking on traditional banking players . After all, if there are
risks inherent in going into e-banking there are other risks in
not doing so. It is too early to have a firm view on this yet. Even
to practitioners the future of e-banking and its implications are
unclear .It might be convenient nevertheless to outline briefly
two views that are prevalent in the market .The view that the
Internet is a revolution that will sweep away the old order holds
much sway. Arguments in favour areas follows :E-banking
transactions are much cheaper than branch or even phone
transactions. This could turn yesterday’s competitive advantage
- a large branch network, into a comparative disadvantage
,allowing e banks to undercut bricks-and-mortar banks. This is
commonly known as the "beached dinosaur" theory .E banks
are easy to set up so lots of new entrants will arrive. ‘Old-world’

25. Internet banking is a new specific banking area,
part of e-banking industry, which allows people
to interact with their banking accounts
virtually from anywhere in the world. Internet
banking addresses few emerging trends such as
customer demand for any time, anywhere
services, product time to market essentials, and
increasingly complex back-office integration
challenges. One such challenge is the security of
online financial transactions. In order for the
industry to develop further, secure transactions
with the trust of the customers are necessary
aspects. Many banks advertise secure online

26. In India, E-banking is in a nascent stage. No doubt
Indian banks are making sincere efforts for the
adoption of advanced technology and installation
of e-delivery channels but still masses are wary of
the concept. E-banks should create awareness
among people about E-banking products and
services. Customers should be made literate about
the use of e-banking products and services.
Indicators of the challenges of E-banking should