Internet banking allows customers to perform banking activities through the internet rather than visiting a branch in person. It offers convenience through anytime, anywhere access on a personal computer. Key features include fast and efficient transactions using digital processing. Banks benefit through reduced costs, increased customer base and risk reduction while customers benefit from prompt service, time savings and more convenience. Delivery channels for e-banking include CBS, ATMs, smart cards and online services like bill payment, shopping, trading and fund transfers. However, issues like security, infrastructure costs, user awareness and unauthorized access pose limitations. Common models are complete centralized solution and cluster approach.

1. Internet Banking
Prepared by-
Dr Ramandeep
Assistant Professor
Deptt. of Commerce
GCW, Sirsa (Haryana)

2. Introduction
• Internet Banking refers to electronic banking. It is also
known as virtual banking, online banking or anywhere
banking.
• It enables a client to perform his banking activities on his
personal computer through internet.
• Internet banking involves the use of internet as a medium
of communication for accessing and utilizing most of
banking services.

3. Definition
“Internet banking refers to banking services
where customers can manage their accounts
over the internet, rather than personally
visiting a branch.”

4. Features of Internet Banking
• Use of internet
• Customers can do their transactions fastly and efficiently
• Anytime-anywhere banking
• Helps in Expanding the customer base
• Quick and fast information
• Digital processing
• Customer convenience

5. E-banking Delivery Channels
1. Centralized Banking Solution (CBS)
Its an inter-branch networking and data sharing
platform helps the customers to operate their
accounts from any city in India having CBS
networked branches.

6. E-banking Delivery Channels Continue….
2. Automated Teller Machines (ATM)
ATMs are designed to perform banking activities like-
- Accepting deposits
- Withdrawal of money
- Transfer of money
- Mobile recharge

7. E-banking Delivery Channels (Continue….)
3. Smart cards
Smart card is a chip based card. In simple layman’s words, a
smart card is the card with which we can exchange the data,
store it and manipulate data.
It performs all functions of magnetic strip cards like ATM Card,
Debit and Credit Card etc.

8. E-banking Delivery Channels (Continue….)
Examples of Smart cards
• Hospitals use these cards to store patient details.
• EBT (Electronic benefits transfer) cards are used for
the distribution of government benefits.
• Smart cards are used by educational institutions,
government authorities etc for access control.

9. Advantages of E-Banking
A.Benefits to Banks
1. Reduces cost
2. Global coverage
3. Central data base
4. Increase in customer base
5. Reduction of risk
6. Reduction in paper work
7. Adequate marketing too
8. Reduction in fraud and misappropriations

10. Advantages of E-Banking
B. Benefits to Customers
1. Prompt in service
2. Anywhere anytime banking
3. Cashless banking
4. Online shopping
5. Saving of time
6. More convenience
7. More customer satisfaction

11. Advantages of E-Banking
C. Benefits to Traders
1. Promotion of Business
2. Immediate settlement
3. Avoids risk

12. Advantages of E-Banking
D. Benefits to Government and Nation
1. Clarity over transactions
2. Global coverage of product
3. Risk attached with handling cash

13. Limitations of E-Banking
1. High infrastructural cost
2. Lack of awareness
3. Security and privacy
problems
4. Access problem
5. Lack of proper Cyber
Laws
6. Lack of initiative on the
part of employees
7. Hesitation on the part of
users
8. Lack of computerization
9. Unauthorized transactions

14. Models foe E-Banking
1. Complete Centralised Solution (CCS)
CCS is an ideal branch network model. It is an
inter branch networking and data sharing
platform helps the customers to operate their
account from any city in the country.

15. Models foe E-Banking (Continue……)
2. Cluster Approach
The computerized branches of each city are connected
with Regional Processor located at each such city.
It is necessary that computerization must be there at all
branches to establish the connectivity amongst various
branches..

16. Models foe E-Banking (Continue……)
3. High Tech Bank within Bank
In this model, total computerization is avoided in
all branches. Two different banks works within
bank i.e. High tech bank and traditional
bank.

17. Internet Banking Services
• Online Tax Payment
• Corporate internet
Banking
• Retail internet Banking
• Online Shopping
• Foreign Exchange
• E-Money India
• Online Railway
Reservation
• Depository Service
• Electronic Fund Transfer
• Online Bill Payment
• Online Air Ticketing
• Online Trading
• Customer Care Service
• Online Insta Remitt-
RTCG

18. Thank You