E- Banking, as now , we know is entirely automated facility based on IT delivery mechanism to conventional banking users products and service. It provides online medium of conducting and providing various banking service such as online accessibility of bank account,online fund transfer facility, online bills paying facility etc. E- Banking concept developed, banks have started enjoying it’s various advantages like reduced per transaction cost, enhanced customer service, raised long term returns by providing “ anytime anywhere”.

Introduction

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E- BANKING PRODUCTS AND SERVICES

a) Basic Tier Structure: A basic tier of Internet Banking products includes:

• Customer account enquiry
• Funds transfer
• Electronic Bill Payment etc.

b) Premium Structure

A second or premium tier structure includes:

• Basic services plus one or more additional services like brokerage, cash management, credit applications, credit and debit Cards, demat holdings , financial advice, online trading, tax services, e- shopping investments and asset management services etc .

BANKING PRODUCTS AND LEVELS OF ACCESS

• As we know, E- Banking applications run on diverse platforms, operating systems and use different architecture. Further, the product may support centralised operations or branch level automation. Such products have a distributed client server or to say it more precisely they have a three tier architecture based on a file system . In addition to this , E- Banking products can run on computer systems of various types ranging from PCs , open systems to proprietary main frames.

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These products, thus , allow different levels of access to the customers and different range

of facilities which can be studied as under –

Information only system

Electronic Information Transfer System

Fully Transaction System

AUTOMATED TELLER MACHINE MACHINES ( AT(I) AUTOMATED TELLER�

ATMS have transformed the concept of banking in india. It has eliminated the requirement to stand in long queue and filling of forms for Routine Banking transactions. ATM is an electronic computerised telecommunications device that allowed the financial institutions customers to directly use a secure method of communication to access their bank accounts, make cash withdrawals and check their account balances. ATMS have now provided user friendly services and flexible payment methods. It is possible due to the introduction of IT in banks . ATMs have the customer account number on the magnetic stripe or chip. Further verifies his / her identity by entering a passcode often referred as PIN . By doing so, the transaction can be successfully completed.

FACILITIES PROVIDED :

1. 1. Anytime, anywhere access to cash , withdrawal of cash is 24x7 available.

2. Cheque Book request can be made by the Customers through ATM .

3. Utility bills can be paid via ATM.
4. Customers can pay Credit Card Bill via ATMs .
5. Change of PIN of ATM / Debit Card can be done via ATM.
6. Customers can also change their mobile numbers via ATMs.
7. Money transfer from one account to another is possible with ATM.
8. Other payments like mutual fund payment and Insurance

INTERNET BANKING

• Internet banking means conducting banking transactions via the internet
• Almost all banks offer net banking facilities.
• You can check account balances, transfer funds, manage your debit and credit cards etc., with net banking.
• It is a time-saving facility available 24x7x365.
• You can conduct financial transactions in real-time with internet banking.

VARIOUS FACILITIES PROVIDED BY INTERNET BANKING

• Customers can check the current Balance in their account.
• All the past transactions from the date of opening the account can be checked by the customers.
• Money can be transferred to any Bank A/C of that particular Bank/ any other Bank.
• Transfer of fund having visa debit card holders or credit card holders.
• Mutual fund schemes can be sold online with the help of internet Banking account.
• Fixed Deposit and Recurring deposit can also be applied via internet Banking.
• Bank Account Statement can be received on e- mails.
• customer can change password whether log in or transaction password.
• customer can request for a demand draft with internet Banking Account.
• Reissue of ATM / Debit cards can be made through internet Banking.
• Demat account detail and transaction can be provided.
• customer can change password.

TELEPHONE BANKING

Tele Banking is the process of handling bank account over the phone . It is also referred as Telephone Banking. Bank’s customers can get information about their accounts, make banking transactions like fixed deposits, money transfer, demand draft , collection and payment etc. by using telephones.

Nowadays more and more people are making use of mobile phones, tele Banking can also be done through mobile phones. Tele Banking satisfies the customer with fast, anytime transaction and account information via telephone access.It also makes customer service and Bank account information available to a person 24x 7 . It is a useful asset when traveling overseas that make traditional banking access difficult.

FACILITIES PROVIDED:

1. Customers can get details of saving, current, fixed deposits available in their account

balance.

2. Customers can get their cheque book and latest bank account statement.
3. It also provides money transfer facility.
4. Mobile Banking request can be made with the help of phone Banking.
5. Customers can get latest information about prevailing interest rates .
6. Customers can block Internet Banking User ID with the help of tele Banking.
7. Tele Banking helps the customers to get an ATM card issued.
8. It also helps the customer to block ATM , Debit Card, without visiting bank’s branch .
9. Helps to verify details like amount, maturity, amount about term deposit accounts.
10. Helps to verify details like amount, installment amount, due date etc . About loan

accounts.

MOBILE BANKING

Mobile Banking is the act of doing financial transactions on a mobile device ( Cell phone, tablet, personal digital assistant etc.) It is very convenient in today’s digital age. Mobile technology is well accepted and widely available at an affordable price. It is suitable for banking and payment services and provides huge opportunity to extend financial services to each and every individual irrespective of the place they are residing.

Facilities provided by Mobile Banking :

• Information about the updated account Balance with the help of Mobile Banking that includes balance enqiury and mini – statement.
• It enables fund transfer easily.
• Customer can request a Cheque Book with the help of mobile banking.
• It provides the facility of demat inquiry to the customers.
• It enables online payments.
• Mobile/ DTH Recharges can be done with the help of mobile banking.

DEBIT CARD

Debit Cards are also known as bank cards or check cards. It is basically a payment card that deducts money directly from a consumer’s checking account to pay for a purchase. Debit Cards eliminate the need to carry cash or physical cheques to make purchases. It is similar to a credit card , but unlike a credit card the money comes directly from the users bank account when performing a transaction. Further, Debit Cards generally have a daily purchase limits , i.e it may not be possible to make an especially large purchase with debit card . Debit Card serve a dual purpose as primarily they allow customers to withdraw money through an ATM and secondary they allow customers to make purchases.

Smart Cards

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A smart card is a plastic card that contains a microprocessor and a memory chip or just a memory chip. The microprocessor card has the ability to add, delete and manipulate information on the card. A memory-chip card, such as a phone card, can only add information. By maintaining all necessary functions and information on the card, smart cards do not require access to remote databases. Growing interest in smart cards crosses barriers of geography, industry and business functions.

CREDIT CARD

• A Credit Card is Card issued by a financial company giving the holder an option to borrow funds usually at point of scale. Credit Cards is the modern system of payment . Credit card charge interest and are primarily used for short term financing. Interest usually begins one month after a purchase is made , and borrowing limits are pre- set according to the individuals credit rating.

FRONT of a typical Credit Card

Reverse side of a credit card

CHEQUE TRUNCATION TECHNOLOGY

Cheque truncation system is a cheque clearing system undertaken by the RBI for faster clearing of cheques. As the name suggests, truncation is the process of stopping the flow of the physical cheque in its way of Clearing and in its place an electronic image of the cheque is transmitted with relevant information like data on MICR band date of presentation, presenting bank etc. CTS is basically RBI’s step to improve the efficiency of the cheque clearing cycle.CTS not only leads to operational efficiency but also leads to cost effectiveness, business process re- engineering adoption of latest technology, better service etc . CTS was introduced as a pilot project in the National Capital Region in 2008 and in Chennai from 2011. CTS was operationalised across the country.

MICROFICHE

• Microfiche was invented by Carl O. Carlson in 1961 , who was an employee of the National Cash Register Company in Dayton Ohio. Microfiche is a single sheet of microfilm , six by four inches , holding hundred reduced images of document pages that are read using a microfiche reader . Microfiche is easy to use and does not require specialized knowledge or software to use it . The documents are photographed and stored in the small space of microfiche card and as said earlier a microfiche reader is required to read the contents by magnifying them . It is available in both positive and negative images, although negative images are more common.

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