E- Banking, also known as electronic funds transfer (EFT) is simply the use of electronic means to transfer money directly from one account to another, rather than by cash or cheque.
There are various forms of e-banking, namely:
1. INTERNET BANKING
Internet banking is a method in which a person connected to the internet has direct access to a host computer system of a bank. This allows the user to view his/her account balance, request transfers between accounts and pay bills electronically.
2. AUTOMATED TELLER MACHINES (ATM)
An automated teller machine is an electronic computerized telecommunications device that allows the customers of a financial institution to directly use a secure method of communication to make cash withdrawals or check their account balances without the need of a cashier. To access his/her account, the customer has to insert a plastic card with a magnetic stripe.
3. TELE BANKING
By dialing a given tele banking number from anywhere the customer can access his/her account and by following the user-friendly menu, entire banking can be done through interactive voice response (IVR) system. With sufficient number of hunting lines made available, customer call hardly fails. The system is bi-lingual and has many facilities offered.
4. DIRECT DEPOSIT
It is a form of payment made by an organisation (e.g. employer or government agency) that pays a sum of money (such as salaries or pensions) through electronic transfers. Funds are transferred directly to each customer’s account.
ADVANTAGES OF E-BANKING
1. The operating cost per unit services is lower for the banks.
2. It offers convenience to customers as they are not required to go to the bank's premises.
3. There is very low incidence of errors.
4. The customer can obtain funds at any time from ATM machines.
5. The credit cards and debit cards enables the Customers to obtain discounts from retail outlets.
6. The customer can easily...