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E-BANKING
Electronic Banking is more commonly referred to as internet banking or simply netbanking. The
technology has paced many steps. We can now effortlessly transfer money online from one bank
account to another. In earlier days, cheques were used to transfer money and it took 2–3 days for
the clearance. If cheques were spoiled, mutilated or lost then the transfer took more time as a fresh
cheque was required again. With e-banking, you can transfer funds easily from one account to another
through computer, laptop and even with your smartphone. Different types of E-banking are: Online
Banking, Mobile Banking, ATM Banking, Direct Deposit, Electronic Fund Transfer (EFT), Electronic Bill
Payment and Online Investing.
ATM facility is also a part of e-banking where you can withdraw cash from any ATM machine and the
amount will be debited from your bank account automatically.
Following are the features of E-banking:
Account Management Fund transfer
Bill payment Online statements and alerts
E-banking is useful for bankers as well as customers. The bankers are benefited by way of:
Less transaction cost Less chances of human error
Reduction in fixed infrastructure cost Customer loyalty and satisfaction
Reduced paper work
The customers are benefited by way of:
Convenience of banking No geographical restrictions
Lower costs Reduced chances of fraud
24/7 availability
Modes of Payment
All the e-commerce websites provide various modes to make payment of the product or service that
you want to buy. Some of them are as follows:
Debit or Credit Card: E-commerce websites allow us to make payment by using our credit or debit
card. In case of credit card, we are provided with a credit limit by the bank which we can use to
purchase products. To avoid the online fraud, each credit or debit card has a three-digit unique
secret Card Verification Value (CVV) number on the back side of it. Now, bank also sends a One
Time Password (OTP) on your registered mobile number to verify the authenticity.
Debit cards may look similar to credit cards, but their mechanism is entirely different. When a debit
card is used, funds are immediately withdrawn from an individual's account. Debit card transactions
can be declined if you do not have enough money in your account.
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