question_answer 7)

What is e-banking? What are the advantages of e-banking?

Answer:

The growth of internet and e-commerce is dramatically changing every day, with the model World Wide Web and e-commerce the world is transforming into a digital global village. In simple terms, internet banking means any user with a PC and a browser can get connected to the banks website to perform the banking functions and avail the bank's services. e-banking refers to electronic banking or banking using electronic media. Thus, e-banking is a service provided by banks that enables a customer to conduct banking transactions, such as checking accounts, applying for loans or paying bills over the internet using a personal computer, mobile telephone or handheld computer. e-banking includes a range of services like Electronic Funds Transfer (EFT), Automated Teller Machine (ATM), Electronic Data Interchange (EDI), Credit Cards, and Electronic or Digital Cash. Advantages of e-banking (i) e-banking provides 24 hours, 365 days a year services to the customers of the bank. (ii) It lowers the transaction cost. (iii) It inculcates a sense of financial discipline and promotes transparency. (iv) It reduces the load on bank branches.