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

Answer:

Ans.     E-banking is a service provided by many banks, in which a customer is allowed to conduct/banking transactions through internet. It includes ATMs, credit cards, debit cards, mobile banking and internet banking.

Advantages of e-banking

1. To Banks

(a) It provides competitive advantage to a bank.

(b) Load on different branches gets considerably reduced due to centralised data base.

(c) Banking network is no more limited to the number of branches. It expands far and wide due to facility of internet banking.

2. To Customers

(a) It provides 24 hours, 365 days a year service to the consumers.

(b) It can be used at any place and at any time even while travelling.

(c) It reduces risk and ensures greater security.

(d) It increases financial discipline by keeping record of each and every transaction.

(e) Availability of banking facility at anytime and anywhere increases satisfaction of the consumers.