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    Presented By-Ranjeet Kumar Yadav

    Uploaded by

    Kumar Ranjeet
    Internet banking allows customers to perform banking transactions electronically over the internet. It was first introduced in the United States in 1994 and in India by ICICI Bank in 1997. RBI classified internet banking into three types - information only, electronic information transfer, and fully electronic transactional systems. Internet banking provides benefits for banks like lower costs and increased customer base, and for customers like convenience of 24/7 banking. However, security risks like fraudulent websites and disclosure of personal details pose disadvantages. Banks and customers both need to take precautions to prevent security issues with internet banking.

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    Presented By-Ranjeet Kumar Yadav

    Uploaded by

    Kumar Ranjeet
    117 views23 pages
    Internet banking allows customers to perform banking transactions electronically over the internet. It was first introduced in the United States in 1994 and in India by ICICI Bank in 1997. RBI classified internet banking into three types - information only, electronic information transfer, and fully electronic transactional systems. Internet banking provides benefits for banks like lower costs and increased customer base, and for customers like convenience of 24/7 banking. However, security risks like fraudulent websites and disclosure of personal details pose disadvantages. Banks and customers both need to take precautions to prevent security issues with internet banking.

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    Internet Banking

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    Internet banking allows customers to perform banking transactions electronically over the internet. It was first introduced in the United States in 1994 and in India by ICICI Bank in 1997. RBI classified internet banking into three types - information only, electronic information transfer, and fully electronic transactional systems. Internet banking provides benefits for banks like lower costs and increased customer base, and for customers like convenience of 24/7 banking. However, security risks like fraudulent websites and disclosure of personal details pose disadvantages. Banks and customers both need to take precautions to prevent security issues with internet banking.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    117 views23 pages

    Presented By-Ranjeet Kumar Yadav

    Uploaded by

    Kumar Ranjeet
    Internet banking allows customers to perform banking transactions electronically over the internet. It was first introduced in the United States in 1994 and in India by ICICI Bank in 1997. RBI classified internet banking into three types - information only, electronic information transfer, and fully electronic transactional systems. Internet banking provides benefits for banks like lower costs and increased customer base, and for customers like convenience of 24/7 banking. However, security risks like fraudulent websites and disclosure of personal details pose disadvantages. Banks and customers both need to take precautions to prevent security issues with internet banking.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 23

    Internet Banking

    Presented by-
    Ranjeet Kumar Yadav
    What is Internet banking?
    A system allowing individuals to perform banking
    activities at home, via the internet.
    The automated delivery of new and traditional banking
    products and services directly to customers through
    electronic, interactive communication channels.
    Some online banks are traditional banks which also
    offer online banking, while others are online only and
    have no physical presence.
    Development of E-banking
    The concept of Internet banking has been simultaneously
    evolving with the development of the world wide web.
    Programmers working on banking data bases came up with
    ideas for online banking transactions, some time during the
    1980's.
    The online shopping promoted the use of credit cards
    through Internet.
    The first online banking service in United States was
    introduced, in October 1994.
    Development of E-banking
    Contd…
    The service was developed by Stanford Federal Credit
    Union, which is a financial institution.
    In May 1995 : Wells Fargo - the first bank in the world to
    offer customer access to their accounts over the
    internet(allows customer to see their accounts online)
    The online banking services are becoming more and more
    prevalent due to the well developed systems
    Development of E-banking
    in India
     ICICI was the first bank to initiate the Internet
    banking revolution in India as early as 1997
    under the brand name 'Infinity‘.
     ICICI Bank kicked off online banking way
    back in 1996 . But even for the Internet as a
    whole, 1996 to 1998 marked the adoption
    phase, while usage increased only in 1999-
    due to lower ISP online charges, increased
    PC penetration and a tech-friendly
    atmosphere
    RBI & E-Banking
    The Reserve Bank of India constituted a
    working group on Internet Banking.
    The group divided the internet banking
    products in India into 3 types based on the
    levels of access granted.
    They are:- i) Information Only System:  ii)
    Electronic Information Transfer System:   iii)
    Fully Electronic Transactional System:
    Information Only System
    General purpose information like
    interest rates, branch location, bank
    products and their features, loan and
    deposit calculations are provided in the
    banks website.
    There exist facilities for downloading
    various types of application forms.
    The communication is normally done
    through e-mail.
    Contd..
    There is no interaction
    between the customer and
    bank's application system.
    No identification of the
    customer is done. In this
    system, there is no possibility
    of any unauthorized person
    getting into production systems
    of the bank through internet.
    Electronic Information
    Transfer System
     The system provides customer- specific
    information in the form of account balances,
    transaction details, and statement of accounts.
     The information is still largely of the 'read only' 
    format. Identification and authentication of the
    customer is through password.
     The information is fetched from the bank's
    application system either in batch mode or off-
    line.
     The application systems cannot directly access

    through the internet.


    Fully Electronic Transactional
    System
    This system allows bi-directional capabilities.
    Transactions can be submitted by the customer for online
    update.
    This system requires high degree of security and control. In
    this environment, web server and application systems are
    linked over secure infrastructure.
    It comprises  technology covering computerization,
    networking and security, inter-bank payment gateway and legal
    infrastructure .
    Automated Teller Machine
    (ATM)
    ATM is designed to perform the most
    important function of bank.
    It is operated by plastic card with its
    special features.
    The plastic card is replacing cheque,
    personal attendance of the customer,
    banking hours restrictions and paper
    based verification
    Different services provided
    under e-banking
    ONLINE BILL PAYMENT
    SHOPPING
    TICKET BOOKING
    PRE PAID MOBILE
    RECHARGE
    INVESTMENT SERVICES
    ONLINE APPLICATIONS
    Service Provided By SBI
    Self-account funds transfer across India.

    Third party transfers in the same branch

    New account opening

    New Cheque-book request

    Railway tickets booking

    Utility bill payments State Bank Of India


    LIC and other insurance premium payments

    Credit card dues payments

     Deposit your taxes

    Donations to Red Cross and such other organisations


    Service Provided By ICICI
    BILL PAYMENT
    FUND TRANSFER
    ACCOUNT INFORMATION
    SMART MONEY ORDER SERVICE REQUEST
    CONVERT TO EMI A/C TO CARD TRANSFER
    PREPAID MOBILE RECHARGE
    ACCOUNT TRANSFER
    Advantages of E-banking
    Benefits for Banks
    Benefits for Small to Medium
    Businesses
    Benefits for Customers
    BBenefits for Banks
    Larger customer coverage
    Reducing the costs of operations
    Promoting their services and
    products internationally
    Increasing the customer
    satisfaction and providing a
    personalized relationship with
    customers
    Benefits for Small to Medium
    Businesses
    To run its operations
    more effectively
    Lower cost than
    traditional financial
    management mechanisms
    Benefits for Customers
    Convenience 24 hours a day, seven days a week
    Cost Reducing transfer fees
    Speed Faster circulation of assets
    Competitiveness - Fostering competition in financial
    market
    Communicate easily
    Abolishing the uses of paper
    Offering one-stop-shop solutions
    Disadvantages OF E-banking
    A need for customer skill to deal with computers and
    browsers.
    Many people who are not comfortable with computers and
    the Internet, often find it difficult to use internet banking
    For beginners, internet banking is really time consuming

    In many instances, a simple mistake, like clicking a wrong


    button, may create a big problem.
    Security Risk
    Increasing number of fraudulent bank websites
    For Eg. A suspicious bank
    website:www.sbionline.com Original bank
    websitewww.onlinesbi.com
    Fake emails purporting to be sent from banks

    Email send from Fraudulent bank

    Verify the personal information

    Guide customer enter the fraud link

    Disclosing their ATM card numbers and their passwords


    Persecutions For Bank
    Should provide specific guidance to their
    customers
    Should take the adequate measures to
    ward off any problems related to the
    security of internet banking
    Online banking tutorials should be
    provided to help familiarize people with
    internet banking
    Persecutions For Customers
    Should not disclose their customer IDs
    (e.g., account numbers) or passwords to
    anyone else.
    Periodically change their passwords

    Should promptly log out from the service

    Should regularly check their account


    balances and statements to identify
    unusual transactions.

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