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What is E Banking?

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The growth of Internet and e-commerce

is dramatically changing everyday

life, with the world wide web and

e-commerce transforming the world

into a digital global village. The latest

wave in information technology is

internet banking. It is a part of virtual

banking and another delivery channel

for customers.

In simple terms, internet banking

means any user with a PC and a

browser can get connected to the banks

website to perform any of the virtual

banking functions and avail of any of

the bank’s services. There is no human

operator to respond to the needs of the

customer. The bank has a centralised

data base that is web-enabled. All the

services that the bank has permitted

on the internet are displayed on a

menu. Any service can be selected and

further interaction is dictated by the

nature of service.

In this new digital market place

banks and financial institutions have

started providing services over the

internet. These type of services provided

by the banks on the internet, called

e-banking, lowers the transaction cost,

adds value to the banking relationship

and empowers customers. e-banking

is electronic banking or banking using

electronic media. Thus, e-banking is a

service provided by many banks, that

allows, a customer to conduct banking

transactions, such as managing

savings, checking accounts, applying

for loans or paying bills over the

internet using a personal computer,

mobile telephone or handheld

computer (personal digital assistant)

The range of services offered by

e-banking are: Electronic Funds

Transfer (EFT), Automated Teller

Machines (ATM) and Point of Sales

(PoS), Electronic Data Interchange

(EDI) and Credit Cards Electronic or digital cash