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