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There are various benefits of e-banking

provided to customers which are:

(i) e-banking provides 24 hours,

365 days a year services to the

customers of the bank;

(ii) Customers can make some of the

permitted transactions from office

or house or while travelling via

mobile telephone;

(iii) It inculcates a sense of financial

discipline by recording each and

every transaction;

(iv) Greater customer satisfaction by

offering unlimited access to the

bank, not limited by the walls of the

branch and less risk and greater

security to the customer as they

can avoid travelling with cash.

The banks also stand to gain by

e-banking. The benefits are:

(i) e-banking provides competitive

advantage to the bank;

(ii) e-banking provides unlimited

network to the bank and is not

limited to the number of branches,

Any PC connected to a modem and

a telephone having an internet

connection can provide cash

withdrawl needs of the customer;

(iii) Load on branches can be

considerably reduced by

establishing centralised data base

and by taking over some of the accouing functions.


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... (More)


The focus of banking is varied, the

needs diverse and methods different.

Thus, we need distinctive kinds of

banks to cater to the above-mentioned complexities.

Banks can be classified into the


1. Commercial banks

2. Cooperative banks

3. Specialised banks

4. Central bank

(i) Commercial Banks: Commercial

banks are institutions dealing in

money. These are governed by Indian

Banking Regulation Act 1949 and

according to it banking means

accepting deposits of money from the

public for the purpose of lending or


Cooperative Banks: Cooperative

Banks are governed by the provisions

of State Cooperative Societies Act and

meant essentially for providing cheap

credit to their members. It is an

important source of rural credit i.e.,

agricultural financing in India.

(iii) Specialised Banks: Specialised

banks are foreign exchange banks,

industrial banks, development banks,

export-import banks catering to

specific needs of these unique activities.

These banks provide financial aid to

industries, heavy turnkey projects and

foreign trade.

(iv) Central Bank: The Central bank

of any country supervises, controls and

regulates the activities of all the

commercial banks of that country. It

also acts as a government banker. It

controls and coordinates currency and

credit policies of any country. The

Reserve Bank of India is the central

bank of our country.