E-banking refers to electronic banking. E-banking involves information technology based banking. Services are delivered through the computer/telephone based system. This system gives a lot of relief to customers as; they need not require visiting the bank branches every time. E-banking is also called online banking and internet banking.

Online banking covers the following services.

  • Mobile/ internet/telephone banking
  • Automated teller machine
  • Credit Card  and Debit card
  • Smart card
  • Electronic fund transfer etc.

Internet banking: To use this facility, the customer would go to the financial institution’s website, and enter the customer number and password. Some financial institutions have also set up additional security steps to access the customers account .

Automated teller machine (ATM): On ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN). Using an ATM, customers can access their bank accounts in order to make cash withdrawals, debit card cash advances, and check their account balances as well as purchase pre-paid mobile phone credit.

Credit Card and Debit Card: A Credit Card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder’s promise to pay for them. The issuer of the card creates a revolving account and grants a line of credit to the consumer from which the user can borrow money for payment to a merchant or as a cash advance to the user. Debit Card is an electronic card issued by a bank which allows bank clients to access to their account to withdraw cash or pay for goods and services. This type of card, as a form of payment, also removes the need for cheque as the debit card immediately transfers money from the client’s account to the business account.

Smart Card: It is a plastic card is with embedded microprocessor chip, electronic memory, and a battery. Used for information storage and management and authentication, it looks like credit card but may not have a magnetic stripe on its back. Of the several types of smart cards, some are contact-less and do not require to be swiped through a magnetic stripe reader whereas others require contact with the reader.

Electronic Fund Transfer: Electronic fund Transfer provides for electronic payments and collections.EFT is safe, secure, efficient and less expensive than paper cheque payment and collection.RBI ETF is a Scheme introduced by Reserve Bank of India (RBI) to help banks offering their customers money transfer service from account to account of any bank branch to any other bank branch in those places where ETF services are offered. The ETF system presently covers all the branches of 27 public sector banks and 55 Scheduled Commercial Banks at 15 centers i.e. (Ahmadabad, Bangalore, Bhubaneswar ,Kolkata,Chandigarh,Chennai,Guwahati,Hyderabad,Jaipur,Kanpur,Mumbai,Nagpur,New Delhi, Patna and Thiruvananthpuram )