internet Banking: Nowadays, whenever people go to the bank to open a bank account, they already say that they want the service of net banking along with an ATM card. This is because they know very well what Internet banking is and how it works.
People often get many types of work done through banks. For which they have to make several trips to the bank and stand in long lines for hours. But today’s youth do not want to stand in long lines and want all the work we do by going to the bank to be done sitting at home.
This is the reason why everyone has started using internet banking. Even though all the work cannot be done through Internet banking, many important tasks for which one has to stand in queues can be completed in minutes sitting at home with its help. We will learn further in this post what Internet banking is and what its benefits are.
Internet banking is a facility provided by the bank through which customers can get all types of information related to their accounts from their homes.
You can send money to anyone with the help of internet banking from your mobile device or computer while sitting at home. We will discuss further how to send money through Internet banking and how it works, but before that, let us know what Internet banking is.
What Is Internet Banking?
Internet banking allows a user to conduct financial transactions through the Internet. Internet banking is also called online banking or web banking.
With its help, all those tasks for which one had to visit banks, shopping malls, electricity departments, etc., can be completed very easily from home using one’s smartphone or computer. Paying the electricity bill is a huge headache which we can complete online very easily while sitting at home.
Also, we can do mobile recharge or shopping from home itself. If you want to send money to a relative, there is no need to go to the bank for that either.
In online banking, consumers do not need to go to the office at all to complete their basic banking transactions. This means that they can complete their tasks whether they are at home, at work, or while traveling.
To use this service, the consumer has to go to the bank and apply for the online banking service, after which the online banking is started by the bank.
After registration, the bank gives its customer a user ID and password, using which the customer can access his account from anywhere and also use the facilities provided in it.
Different types of facilities are provided in online banking by different banks, but basic services like transferring money and paying bills are available in all of them.
The bank not only provides the facility to open its UCO online account and apply for a credit card,. Many banks also provide the facility to change the address to stop the payment after placing the order.
Checks can now be deposited online through a mobile app. The customer only has to take a photo of the front and back of his check, enter the amount, and the process is complete.
In net banking, the facility of making traveler’s cheques, bank drafts, and some wire transfers is not provided. To complete these services, the bank representative must be present.
How does Internet banking work?
As we already know, Internet banking is also called e-banking, 3 parties are involved in it: the bank, the consumer, and the merchant. In some situations, when the bank and the consumer together complete the transaction, it is the consumer who initiates the transaction.
For this, he does either online or ATM transactions, after which the request is either approved or rejected depending on his ATM card and its details. When the process is completed, the funds are transferred from Jhumar to the account of the other consumer.
To use online banking, one has to first go to one’s bank branch and apply, after which one is given a user ID and password.
E-registration is done at the time of applying for online banking, which in a way provides security to the account.
Whenever the consumer starts a transaction, only the OTP number and card number are asked to complete it. This security is given in different ways by different banks; the transaction can be completed only after the verification is completed.
The transaction cannot be completed successfully without knowing the user ID and password. The OTP coming from the mobile number gives a lot of security to the account.
This is a feature that we get along with the bank account, and through this, we can access our account in this way:
1. A computer through which we can go to the bank account through the website.
2. A phone through which we can open websites and apps.
3. A tablet can open both the website and the bank’s app.
How Do You Start Net Banking?
For this, first of all, you will have to go to the branch of the bank where you have your account and ask whether they provide an online banking facility. Or can you tell me the process by which you can start this service?
If your bank does not provide those facilities, then you can look for a better option. This can be started in two ways.
Once you find out that this facility can be availed of in your bank, you will have to fill out a registration form and also provide your mobile number for OTP, after which you will be given the most common user ID and password.
These details are required to use internet banking.
- Your username or customer number
- Password
- Additional information, such as birthplace or date of birth,
After obtaining this information, keep it recorded in a secret and safe place. Do not write this information on the debit card or passbook. Whenever you go to log in to your account, you will need ID, etc.
There is another method that is not available at all banks. For this, you will have to go to the official website of the bank go to the online banking page, and give the requested information, after which the details will be sent to you. In this way, your account will be registered, and you can use net banking.
History Of Internet Banking
Along with the World Wide Web, Internet banking also came into existence, and with its development, it has also developed.
Banking database programmers came up with the idea of conducting online banking transactions sometime in the 1980s. Due to online shopping, the concept of online banking services was stopped.
Shopping companies have increased the use of credit cards through the Internet. Many banks started building data warehousing villages to reduce the number of employees working there.
During the development of ATM, these databases were used very extensively.
In the 1980s, organizations in Europe and the United States considered the facility of home banking and started working on it.
In the beginning, the internet was not so well developed that banking attracted customers on a large scale. Fax machines and telephones were used.
In 1983, the first Internet banking service was introduced at the Nottingham Building Society, commonly referred to as LBS.
This service formed the basis for most Internet banking facilities. After which, this service started in full form.
At that time, this service was not well developed, and the transactions done by the account holders were limited to a certain limit.
The facility, introduced by the Nottingham Building Society, is said to have been derived from a system called Prestal. Which was deployed by the Postal Service Department of the United Kingdom.
Online banking service was started for the first time in October 1994. This service was developed by Stanford Federal Credit Union Financial Institution.
Due to the well-developed system, online banking services are becoming more accurate. Although it also has some disadvantages, it has emerged as a revolution in the banking sector.
Advantages Of Internet Banking
We can sign in to our bank account with the help of our internet browser, and after this, we can do the following:
To check our balance: We can check our balance so that we can know how much money is in our account.
To check transaction and statement: We can see the statement or transaction from which we can also know to some extent which transaction we have done and which one we have not.
To send money: We can send money to our friend or family member’s bank account with the help of this service.
To pay the bill: We all know very well how important it is to pay any type of bill on time. For this, we have to go to the bill payment institute, but online banking saves us from this trouble and also gives us the facility to pay the bills while sitting at home.
Direct Debit and Standing Orders: This helps a lot in making regular payments, and the money is automatically debited on a fixed date.
Send and receive secure messages: You can send and receive secure messages from your bank.
Free Service: This service is free. This service is provided for free use by almost all banks.
In Short
Through this post, you also learned how to start net banking and what its history is. Apart from this, you also learned what the benefits of Internet banking are. Nowadays, youth do not like to open bank accounts without it. Some people are very scared of internet banking, they have many types of questions in their minds, which is why they run away from it.
Friends, how did you like this post: What is internet banking and what are its benefits? We hope that you have gotten the necessary information you were looking for through this post, and if you want to know something else, you can ask by commenting.
The world is changing rapidly, and people have also changed their lifestyles with time. Whatever does not change with time today remains behind. This is because the person who uses net banking today does not even have to think about going to the bank, whereas another person has to spend hours in the bank to complete the same task.
We hope that you will find this post very beneficial, and if this post has helped you then please share it with your friends and relatives.
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