Online Banking in India

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The age of Google and Wikipedia has ensured that we do most of our activities online. What is absolutely incredible is you can rely for almost everything on the internet. More business than we can ever imagine is done online. The Indian banking industry has undergone unprecedented rivalry among unconventional banking organizations. The introduction of latest technologies along with the deregulation of the banking sector has attracted new players to make a foray into the industry rapidly and competently. If you consider the present age of banking, online banking has made things much easier and has saved lot of time of Bank employees as well as general public. The traditional way of waiting in a queue and filling up all the forms manually, is no hassle now for transacting with any bank.

Savings Bank Account Portability: A New Chapter

Savings Bank Account Portability is another example of life becoming easier due to online banking. The Savings Bank Account Portability will give general public an option to move their account from one bank to the other without any complication and hassle. The facility will prove to be a boon for the customers who are sick of poor services of their bank but were restraining themselves to ditch it just because they were not prepared for the unending formalities that come with opening a new bank account. Moreover, the banks will be motivated to provide better services fearing increased competition. However, there is a flip side to this too. Different banks have different operating procedures and implementing this can be a big challenge therefore.

Benefits of Online Banking

The benefits of this facility for the customers are unending. Internet banking in India is a welcome change for the customers and a money-spinning delivery network for the financial institutions. Mentioned below are some of the advantages of Internet banking in India:
  • The customer can access his account anytime and from any part of the world,
  • Attracts new customers
  • Facilitate the offering of more services
  • No monthly payments are required to forfeit for availing this service,
  • Free of charge bill reimbursement and refunds on ATM surcharges,
  • Attractive interest rates on CDs, savings, etc.,
  • Credit card service at minimal charges,
  • Simple online submissions for personal accounts, loans and credits,
  • Increase customer loyalty
  • Provide services offered by competitors
  • Reduce customer attrition
  • High-tech technical advancements in the form of intrusion detection systems (IDS) to virus control equipments have made Online Banking system fool proof and hazard free. However, regardless of the fact it is vital on the part of every customer to undertake few precautionary measures while transacting online.

Tips for Online Banking

Internet banking comes with its share of flaws and it is essential to be aware of precautions that can help you avoid landing in any undesired scenario:
  • Do not use shared computers when accessing your account
  • Do not access your bank account using vital passwords at internet parlors or any other public places to avert the hazard of data being duplicated.
  • Modify your password frequently.
  • Contact your bank instantaneously if you doubt any changes in your banking password.
  • Always log-off from your Internet banking account and close the internet browser after accessing the information.
In the present scenario, every Indian bank has this facility of internet banking. Currently most of the banks are extending their reach in rural areas to attract more customers. This gives the country's entire population to get benefited with the technology advancement. The initiation of Banks to educating people the benefits of internet banking onto the new system.

Having all above mentioned benefits, when it comes to the security of internet banking, it is the challenging problem to be faced by all the major banking portals. Every customer must aware of the security issues and protect their details from the hackers.

Last Updated on 2/14/2012