Answer the following questions in short:
What is e-banking?
ANSWER:
E-banking means electronic banking (also known as online banking or virtual banking). Through e-banking, a customer can perform banking transactions such as transferring money from one account to another, checking account balance, making payments and applying for loans. These services are provided by commercial banks to their account holders so that they can easily perform banking transactions online from anywhere and at any time.
The following are some of the ways in which e-banking can be done:
i. Automated teller machines (ATMs) - These are automatic money vending machines that enables the user to conduct financial transactions without the need of human cashier. The bank customers can withdraw money anytime from the ATMs.
ii. Credit cards - They allow the card holders to make purchases through borrowings from banks, without making any deposits to banks. They are also known as plastic money.
iii. Debit Cards - With the help of a debit card, a person can make a purchase and instruct the bank to automatically transfer the money to the seller's account.
iv. Electronic funds transfer (EFT) - Under this facility, funds can be electronically transferred from one bank account to another.
v. Core banking - Core banking solution (CBS) is a network of branches that enables customers to operate their accounts and use banking services from any branch of the bank on the CBS network. The customer is no more the customer of a single branch. He/she becomes the bank’s customer.
vi. Internet banking - This facility permits the customers to perform banking transactions on the internet. Through internet banking, the customers can transfer money, make fixed deposits, collect bills, etc without visiting bank.
