Introduction to Banking and E-Banking
Banking is one such activity that helps keep individuals afloat in terms of Money. With the help of the many financial institutions and their services, it is very convenient for many reasons. These are helpful to cover expenses, save money, make a profit, and much more.
While E-Banking or Electronic Banking means ‘Internet Banking’ or simply can be called ‘Net Banking’. This banking system works in the form of electronic transfer of money and other related banking transactions. In this article, we will understand the meaning of Banking and E-Banking, and we will also learn about the functions of Banking.
What is Banking?
Banking is essentially an activity that is opted to be performed by not only individuals but also countless entities. The Banks in a country, state, or city safeguard the Money from their customers and then lend it to others. This creates a balance within the economy and makes sure that one of the individuals benefits from it.
What is E-Banking?
E-Banking is Banking with the only difference being that all the transactions take place via electronic modes. With many innovations in terms of technology, it is safe to say that this has made life pretty convenient for people. The reason is very simple straightforward. With the help of E-Banking, one can easily do several transactions at any time of the day.
Functions of Banking
Banking plays a very crucial role in our lives. And it is due to that one can take advantage of a few of the functions.
Here is a list of the functions of Banking that are made possible with the help of Banking:
They accept the deposits from their numerous customers and help them save, pay, etc. from the various types of accounts that are available. They have to pay interest to their customers every quarter.
They grant loans to their customers after checking their eligibility. They have to charge interest from their customers and ensure that the loan amount is paid in full in due time.
They offer their customers various types of offers which can make them use the services of the Bank even more. This way the customers also get many advantages like offers, discounts, cashback, etc. after they use the Bank’s cards.
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Students now know what is meant by Banking and what is meant by E-banking. If you want to know more about Commerce related topics, enrol with us now!
Apart from this, I hope this content was helpful for the students to understand the banking system and the functions related to banking, further check out the frequently asked questions related to this topic in order to have a better understanding.
FAQs on Banking and E-Banking
1. Why is E-Banking important in today's world?
Online Banking links customers to businesses irrespective of their geographical location. It allows companies to test new services and products, conduct market research, make financial calls at minimal costs, and build new business contacts. While easy access is an availing feature, E-Banking is convenience guaranteed. Despite the convenience offered, E-Banking holds no hidden fees associated with the online transactions. Online Banking ensures a highly secure platform with resilient encryption that protects the client's details without any security breach like online frauds and account hacking.
2. What are a few examples of E-Banking services available in India?
ICICI Bank was the first Indian Bank to implement Online Banking system in India, ad with its advancement, all majors banks in India offer Online Banking services as follows:
Electronic Funds Transfer System
Door-Step Banking
Automated Teller Machines
Smart Cards, Telebanking
Internet Banking
Electronic Clearing Cards
Mobile Banking
Telephone Banking
3. Are all types of banks the same?
When it comes to the various types of Banks in India, whether we talk about Commercial Banks or public sector Banks, they all have the same basic functionings. They help people save their Money as various deposits. They also have people by lending them money at the time of need. Banks like RBI, Specialized Banks, etc. differ in terms of the objectives that they have in terms of keeping the balance in the economy. There are even some to which ordinary people cannot have access.
4. What is the best and safest way to save money and earn profit?
There are many ways in which people can save money with banks. Although many are risky where the risk only depends on the magnitude of profit one is supposed to get. If the profit percentage is more, then the risk will be more as well. This way, the best and safest way would be to open a savings account, RD account, or FD account, which can help one in keeping their money safe while also earning interest at regular intervals.
5. Do people still opt for Physical Banking?
Yes, there are a majority of the individuals who still go to Banks and opt for Physical Banking services. The reasons for this could be the following:
Some people are not comfortable with online Banking methods and are comfortable with being physically present in a bank for their transactions.
There is a demographic which does not have much knowledge regarding the ways they can do several transactions via online methods.
Due to security reasons too, some people opt for Physical Banking as their safest option.
6. What are the advantages of E-Banking?
It is right from the very beginning that E-Banking has shown its many advantages to the people opting for such an option. Here, we have a few of the advantages that you may also experience right away:
The option enables one to do the transactions at any point of time, 24 x 7.
E-Banking is a way to do instant payments without waiting to take the cash or check in hand and deliver it.
People can also opt for various other services like opening and closing their FDs or RDs.
It allows people to purchase securities as well.
Individuals also have the option to get instant loans via the E-Banking methods.
7. Is E-Banking easy?
E-Banking is easy or not totally depends on one’s proficiency with technology. The new generations are fairly good at understanding the functions as well as features of E-Banking.
However, it is very easy. With just a few clicks on one’s phone or computer, one can take care of their funds. One of the most concerning financial matters for an individual is the monthly bills they have to pay. With the help of E-Banking, they can do that in an instant.