E- Banking
                     E- BANKING
Introduction
 Electronic banking has many names like e banking, 
virtual banking, online banking, or internet banking. 
 It is simply the use of electronic and 
telecommunications network for delivering various 
banking products and services. 
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Online Transaction
 Through e-banking, a customer can access his account 
and conduct many transactions using his computer or 
mobile phone.
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TYPES OF E BANKING
Level 1 
 This is the basic level of service that banks offer 
through their websites. 
 Through this service, the bank offers information about 
its products and services to customers. Further, some 
banks may receive and reply to queries through e-mail 
too.
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Level 2
 In this level, banks allow their customers to submit 
instructions or applications for different services, check 
their account balance, etc. 
 However, banks do not permit their customers to do 
any fund-based transactions on their accounts.
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Level 3 
 In the third level, banks allow their customers to 
operate their accounts for funds transfer, bill 
payments, and purchase and redeem securities, etc.
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Banking Websites
 Informational Websites – These websites offer general 
information about the bank and its products and 
services to customers.
 Transactional Websites – These websites allow 
customers to conduct transactions on the bank’s 
website.
Source: www.toppr.com
Importance of e-banking 
 Lesser transaction costs – electronic transactions are 
the cheapest modes of transaction
 A reduced margin for human error – since the 
information is relayed electronically, there is no room 
for human error
 Lesser paperwork – digital records reduce paperwork 
and make the process easier to handle. Also, it is 
environment-friendly.
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Importance of e-banking for 
Customers
 Convenience – a customer can access his account and 
transact from anywhere 24x7x365.
 Lower cost per transaction – since the customer does 
not have to visit the branch for every transaction, it 
saves him both time and money.
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Importance of e-banking for 
Businesses
 Account reviews – Business owners and designated 
staff members can access the accounts quickly using 
an online banking interface. 
 Better productivity – Electronic banking improves 
productivity. It allows the automation of regular 
monthly payments and a host of other features to 
enhance the productivity of the business.
Source: www.toppr.com
Importance of e-banking for 
Businesses cont.
 Lower costs – Usually, costs in banking relationships 
are based on the resources utilized. 
 Reduced fraud – Electronic banking provides a digital 
footprint for all employees who have the right to 
modify banking activities.
Source: www.toppr.com