The four services covered by E-Banking are as follows: (i) EFT (Electronic Fund Transfer System) (ii) ATM’s (Automated Teller Machines) (iii) Credit Card (iv) Debit Card. Banks are now introducing electronic banking services for their customers. A number of banks such as ICICI Bank, UTI Bank, Global Trust Bank, Citibank, IDBI Bank, State Bank of India have already introduced e- banking facilities for the customers. E-banking is the outcome of technological innovations and competition.
In fact, banks have been using electronic and telecommunication networks for delivering a wide range of value added products and services. The addition of internet banking and mobile banking have revolutionised banking services.
E-banking covers the following services:
(i) EFT (Electronic Fund Transfer System):
The banks are now allowing the transfer of funds electronically. For example, a company wants to transfer wages and salaries to the accounts of her employees, it can do it electronically. Similarly, if a company wants to transfer dividend to the accounts of a shareholder it can be done without issuing cheques or drafts etc. This is the safest method for transfer of funds.
(ii) ATM’s (Automated Teller Machines):
The use of ATM’s lead to the concept of ‘anywhere’ and ‘anytime’ banking. Through the use of ATM cards, one can operate his bank account to withdraw money from any of the bank’s ATM’s installed at the nearest site. This has broken down the time and space barriers.
Bank issues a separate plastic card to each customer for availing the services of ATM. The customer has to insert the plastic card into the terminal and enter his identification code. The machine would respond to the customer’s instructions of giving cash, accepting deposit or handling other banking transactions.
(iii) Credit Card:
This is also called plastic money. The credit card holder is allowed to withdraw money without making any deposit into the bank. It is the overdraft facility allowed to the customer. The card holder may also use the card for making payments for goods and services to the suppliers having arrangements with the credit card company.
The customer using plastic money will have to deposit this amount along with the interest due to the credit card company. The credit card has photo identity and signature of the card holder and Credit Card Company or bank’s name and validity period of the card.
(iv) Debit Card:
Debit Card is issued to a client having deposits in his bank account. A debit card is also a plastic card bearing bank’s name and customer’s name identity and signatures. A debit card holder can make purchases from the retail store and make payments through this card. With the help of debit card, the point of sale computer terminal would automatically transfer money from the cardholder’s bank account to the bank account of the seller.