PROJECT

ON
INTERNET BANKING

Submitted to Submitted by
Dr. A.V. Shukla Mohit Sharma
MIB 3rd sem
Roll no 031
Internet banking
Net banking is a web-based service that enables the banks authorized
customers to access their account information. It allows the customers to log on to the
banks website with the help of bank’s issued identification and personal identification
number (PIN). The banking system verifies the user and provides access to the requested
services, the rage of products and service offered by each bank on the internet differs
widely in there content. Most banks offer net banking as a value-added service. Net
banking has also led to the emergent of new banks, which operate only through the
internet and do not exists physically, Such banks are called “virtual” banks or “Internet
Only” banks.

A couple of years ago, there was a belief even among bankers that customers opening
new accounts wanted the online banking facility, just to ‘feel good’ and very few of them
actually used that services. Today, bankers believe that the trend from ‘nice to have’ is
changing to ‘need to have’ .after all it depends on how busy a person is.
Services provided through Internet Banking

• Account information
• E-cheques (Online Fund Transfer)
• Bill Payment Service
• Requests And Intimations
• Demat Account share trading

Account information

E-Cheques (Online Fund Transfer)

Customer can transfer funds:

Transfer funds between accounts, even if they are in different branches’ cities Customer
can also transfer funds to any person having an account with the same bank anytime,
anywhere, using third party funds transfer option.

Bill Payment Service

Banks Bill Payment is the easiest way to manage bills. A/c holder can pay their regular
monthly bills i.e. telephone, electricity, mobile phone, insurance etc. at anytime,
anywhere for free.

Saves time and effort. Make bill payments at customer’s convenience form their home or
office.
Lets a/c holders check their hill amount before it is debited form their account. No debits
to account without their knowledge.

No more missed deadlines, no more loss of interest – a/c holder can schedule their bills in
advance, avoid missing the bill deadlines as well as earn extra interest on their money.

Track payment history – all payments to a biller are stored automatically for future
reference.

No queuing up at collection centers or writing cheque any more! Just a few clicks and
customers account will be debited for the exact amount they ask.

Requests And Intimations

Can electronically submit a request for:

Cheque-book
Stop payment instructions
Opening a fixed deposit
Opening a recurring deposit
Intimate for the loss of ATM card
Register online for phone and mobile banking
Cheque status
Online application for debit card
Issue a DD or a Banker’s cheque form account at special rates. Just select the account
tobe debited form and give details of the amount, location and beneficiary. The
demanddraft will be couriered to a/c holder at their mailing address.
Customers can get their applications for issuance of Letters of Credit and Bank
Guarantees processed online
Book your Railways Ticket Online

Demat Account and Share Trading

Demat Account

Demat is commonly used abbreviation of ‘Dematerialisation’, which is a process

whereby securities like share, debentures are converted from the ‘material’ (paper
documents)unto electronic data and stored in the computer of an electronic Depository.
A depository is a security ‘banks,’ where dematerialized physical securities are held in
custody, and form where they can be traded. This facilitates faster, risk-free and low cost
settlement.
Share Trading

In share trading a customer can buy and sell securities online without stepping into a
Broker’s office. Once the share are dematerialized then the trading can be done from
home or office. As demat a/c are directly linked to the customer’s bank a/c, so there is no
need to write cheque for the payments or to fill up the slips to deposit the cheque.
Amount for the purchase and sale of securities is automatically debited or credited to
their bank a/c. it also brings the same convenience while investing in Mutual funds also
Hassle free and Paperless.

ADVANTAGES

Convenience
 From the privacy of your home, you can transfer funds, check your bank balance and
pay your bills at any time of the day or night.

Expediency
 Online banking is frequently faster than "snail mail." Many payments can be made in
24 hours, which the U.S. Postal Service cannot match.

Scheduling Payments
 You can schedule a transaction today but delay the processing until a later date. This
enables you to pay your bills in once without the money immediately leaving your
account.

Learning Curve
 Many people feel uncomfortable with trying something new, and they feel nervous
about working through a learning curve when their money is involved.

Paperless
 Online banking is paperless. Paperless banking is environmentally friendly, but many
people feel more comfortable having a paper trail when they pay their bills.
DISADVANTAGES

Identity Confirmation
1. Federal regulations require that financial institutions confirm each customer's
identity. This may present a logistical issue, as copying and faxing documents is
sometimes necessary.

Security Concerns
2. With hacking and identity theft on the rise, Internet banking customers have to place
a certain amount of trust in the bank that their account information and personal
information are safe.

Customer Service
3. If you bank at a traditional bank, you can go to the bank and speak to someone face to
face about your problem but, with an Internet bank, you will likely spend a lot of time
on the phone being passed around and placed on hold.

Accessibility
4. If the internet goes down in your area or the area of the banking office, you will be
unable to access your accounts. This includes being unable to withdraw money from
ATMs or to use your debit card.

Fees
5. Many Internet banks don't have ATMs, which means you will have to pay ATM fees.
This can cost you more money than paying the regular monthly fees at a brick and
mortar bank.
How Online Banking Works
Opening Accounts

 Opening an account for an online bank requires the account holder to either sign up at
a local branch, send in a paper application or apply directly using the online banking
website. Typically, the applicant will be required to supply a full name (including a
middle name), date of birth, personal address and telephone contact information. He will
also need to provide a Social Security number (or government identification), work
telephone and a driver's license number or military identification with issuing state and
expiration date. Several days are required to load the information and set up the account
to ensure the online security checks are working properly. Most banks have the option of
accessing the account by cell phone, computer or PDA
.
Services

 Once the general account has been set up, the user is able to select features. Users
enter by logging onto the main site and entering a password. Access is then available to
checking and savings accounts. Banks allow account holders to transfer money between
savings and checking or checking to checking. This can also be done between accounts at
different banking institutions. If the account is used for online and paper, many banks
offer online scans of paper checks. Most banks also offer bill-paying services. Integrated
budgeting and copyrighted services, such as Wells Fargo's service called "My Savings
Plan," are available from many banks. This service allows a set amount of funds to be
removed each month. Many banks, including Merchants & Southern Bank, allow the
account holder to integrate files from Quick Books, Microsoft Money and Quicken into
their online account.

Security

 Banks require security information to verify the user. The mother's maiden name or
the last home address is usually used. Many banks allow users to also record a security
word. This information is used if the bank believes that account security has been
breached. A telephone call from an individual banker will substantiate identity and the
account will then be reopened for online access. Passwords are typically issued using a
combination of letters and numerals, but these may be changed once the information
arrives via snail mail at the physical address listed in the contact information. Many
banks also allow the user to select an online security image (called a security or site key)
as a form of online bank identification. The site key is one way to quickly identify an
authentic banking site. Another way online banks incorporate security is with the use of
secure websites, which use special security programming to block others' viewing
information and are easily identified by the use of an "s" in front of the web address.
Internet Banking Safety Tips
Select a Strong Password

 A strong password consists of at least eight characters and contains uppercase letters,
lowercase letters and numerals. Select a strong password when creating an online
banking account. The more complex a password is, the more difficult it is to guess. Do
not use the same password for more than one bank, and do not write any of your
passwords down. Change them periodically.
‘
Install Security Software

 Many malicious software programs exist to monitor keystrokes and "phone home"
periodically with the results of that monitoring. This type of virus is a "key logger." To
reduce the possibility of having your passwords stolen by a virus, install an Internet
security program that provides comprehensive protection from viruses and password
theft. Select a program recommended by several trusted independent authorities.

Do Not Click Email Links

 Occasionally, you may receive an email purporting to be a "security notification"

from your bank. The email explains that there is a problem with your account, and that
you need to click a link to log in to your bank account for more information. This is a
password theft technique called "phishing." If you click the link, a website disguised to
look like your bank's website appears. The website steals your password, and then
forwards you to your bank's real website to cover its tracks. Your bank will never send
you an email asking you to click a link to log in. Always browse to your bank's website
by typing the address manually.

Using Wireless Access Points

 Avoid banking from a wireless access point unless the access point utilizes a strong
encryption scheme such as Wi-Fi Protected Access (WPA) or WPA2. Older encryption
schemes such as Wired Equivalent Privacy (WEP) are decipherable with hacking
software. Once the encryption key is cracked, a hacker can view your transmissions and
intercept sensitive information.
Banking with Mobile Devices

 Avoid using any mobile banking application not provided or endorsed by the bank.
Banking applications for mobile phones often come from third-party sources, and unless
you have the ability to view the application's source code, you have no way of knowing
what that application might be doing with your personal information. If you do use your
mobile phone for banking, configure the application not to save your password.
Otherwise, losing your phone or having it stolen could cause a major security breach.

Pay Attention to Transactions

 Pay close attention to your transaction history online. If you see a transaction that you
do not remember approving--even if the transaction is small--contact your bank's loss
prevention department immediately. In credit card theft, a common technique is to check
a card number for validity by attempting to complete a small transaction. If it goes
through, the next attempt is for hundreds--perhaps thousands--of dollars.

Log Off When Your Business Is Complete

 If anyone else has physical access to the computer that you use to do your banking
online, always log off when your business is complete. This reduces the possibility of
someone else using the computer while your session is still active
.

Remain Safety-minded at All Times

 Never lose sight of the fact that safety should always be your top priority when
banking online. Avoid falling into the trap of believing that your online anonymity makes
you safe. Hackers rarely target individuals. Instead, they cast large "nets" hoping to snare
as many people as possible. Your false sense of security can be a hacker's greatest asset.
Things you can do

• Download Banking Transactions

• Download Credit Card Transactions

• Online Bill Payment

• Quickly Verify Bank Balances.

• Transfer Money.

• Open and Close accounts.

• Check account balances.

• Track recent account activity.

• Issue stop payment requests

• Receive investment product and service information