BY POOJA AGRAWAL

Internet banking refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC).

An existing bank with physical offices can establish a Web site and offer Internet banking to its customers as an addition to its traditional delivery channels. A second alternative is to establish a virtual, branchless, or Internet-only bank. Virtual banks may offer their customers the ability to make deposits and withdraw funds via ATMs or other remote delivery channels owned by other institutions.

The Basic Level Service is the banks websites which disseminate information on different products and services offered to customers and members of public in general. It may receive and reply to customers queries through e-mail. In the next level are Simple Transactional Websites which allow customers to submit their instructions, applications for different services, queries on their account balances, etc, but do not permit any fund-based transactions on their accounts. The third level of Internet banking services are offered by Fully Transactional Websites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities.

Widespread growth of the internet Customers may use this technology anywhere in the world to access a banks network. The internet- enabling technology-has made banking products and services available to more customers by eliminating geographic and proprietary systems barriers. Opportunities to expand or change their product and service offerings. Internet for delivery of banking products and services No longer confined to the branches In true internet banking, any inquiry or transaction is processed online without any reference to the branch at any time. Providing internet banking is increasingly becoming a need to have than a nice to have service.

To scale borders, change strategic behaviour and thus bring about new possibilities. Moved real banking behavior closer to neo- classical economic theories of market functioning. Absolute transparency of the market, clients (both business as well as retail) can compare the services of various banks more easily. The internet has significantly reduced the physical costs of banking operations. Internet has facilitated its transmission Electronic banking services, whether delivered online or through other mechanisms

A service is provided or a product is manufactured

The service or product is brought and paid for with cash or by card

Product or service

Payment (Cash or Card)

Bank

Providing a service or manufacturing a product

Sellers Computer

Buyers Computer

Electronic transfer of value

Product or service received

BANK

 Benefits

to Customers

Anytime Banking Anywhere Banking Quick Service Saving in Time Customer Satisfaction.

Benefits

to Banks

Minimise cost Global Coverage Central Data Base Customer-Bank Relationship. Reduces paper work Minimise Frauds High Productivity Advertising Tool

 Benefits to Government

Global Market Cash less Banking Transparency.

Benefits

to Merchants Traders

Minimise Risk Instant Settlement Promotions of business enterprises Increased purchasing

 Banking

System not Ready

Laws of Land Not Ready Lack of Infrastructure Facilities adequate steps have not yet been taken (facilities ) Security Issue Costly Low level of Awareness Hesitation on the part of Customers Lack of Initiative Insignificant Role of Govt

Thank you