Banking / Mobile Banking
Net Banking / Mobile Banking
Services in India
more about Mobile Banking |
on Mobile banking
Electronic Fund Transfer And Clearing System:
The Indian Banking Association has been busy.
Having launched the Electronic Fund Transfer
(EFT) and the Electronic Clearing System (ECS)
among member banks, customers were looking
forward to catching up with the time-is-money
culture in more ways than way. Here is a look
at what gives and the many-a-slip-'tween cup-and-lip
even as domestic banks spruce up their act.
Electronic Fund Transfer:
Unlike Swadhan, this is a system that IBA
offers that is better-applied and waiting
for appreciation. EFT is probably the safest
and fastest way to transfer money from your
account to another individual in another city
regardless of which bank she uses.
All the transferer needs is her account number.
A maximum of Rs0.1mn can be transferred for a flat
fee of Rs25. The bank has discretionary powers to
raise the limit for selected customers. Or a customer
can break up the transactions in to multiples of
upto Rs0.1mn. The money sent is credited overnight
and can be withdrawn by the receiver the day after
The hitch, it is not well known and secondly,
the facility is only available in the four metros!
Plus, money sent from abroad cannot be transferred
through EFT.Disclosing other advantages of the
EFT, an official of the IBA's department of information
technology, says, "The facility can be availed
of even if the branch from where you are sending
the amount is not fully computerized.
The details of the transfer have to be sent to
the RBI which in turn notifies the receiving bank
to credit the individual with the mentioned amount."Most
bank officials agree that publicizing and marketing
these facilities should be a priority since many
customers are used to old methods of transaction:
telegraphic machinery or by the cheques.
Electronic Clearing System :
mind the vagaries of the stock market. For those
who are and will always make equity investments
a way of life the ECS has made the life a lot easier
as far as dividend payments go. All a person has
to do is provide the company with details about
the bank where the deposits should be made. The
firm can then directly deposit the dividends into
the shareholder's account. The maximum that a company
can deposit is Rs0.1mn, though here too, the bank
has the discretion to raise that ceiling.
Apart from being a free service, from four metros
the facility can now be availed of in 15 cities
(those that have regional RBI offices) including
Ahmedabad, Pune, Thiruvananthapuram and Nashik.
This geographical spread, lacking in the EFT, has
led to the increasing popularity of ECS. By one
estimate, the volume of transactions has increased
this year. Last year, the IBA recorded Rs2.3mn through
ECS; this year upto now the transactions have already
touched over Rs4mn. What stymies growth is the number
of firms that use ECS. At present the facility is
available with 65 Indian companies, so check if
your investible companies are on this list.
word of caution. Despite assurances of speed and
safety, there have been complaints of delays in
transfers to accounts. To ensure that the money
has been credited, check account statements at regular
its not that IBA's intentions are not honorable.
If only the infrastructure was in place, real-time
banking off-hours would be available to the loyal
customers. On par with the rest.
here to read the full article
you are tired to stand in a long queue waiting
for a passbook to be updated or wait for the
next day for a demand draft to be prepared,
take heart. Internet technology has invaded
the portals of our banking institutions and
as the cliché goes everything will
just be a click away.
doubt, innovations like telebanking and automated
teller machines (ATMs) have considerably put
customers at ease in the recent past. But
with net banking the customer will be able
to transact with the help of a mouse and his
visits to the neighborhood bank will become
a thing of the past.
a modest start has been made in India, net banking
has still a long way to go. This development has
been acknowledged by the latest Online Banking Report,
which features a listing for ICICI Bank. Some others
like Citibank, HDFC Bank and Global Trust Bank also
have also endeavored to make real time banking a
reality before this century closes.
this article we attempt to enlist the various services
offered over the net by the different banks. An
average customer will be interested to know whether
firstly, net banking offers him/her a wide range
of services, secondly, show a history of transactions
made, thirdly, transfer funds between accounts and
most importantly whether the services offered are
have listed below the broad range of services offered
by HDFC Bank via its net banking network. These,
with a few exceptions, will also be representative
of what others like ICICI Bank have on offer. Net
banking makes it easy to transfer ones money
from one branch in a particular city to any other
branch in an another city.
One can open a FD account via the net. One
needs to provide data regarding the amount
and term of the deposit and also the branch
in which the account is to be opened. One
can order for an issue of a demand draft or
a bankers cheque. However, the draft
can be delivered only to the customers
address and not to any other third party.
can inquire on the balance in ones savings,
current and FD account and also on the tax
deducted at source on ones FD account
for the current and previous financial year.
One can give instructions over the net for
stopping payment on a cheque(s). You can request
for a cheque book via the internet, which
will take three days to come. One can view
all the transactions completed on an account
for a specified period and get a copy via
can be seen there is not much on offer in
terms of transactional business except being
able to order for cheque books and statements,
transfer funds between accounts of the same
person and open a fixed deposit account. In
contrast, ICICI Bank with its net banking
service called Infinity goes a
step forward by allowing the account holder
to transfer funds into another persons
account within the bank.
one can intimate about the loss of an ATM Card over
the net when using Infinity. Moreover, corporates
can issue letters of credit and make enquirys
regarding bills sent for collection via this service.
A special feature on Infinity is the facility for
nicknaming all accounts to avoid remembering lengthy
account numbers. In terms of safety, HDFC Bank allows
one to have three login attempts after which a new
password is given while ICICI Bank will disable
the password after five login attempts.
the fact that these services are offered without
charging a fee, the effort is commendable. Both
HDFC and ICICI have free demonstrations on their
respective websites which are self-explanatory and
can guide a first time user on how to use the facility.
There are others who also have the facility like
Global Trust Bank, which is the latest entrant in
the bandwagon. Others like ABN Amro and Times Bank
are also set to hit the net by next year.
is no doubt that potential for net banking in India
is immense considering the rising penetration levels
of the World Wide Web in Indian homes and offices.
When one takes a look at what is available worldwide,
one sees that net banking is more of a norm rather
than an exception in many developed countries. The
services offered enables one to check credit card
transactions, paying bills, transfering funds between
accounts in two different banks and scheduling future
payments and transfers. The gradual increase in
net banking is logical as the need to minimize costs
North American Internet Banking Survey done by management
consultancy Booz Allen & Hamilton in 1996 revealed
that the cheapest way of banking is Internet banking.
The survey estimated that a brick and mortar network
of a bank would cost US$1.07 per transaction while
it is only US$0.01 for internet banking. The same
survey said that by 2000, 16 million US households
would be banking through the net.
India, however, there may arise problems with nationalized
banks, which have in the past opposed computerization.
However, the fact remains that given a choice, customers
would like to bank via the net and the next decade
could well see virtual banking becoming a reality.
here to read the full article | Print