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Finance

What is E-banking and its Types

Summary: E-banking is a broad term that includes everything from internet and mobile banking to NEFT and IMPS transfers. Check out what is E-banking & its types

19 Jun 2022 by Team FinFIRST

E-banking is a broad term that includes everything from internet and mobile banking to NEFT and IMPS transfers.
 

When did you last visit your bank to change your ATM PIN or update your personal details, such as your registered mobile number? It has been a while for many customers, thanks to the internet. E-banking comes naturally to customers when they need to resolve an issue with their bank or make a financial / non-financial transaction. Given its convenience, the types of E-banking and the problems that it has solved merits an assessment.

What is E-banking?


E-banking is an arrangement between a bank or a financial institution and its customers that enables encrypted transactions over the internet. Short for electronic banking, E-banking has various types that cater to customers' different requirements, which can be resolved online.

E-banking is also helpful for non-financial transactions such as changing your ATM PIN, getting a mini statement, updating your personal details, balance inquiry or printing an account statement. Essentially, it refers to any transaction that doesn't involve any movement of funds to or from your account.

 

 

Types of E-banking


The major types of E-banking are online internet banking, mobile banking, automated teller machine (ATM), and debit and credit cards. There's a good chance you've already heard about most of these. However, let's understand each and how they cater to different customer requirements.

Mobile and Internet banking


Internet banking and E-banking are almost synonymous, except the latter is a broader term encompassing the former. Any transaction – financial or non-financial – that you make over through a web page (generally the bank's website) or a web application constitutes internet banking.

You can experience banking at your fingertips with IDFC FIRST Bank's internet banking services, which facilitate easy transfers, quick bill payments and access to loan details. On the other hand, mobile banking happens through your mobile phone via a bank's mobile banking app.

IDFC FIRST Bank enhances your mobile banking experience with SMS, WhatsApp, and video banking.

Credit and debit cards


Credit and debit cards are a form of E-banking, too! Debit cards can help us easily withdraw cash from ATMs and POS (Point of Scale) machines. On the other hand, credit cards allow customers to borrow funds up to a pre-approved limit and help them avail a range of offers.

ATMs


ATM was the first E-banking service provided by banks when they started going digital. An ATM makes the process of withdrawing and depositing money convenient.

Electronic Data Interchange (EDI)


EDI is a technology that is restricted to business transactions. It is used to improve operational efficiency and reduce transaction costs across a supply chain consisting of manufacturers, suppliers, logistics providers, retailers, and wholesalers, etc. EDI has succeeded in making transactions across businesses paperless and seamless.

Electronic Fund Transfer (EFT)


An EFT is used to electronically transfer money from one bank account to another. Some examples of EFT are National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS) and Real-Time Gross Settlement (RTGS). Hence, E-banking comprises a range of different mediums of transacting online.

Why should you prefer E-banking?


E-banking enables digital payments which are secure, transparent, and fast. In addition, E-banking allows you to access your bank account whenever you want to. Add to this the benefit of lower transaction costs on transactions made through E-banking. The instant notifications are also a plus, as they help you know everything about your bank account in real-time.

Advantages of E-Banking


- Security and transparency of digital payments

- 24/7 access to bank accounts

- Lower transaction costs

- Instant notifications and updates

 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.