Here in this blog, discussed are the crucial pointers about net banking, features linked with net banking, and benefits and drawbacks of net banking. Let’s start with what’s net banking.
What’s net banking?
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Net banking even is called online banking or e-banking. This is a route offered by financial institutions or banks that permit you as a customer to use the banking services using the internet. You as a customer do not require visiting the bank’s branch office to avail every small banking service. However, to be eligible to use net banking, you must have a registered ID number and passcode to log into your banking account.
For instance, suppose you just opened a Bank of Baroda account by visiting the bank during the Bank of Baroda timings. After you opened the account, the bank provided you with the net banking login details like your ID number and the passcode. Note that while you cannot make changes to the ID number, you must change the passcode once you log into your net banking.
Now, using this Bank of Baroda net banking account, you can conduct various bank-linked activities like accessing your Bank of Baroda mini statement, checking your account balance, transferring your fund to another account, paying the bill of your utilities, credit card, etc.
What are the features of a net banking account?
Features of net banking account include –
∙ Provision to check your account statement through the online mode
∙ Provision to open a fixed deposit, recurring account or invest in a mutual fund of your choice
∙ Pay your utility bills like electricity or water bill
∙ Make the merchant payment
∙ Transfer the fund
∙ Order the checkbook
∙ Purchase a general insurance
What are the benefits of net banking?
Benefits of net banking include –
Availability – You can get banking services anytime from anywhere. Most services provided are not time bound; meaning, you can review your bank balance anytime and even transfer the funds without the need to stand in long queues at the bank.
Simple to operate – Through this service provided by net banking, it is simple and easy for you to operate. Many find transacting through the online route way simpler than approaching the bank branch.
Convenience – Net banking offers you high convenience. You do not require leaving your important work behind to stand in the long queue at your bank. You can simply be done with this transaction from anywhere you are. Using this facility, you can pay your utility bills, fixed deposit or recurring deposit account installments and conduct various other online banking operations with ease without the need for visiting the bank branch.
For instance, suppose you have an account with the Bank of Baroda, then using the Bank of Baroda account details you can simply log in to its net banking to conduct various activities like fetching your Bank of Baroda mini statement, conducting online payments, investing in fixed deposit, recurring deposit, or mutual funds, etc. Thus, with net banking, you can conduct your banking transactions from anywhere at any time.
Time efficient – You can conduct any banking transaction in just a few minutes through net banking. Funds can simply be transferred to any kind of account, or you can even open a recurring deposit or fixed deposit in no time using internet banking.
Activity tracking – When you make the bank transaction, you may get an acknowledgement receipt. There are chances of losing the same. On the contrary, all the bank transactions that you perform on the bank’s net banking portal are recorded. You may show this as transaction proof if required. Details like payee’s name, the amount paid, bank account number, time and date of payment and remarks, in case any are recorded too.
Pay your bills through the online portal – You can use net banking to make payments of your bills through the online portal. This rids you of the worry of keeping constant track of your payments as all your transactions are recorded and mailed to you or updated on the net banking portal. Note that to make the payment, you just need to fill out the required info and simply select the payee every time whenever you require to make the payment. Z
Many banks allow you to opt for the recurring automatic payment of the same amount each month. This specific feature can help you when you require to make payments for your car insurance or health insurance premium or SIP monthly.
Activating this feature means you do not need to worry about remembering the payment date for any of your payments as the payment will be performed automatically on the due date. However, just ensure to have the required balance in your account, which will be automatically deducted. In case, you fail to maintain the required balance in your account, then the deduction may not happen, which may negatively impact your finances.
View your transactions – With net banking, you can easily view your account history as well as your transaction at any time from anywhere. This is one of the simplest and quickest ways to see if your transaction is cleared from your account and what’s your account balance in your bank account. It even allows you to figure out any unauthorized transactions instantly, which allows you to dispute them instantly.
What are the drawbacks of using net banking?
Requirement for internet – Having an uninterrupted network is the major requirement for using the net banking service. In case you have no access to the internet, you may not be able to make use of this facility provided online. Likewise, if the server of your bank is not working or is down owing to any technical problem, you may not be able to access your internet banking.
Transaction security and safety – No matter how many precautionary measures your bank takes to offer you a secured network, banking transactions have a small amount of chance of being vulnerable to hackers. Regardless of the encryptions used to keep the data safe, there are certain reported cases wherein transaction details were compromised. This might lead to a big threat like the usage of data illegally, etc.