BANKING : an Introduction

Banking can be defined as the business ​activity of accepting and safeguarding ​money owned by other individuals and ​entities, And then lending out this money ​in order to earn a profit .


Bank is a financial institutions that ​undertakes the banking activity i.e. it ​accepts deposits and then lends the same ​to earn certain profit.

A guide to seamless E-Banking

In the current digitised financial landscape, banks are increasingly shifting their services online, providing customers ​access to various banking services. It encompasses everything from loans and debit/credit cards to personalised digital ​financial solutions.

E-banking, also known as online banking, internet banking or virtual banking, is an electronic payment system that enables ​customers of a bank or other financial institution to conduct a range of financial transactions through the financial ​institution's website

The Significance of E-Banking

For Client

  • Cost Efficiency

E-banking streamlines transactions, saving ​clients time and money without frequent branch ​visits.

  • No Geographic Barrier

E-banking eliminates geographical constraints, ​allowing seamless transactions from anywhere.

  • Convenience

Clients enjoy 24/7 access to their accounts, ​managing finances quickly and flexibly.

For Businesses

  • Enhanced Efficiency

E-banking automates routine tasks, enhancing ​business productivity and facilitating seamless ​operations.

  • Cost Reduction

Internet banking cuts costs associated with various ​financial services, presenting substantial savings ​for businesses.

  • Fraud Prevention

Improved transaction visibility through e-banking ​acts as a deterrent to fraudulent activities.

For Banks

  • Lower Transaction Costs

Electronic transactions prove cost-effective for ​banks, thus contributing to financial efficiency.

  • Error Prevention

The electronic relay of information eradicates the ​risk of human errors in banking processes.

  • Customer Loyalty

Banks offering convenient e-banking services foster ​higher customer loyalty and satisfaction.

E-Banking Services

  • Mobile Banking (M-banking)

M-banking facilitates financial transactions through mobile devices, ​allowing users to perform account transfers, bill payments, credit ​applications, balance checks, and other transactions via smartphones.

  • Electronic Clearing System (ECS)

An innovative solution for busy individuals, ECS automatically debits ​credit card bills or loan EMIs from the user's savings account, ​eliminating concerns about missed or late payments.

  • Electronic Fund Transfers (EFTs)

EFTs enable electronic money transfers between individual and ​multiple accounts, within or across financial institutions, using ​computer-based systems without direct bank staff intervention

HOW TO OPEN A BANK ACCOUNT?

SOME OF THE BANK:

AUTOMATED TELLER MACHINE

ATM stands for an “Automated Teller Machine”. An ATM is a computerized device that enables individuals to conduct various banking transactions without the need for a human teller. It provides a convenient way to access and manage our bank accounts, even outside the banking hours.

How Does an ATM Work?

Now that we know what an ATM is, let's delve into how it actually works. At its core, an ATM is a ​combination of hardware and software components. When you approach an ATM, you insert your ​plastic card, usually a debit card or credit card, into the card slot. The card contains a magnetic ​stripe or a chip that stores your account information. Once the card is inserted, you are prompted ​to enter a Personal Identification Number (PIN) to authenticate yourself as the account holder. ​Upon successful authentication, the ATM establishes a connection with your bank's network to ​retrieve your account details. This allows you to perform various transactions such as cash ​withdrawals, balance inquiries, fund transfers, and even bill payments.