Home»Blog»Banking»What Is Net Banking? Features And Advantages Of Internet Banking
What Is Net Banking? Features And Advantages Of Internet Banking
6 July 2022
Banking services are evolving faster than ever in the digital age. In a country like India, where precious hours used to get wasted in long bank queues, digitisation of the banking ecosystem has been a boon. That is why it is especially important to embrace net banking or online banking.
With net banking, you can easily access your bank account online from anywhere in the world using your laptop or mobile device. With the online platform, shopping or transferring funds from one account to another and managing your bank account has become easier and hassle-free.
What is Net Banking?
Net banking, also referred to as internet or online banking, is a digital method of conducting banking transactions via the internet. It is an electronic system that anyone with a bank account can activate and use for financial transactions. Online banking provides customers with every service previously available only through a local branch, such as deposits, transfers, and online payments. Financial and banking institutions offer some form of online banking, both on desktop and through mobile apps.
Features of Net Banking
Internet banking has several advantageous features, which makes it essential in today’s digital world. Here are a few key features of net banking that are common across banking and financial institutions.
Net banking provides 24×7 access to all banking services, including checking account balances and statements.
Facilitates simple fund transfer and bill payment process.
Customers can apply for insurance or loans through internet banking.
Allows managing assets like fixed deposits.
Provides a secure environment for a wide range of banking transactions.
Customers can easily update their primary and secondary addresses.
Customers can easily open an account, upgrade their debit/credit cards, and block them when necessary, using net banking.
Net banking system is secure and safe. Only your unique ID and password will allow you to access the internet bank.
As a result, it is the quickest and safest mode of transacting online.
How to Apply for Net Banking?
You can sign up online for net banking through the official website of your respective bank.
Go to your bank’s official internet banking website.
Click the login button or the ‘New user/Register here’ link to log in.
Fill the self-registration form, by entering your account number, mobile number, CIF number, debit card, and other details.
Then enter the OTP sent to your registered mobile number to authenticate the process.
Enter your temporary customer ID number and password.
Sign in to make a more secure password.
Individuals who are unfamiliar with the fundamentals of internet banking can also access net banking services offline. You can submit the Application Form at your local branch, along with all the required documents, like copies of your bank passbook, Aadhaar card, etc. After verifying all the information, the bank will issue a customer ID and password for internet banking.
Advantages of Net Banking
Here are mentioned few advantages of net banking:
1. Single Platform for all Banking Services
Net banking allows users to access both financial and non-financial banking products/services from a single platform. You can open a fixed deposit account online, make payments to shoppers and merchants, order a cheque book online, buy insurance services online, set up online recurring payments and so on, with just one click.
2. Go Cashless
The ability to go cashless is an important feature of net banking. It allows you to direct or cancel automatic payments with a single click. You can transfer funds online at any time using NEFT, RTGS, or IMPS.
A safe and convenient banking method. Instead of going to the bank to fill out your passbook entries and keep track of your transactions, mortgage payments, loans, savings accounts, and so on.
You can check your bank balance online at any time. Net banking allows you to pay your water, electricity, and other bills online quickly. You can also book tickets online and initiate transactions on a variety of e-commerce platforms.
Internet banking allows you to complete any transaction in a matter of minutes. Net banking allows you to transfer funds to any account in the country or open a fixed deposit account in no time.
There are some disadvantages of net banking. These include:
1. Interruptions in Technology and Services
Your ability to access accounts online will naturally be hampered if your internet service is slow or unavailable for an extended period. Similarly, if the bank’s servers fail or become temporarily unavailable because of scheduled site maintenance you cannot access any net banking services.
2. Difficult for Beginners
There are people in India who have lived their entire lives away from the internet. Inexperienced beginners will have a challenging time figuring it out on their own.
3. Transaction Security
Regardless of how many safeguards banks put in place to provide a secure network, online banking transactions continue to make account holders vulnerable to hackers lurking around.
4. Password Protection
Each net banking account requires a password to be entered to access the services. As a result, the password is critical to maintaining integrity. So, you should change your net banking passwords regularly to avoid theft of passwords. However, this can be difficult for account holders to keep a track of remembering all the time.
Types of Fund Transfers via Net Banking
1. National Electronic Fund Transfer (NEFT)
National Electronic Funds Transfer (NEFT) is a nationwide payment system that allows for one-to-one transfers of funds. Individuals, businesses, and corporations can electronically transfer funds from one bank branch to another in any participating country.
2. Gross Settlement in Real-Time (RTGS)
RTGS is defined as the continuous (real-time) settlement of individual funds transfers on an order-by-order basis (without netting). The RTGS system is designed primarily for high-value transactions. Transferring funds occurs on an immediate basis throughout India, and once completed, the transfer cannot be reversed.
3. Electronic Clearing House (ECS)
ECS is an alternative method for automatically debiting utility bill payments such as phone bills, electricity bills, insurance premia, card payments, loan repayments, etc. from your account.
4. Immediate Payment Service (IMPS)
IMPS provides an instant, round-the-clock interbank electronic fund transfer service via mobile phones. IMPS is a powerful tool for instantly transferring money between banks in India via mobile, internet, and ATM, which is not only secure but also cost-effective in both financial and non-financial terms.
You can access your bank account from anywhere using net banking.
You initiate online fund transfers using services such as NEFT, RTGS, and IMPS.
You can access your account balance and previous transactions remotely at any time.
Internet banking allows you to pay utility bills in the most convenient manner and recharge DTH and mobile services.
Internet banking also includes the ability to invest and apply for loans.
Open a fixed-income account.
Order bank cards and cheque-book.
Net banking is a banking service that allows customers to access banking services online rather than in person at the bank. You can easily access your online bank account from anywhere in the world using your laptop or mobile device and do shopping or transfer funds from your account to other entities in a matter of minutes.
FAQs on Net Banking
Q1. Who can use net banking?
Ans: Any individual with a working bank account can be registered for net banking.
Q2. Can we use net banking without an ATM?
Ans: By entering your debit card information, you can activate your net banking account without visiting a bank branch. Users who do not have a debit or ATM card must visit their bank branch to complete their internet banking registration.
Q3. Can I change my net banking password?
Ans: Yes, you can change your net-banking password at any time. It is recommended that users change their passwords at least once every two months.
Q4. What is a user ID in internet banking?
Ans: When you apply for a new account, most banks provide you with an internet banking ID and password.
Q5. What should I be careful about when using net banking?
Ans:Ensure that you do not share your user ID and password, or the OTP to change the password with anyone.
Before you go…
Looking for instant 🚀 personal loans 24*7 anywhere, anytime? Get personal loans up to ₹20 lakh starting at 9.9% p.a. Install the Navi app now!!
Or, maybe you’re looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 8.39% p.a.
How about an affordable health insurance policy👨⚕️ starting at a monthly premium of just ₹235? Install the Navi app now and get your policy in under 2 minutes.
Instead, want to put your savings into action and kick-start your investment journey 💸 But don’t have time to do research. Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
10 Best Places to Celebrate New Year 2023 in India
Your PAN could become Invalid from 1 Apr 2023, Act Today!
7 Vijay Kedia Investment Tips You Cannot Ignore!
Cristiano Ronaldo 7 ‘Dark’ Jokes, Football’s Bad Boy
100K+ Laid Off! 7 Ways to Be Financially Prepared for Layoffs
Looking Through SKY: Suryakumar Yadav’s Success Secrets🤫
10 Best Party Places in Bangalore: Rooftop, Brewery, Poolside
10 Best Christmas Gift Ideas Even Santa Wouldn’t Ignore
7 Tax Planning Tips You Cannot Ignore!
Save More! Check Out 10 Best Fuel Credit Cards in India
We are a diverse group of writers, editors and Subject Matter Experts striving to bring the most accurate, authentic and trustworthy finance and finance-related information to our readers. Our mission is to simplify jargon and industry lingo. We believe sharing knowledge through relatable content is a powerful medium to empower, guide and shape the mindset of a billion people of this country.
Best Credit Card Offers in India in 2023
Credit card offers are incentives offered to credit cardholders when they use the cards to make pur...Read More »
Understanding Risk-Weighted Asset (RWA) and its Calculation in Banking
Risk-weighted asset or RWA is a banking term that refers to an asset classification system to deter...Read More »
List of 10 Best Savings Accounts in India
A savings account keeps your money safe, and lets you earn interest every quarter. There are many b...Read More »
What is Credit Appraisal – Eligibility, Benefits & How It is Done?
Ever wondered why loans get approved but also sometimes get rejected? Well, every bank has its own ...Read More »
Debt Trap: Meaning & How to Avoid Falling in It
Piling up debt could bring unnecessary stress. Having multiple loan EMIs and credit card bills to c...Read More »
How to Apply for Debt Consolidation Loans and What are Its Benefits?
If you have multiple loans, taking out a single loan to pay them off is known as a debt conso...Read More »
What is a Bank Identification Number (BIN) and How Does it Help in Preventing Fraud Transactions?
A Bank Identification Number or BIN refers to a credit card's initial four to six digits. The BIN i...Read More »
What is Kiosk Banking, How Does it Work and What Does it Offer?
Banking kiosks or ATMs are available at multiple locations across India – mostly in remote and ru...Read More »
Personal Banking: Services and Products You Should Know
Personal banking refers to the products and services that banks offer to customers to manage their ...Read More »
Know How to Increase CIBIL Score in 11 Smart Ways!
If you are in the process of securing a loan, the first factor that lenders consider is your CIBIL ...Read More »
Promissory Note: What it is, Features, Types and Format
Promissory notes are the go-to instrument used by financial institutions to keep a clear and legall...Read More »
What are Scheduled Banks? How are They Different from Non-Scheduled Banks?
Banks play an essential role in a country’s financial ecosystem. These financial institutions ass...Read More »
Diwali 2022: Diwali Holidays – The Festival of Lights
The ‘Festival of Lights’ is one of the biggest and most anticipated festivals in India. This is...Read More »
Best Index Funds – Top 20 Index Funds in India
Index funds replicate the performance of a stock market index, such as the Sensex or Nifty 50 to ge...Read More »