The internet has revolutionized the way banks serve their customers by providing seamless online banking options. Today, customers have the convenience of managing their bank accounts, checking balances, transferring funds, and setting up standing instructions with remarkable speed and flexibility, regardless of their location. This is all made possible through the utilization of net banking or internet banking, accessed via the bank’s online portal.
To get started, an account holder simply needs to provide a few essential details for registration, after which they can conduct various transactions independently, without requiring extensive assistance from the bank. Access is typically granted through a combination of a username and password, and in some cases, an additional security code or One-Time Password (OTP) is necessary to authorize fund transfers. Internet banking has significantly enhanced the cost-effectiveness of delivering banking services, enabling data-driven decision-making. For a comprehensive understanding of internet banking, continue reading to explore its various aspects.
What is Net Banking or Internet Banking
Net banking, also known as internet banking, is a digital system managed by financial institutions (banks) that empowers customers to access both financial and non-financial banking services through online platforms. Gone are the days when customers had to physically visit their bank branches for even minor transactions. With the advent of internet banking, nearly all banking services and products can now be conveniently accessed online, ranging from fund transfers to requesting demand drafts. Not only is net banking incredibly convenient, but it also offers a secure method of conducting banking transactions.
Services Accessible Through Net Banking
Net banking provides access to a wide range of services, including but not limited to:
- A secure and user-friendly banking experience.
- A password-protected banking system to safeguard your financial information.
- Easy access to various financial and non-financial banking products and services.
- The ability to manage your bank account at any time and from anywhere.
- Monitoring and management of your bank balance, recent transactions, and account statements.
- Online fund transfers through NEFT, RTGS, and IMPS at your convenience.
- Swift processing of bill payments.
- Tracking of payments, including personal loans, home loans, business loans, credit card accounts, and savings accounts.
- The capability to manage or cancel automatic payments.
How to Register for Net Banking
Most of the banks open an internet banking account for the customers as and when they apply for a new bank account. If you do not have an internet banking account already,
- You can submit the Internet Banking Application Form at your home branch along with required documents such as a copy of your bank passbook, Aadhaar card, etc.
- The bank will verify all the information and then issue a customer ID and password for internet banking
- The net-banking application form can be downloaded from your bank’s official website
- After receiving the credentials, you can log-in and access net-banking
Note: All the new users must change the password issued by the bank after logging in to net-banking for the first time.
If you don’t already have access to internet banking, you can follow these steps:
- Visit your bank’s home branch and submit the Internet Banking Application Form along with the necessary documents, such as a copy of your bank passbook, Aadhaar card, and other relevant paperwork.
- The bank will then review the provided information and issue a customer ID and password for internet banking.
- Alternatively, many banks offer the option to download the net banking application form directly from their official website.
- After receiving your login credentials, you can log in and begin using net banking to manage your financial transactions securely and conveniently.
How to Register for Net Banking Online
Besides offline registration, which involves the submission of the application form at the bank, users can register for net-banking online from the respective bank’s official website. However, it should be noted that not all banks offer online registration for internet banking services.
Step 1: Visit your bank’s official net-banking website
Step 2: Click on the ‘login’ button under personal/retail banking option
Step 3: On the next screen, click on the ‘New User? Register Here’ option
Step 4: If you have already obtained the customer ID and password from the bank, enter and proceed to login. Otherwise, click ‘Next’
Step 5: Now, you will be required to fill a ‘Self Registration Form’. Enter details such as account number, registered mobile number, email address, branch code, CIF number, debit card details, etc. After that, click on ‘Submit’
Step 6: Authenticate your registration using a one-time password sent to your registered mobile number
Step 7: On the next screen, your temporary customer ID and password will be displayed
Step 8: Log-in using your temporary credentials. You need to create a new log-in password after logging in for the first time
Note: Login and transaction password should be changed every 2 months to safeguard the net-banking account.
Steps for Net Banking Login
After successful registration, you can follow the given steps to log into your net banking account-
- Visit your bank’s official net-banking website. (Make sure the URL of the website starts with ‘https://’. This means that the URL is secure)
- If you are a retail user, choose ‘Personal Log-in’. If you are a corporate user, choose ‘Corporate Log-in’
- Now, on the next screen, enter your customer ID and password
- Enter Captcha and click on ‘Login’
- Your Net Banking dashboard will be displayed on the next screen
Types of Fund Transfers Available through Net Banking
Net banking offers users the convenience of transferring funds between accounts using three distinct methods: NEFT, RTGS, and IMPS. Let’s delve into these methods in detail:
NEFT (National Electronic Fund Transfer): NEFT is a widely used payment method that facilitates one-to-one fund transfers. While it operates within specified time frames at the bank, it’s accessible around the clock on net banking platforms. Typically, NEFT transactions take approximately 30 minutes to successfully transfer funds. However, in certain cases, it might take up to 2-3 hours.
RTGS (Real-Time Gross Settlement): RTGS represents a real-time settlement system where funds are processed individually on a per-order basis. This means that the RTGS system guarantees immediate credit to the beneficiary’s account. Transactions made through RTGS are overseen by the Reserve Bank of India (RBI), making them irreversible. This method is primarily used for transferring a minimum of Rs. 2 lakh. Similar to NEFT, RTGS operates within specific time windows at the bank but is available 24/7 via net banking.
IMPS (Immediate Payment System): IMPS facilitates real-time fund transfers and is commonly used for instant fund transfers within banks across India. Users can transfer funds via IMPS simply by using the mobile number of the beneficiary. This method provides a swift and hassle-free way to send money, accessible through mobile, internet, and ATM services.
Understanding E-Banking : What is E- Banking
E-banking, short for Electronic Banking, encompasses all the modes of banking services and financial transactions conducted through electronic channels. It empowers individuals, institutions, and businesses to seamlessly access their accounts, conduct financial transactions, and gather information about a wide range of financial products and services using either public or private networks, which often include the internet. E-banking has revolutionized the way we interact with the banking sector, providing efficiency and convenience for customers in their financial activities.
Popular E-Banking Services in India
E-banking offers a range of services in India, catering to the diverse needs of customers. Here are some of the most popular e-banking services:
1. Internet Banking:
- Enables online financial and non-financial transactions.
- Allows fund transfers, balance checks, statement views, and bill payments.
2. Mobile Banking:
- Conduct transactions via mobile phone apps provided by banks.
- Provides flexibility similar to net banking for various banking services.
3. ATM (Automated Teller Machine):
- Allows cash withdrawals, deposits, PIN changes, and other banking services.
- Requires a password and may involve fees for exceeding free transactions at non-bank ATMs.
4. Debit Cards:
- Linked to bank accounts for cashless transactions.
- Used for various payment types, deducting funds instantly.
5. Direct Deposit and Withdrawals:
- Permits automatic payroll deposits and bill payments.
- Authorizes the bank to deduct funds for bills, installments, and more.
6. Pay by Phone Systems:
- Lets customers contact their bank for bill payments or fund transfers.
7. Point-of-Sale Transfer Terminals:
- Allows instant card payments for purchases via debit/credit cards.
Services Offered Through E-Banking in India
E-banking in India provides an extensive array of services, including telephone banking, electronic clearing cards, door-step banking, shopping, funds transfer, electronic funds transfer systems, telebanking, fixed deposits, and various investment and insurance options.
Comparison Between Net Banking and E-Banking
Internet banking and electronic banking are sometimes conflated, but they differ in scope. Here’s a comparison to clarify their distinctions:
Internet Banking:
- Part of electronic banking, enabling various online transactions through the internet.
- Offers services like fund transfers, deposits, and bill payments traditionally available through local branches.
E-Banking (Electronic Banking):
- A broader category encompassing various electronic banking services.
- Includes internet banking, mobile banking, telebanking, ATMs, debit cards, and credit cards, offering multiple electronic means to access banking services.
How to Transfer Funds via Net Banking
Transferring funds via net banking is a straightforward process, generally consistent across banks. Here’s a step-by-step guide:
- Log in to your bank’s official net banking portal using your customer ID and password.
- Navigate to the ‘Transfer Funds’ option and select the transfer method (NEFT, RTGS, or IMPS).
- If the beneficiary is not added, click ‘Add Beneficiary.’
- Provide the beneficiary’s name, account number, IFSC code, and bank branch name, then click ‘Submit & Save.’
- Enter the amount to transfer.
- Authenticate the transaction by entering the one-time password sent to your mobile number.
- Click ‘Confirm & Send,’ and the money will be transferred to the beneficiary’s account.
- You’ll receive a confirmation message or email from your bank for the successful transfer.
Please note that specific steps and interfaces may vary slightly from one bank to another, but the general process remains consistent for most net banking services.
How to Make Credit Card Bill Payments via Net Banking
Paying your credit card bills through net banking is not only convenient but also secure, with no additional service or transaction fees. Here’s a step-by-step guide on how to make credit card payments via net banking:
Step 1: Log in to your credit card provider’s official website.
Step 2: Look for the ‘Pay your Credit Card bill’ option.
Step 3: Provide your credit card details, including the credit card number, email address, and the payment amount.
Step 4: You will be redirected to the payment gateway. Choose the ‘Net Banking’ option and select the bank account from which you wish to make the payment.
Step 5: The next screen will take you to your bank’s payment interface.
Step 6: Enter your customer ID and password. Authenticate the transaction by inputting the one-time password received on your mobile number.
Step 7: Click ‘Confirm.’ Your bank account will be debited with the specified bill payment amount. After a successful transaction, you will receive a confirmation message through SMS and email.
Important Note: Always ensure that the URL of your bank’s payment gateway begins with ‘https://’ to signify the use of a secure and encrypted website, which is essential for safe transactions.
Bank Specific Net Banking Portals
Given below is a list of the popular public as well as private banks with a dedicated net-banking website for the customers.
HDFC Net Banking | SBI Net Banking | Canara Bank Net Banking |
Bank of Baroda Net Banking | Indian Bank Net Banking | Axis Bank Net Banking |
Bank of India Net Banking | Standard Chartered Net Banking | IDBI Net Banking |
YES Bank Net Banking | Bandhan Bank Net Banking | Punjab National Bank Net Banking |
Kotak Bank Net Banking | Union Bank Net Banking | ICICI Net Banking |
Advantages of Internet Banking
Internet banking, or net banking, offers numerous advantages and benefits to users, making it a popular choice for managing financial transactions. Here are some of the key advantages of internet banking:
1. 24×7 Availability:
- Internet banking is available 24/7, allowing customers to access banking services at any time and from anywhere. There’s no need to visit a physical bank branch, as all services are just a click away.
2. Convenient Financial Transactions:
- Internet banking simplifies financial transactions such as fund transfers, bill payments, and mobile recharges. Users can perform these transactions at their convenience, eliminating the need to adhere to bank branch hours.
3. Organized Statements and Transaction History:
- Internet banking provides organized records of transactions and historical account activity. Users can easily track their transaction history, including details like payee names, account numbers, transaction amounts, dates, and remarks. This eliminates the need for manual passbook updates.
4. Secure Banking System:
- Internet banking platforms prioritize security. Users are required to provide login credentials and transaction passwords, with some banks implementing two-factor authentication for added security. This makes internet banking a secure method for conducting financial transactions.
5. Access to Various Services:
- Beyond basic financial transactions, internet banking offers access to non-financial services. Users can check their account balances, request demand drafts, order cheque books, apply for personal loans, make tax payments, open fixed or recurring deposit accounts, initiate investments, review mortgages, manage trading accounts, and more. This wide range of services caters to various banking needs.
Frequently Asked Questions (FAQs) about Net Banking
Q. How can I access net banking?
- A. To access net banking, individuals need to have an operational account with any bank or financial institution. You must register for internet banking to obtain a unique ID and password. The registration process often involves submitting a net banking application form, which can be downloaded from your bank’s official net banking website and then submitted at the bank.
Q. Can I change my net banking password?
- A. Yes, you can change your net banking password at any time. It is advisable to change your password regularly, at least once every two months. Additionally, after the first login to the net banking portal, it is essential to change the password initially issued by the bank.
Q. What precautions should be taken while using net banking?
- A. While using net banking, it’s important to take certain precautions, including:
- Avoid using public Wi-Fi.
- Ensure you have reliable anti-virus software installed.
- Keep your smartphone or device’s operating system up-to-date.
- Change your login password regularly, at least every two months.
- Avoid accessing the net banking portal via email links.
- Refrain from using public computers for net banking.
Q. What is the user ID in net banking?
- A. The user ID in net banking is a unique identifier, much like a name, that serves as your identity. Most banks provide internet banking IDs and passwords when you open a new account. If you haven’t received your user ID and password, you can apply for net banking at your bank by filling and submitting an application form. After verification, you will receive the credentials to log in to net banking.
Q. What is the fee charged for availing net banking facility?
- A. Banks typically do not levy charges for providing net banking facilities.
Q. Can net banking users avail mobile banking?
- A. Yes, users of net banking can also avail mobile banking services.
Q. Do I have to visit the branch for registering for net banking?
- A. No, there is no need to visit the bank branch for net banking registration. You can activate your net banking with the provided customer ID when opening your account.
Q. Can I manage multiple accounts using the same net banking profile?
- A. Yes, you can manage multiple accounts using the same net banking profile. Your customer ID remains the same, but your account numbers will be different. You can select the specific account number from which you want to make transactions.
Q. How do I connect to a net banking account?
- A. You can access your net banking account by visiting your bank’s official website and registering for net banking using your customer ID, account number, and other relevant details.
Q. Is an ATM card needed for net banking?
- A. No, you do not need an ATM card for net banking. However, you may have to use your ATM card details for setting up your account or changing your banking password in some cases.
Q. Is it mandatory to provide a mobile number for net banking?
- A. Yes, it is typically mandatory to provide a mobile number for net banking, as it is used to generate OTPs (One-Time Passwords) for accessing net banking services.
Q. How can I check my account balance via net banking?
- A. You can check your account balance by logging into your net banking account and navigating to the ‘Account details’ section.
Conclusion
In conclusion, internet banking, or net banking, has ushered in a new era of convenience and efficiency in the world of financial services. This technology-driven platform offers users an array of benefits, including 24/7 availability, convenient financial transactions, organized statements and transaction histories, and a secure banking system. With easy access to a multitude of services, from fund transfers to investment management, net banking has transformed the way customers interact with their banks.
However, while internet banking offers numerous advantages, it is essential for users to exercise caution and adhere to security measures, such as avoiding public Wi-Fi, keeping anti-virus software updated, and regularly changing passwords. By following these guidelines, users can enjoy the full spectrum of services provided by net banking while keeping their financial data safe and secure.
Overall, net banking stands as a testament to the digital transformation of the banking industry, providing unparalleled accessibility and convenience for customers in their financial endeavors.