Internet has made it easier for banks to facilitate banking for their customers online. Customers can now operate their bank accounts, carry out balance enquiry, transfer funds or provide standing instructions to banks almost instantly from wherever they feel like. This can be done with the help of net banking or internet banking by accessing the net banking portal of the specific bank.
An account holder just needs to provide a few details to register and carry out transactions without any handholding by the bank. It is accessed by a username and password and sometimes an additional code or OTP is required to authorize a fund transfer. Internet banking has made providing banking services cost-effective and decisions are now data-driven. Read on to know everything about net banking.
What is Net Banking
Net-banking, also known as internet banking, is an electronic system managed by banks which enables customers to access financial as well as non-financial banking products online. Earlier, customers had to visit the banks even for a small service. However, after the arrival of internet banking, almost all the services and products can be accessed online. From fund transfer to requesting demand draft, net-banking facilities, and all banking essentials. It is not just convenient but also a secure method of banking.
Services Available on Net Banking Portal
How does Net Banking Work
To benefit from net-banking, customers are required to register for internet banking at the bank.
- Individuals having a savings account or current account at any bank can register for internet banking
- For net-banking to work properly, you need a personal computer, laptop or mobile, and good internet connection
- After registering, a unique customer ID and password are issued by the bank using which one can log-in to the net-banking portal
Features of Net Banking
Given below are some of the key features of Net Banking:
- A secure and convenient method of banking
- Password-protected banking system
- Easy access to financial and non-financial banking products/services
- Access your bank account anytime anywhere
- Track and manage bank balance, last transactions, statements, etc.
- Transfer funds online via NEFT, RTGS, IMPS anytime
- Process bill payments quickly
- Keep a track of payments, personal loans, home loans, business loans, credit cards, savings account, etc.
- Channelize 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.
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 on Net Banking
Net-banking allows the transfer of funds from one account to another through three different ways- NEFT, RTGS and IMPS. Let us understand these three methods in details-
National Electronic Fund Transfer (NEFT) is one of the most commonly used payment methods which enables one-to-one fund transfer. It is a time-restricted process at the bank, but available 24×7 on the net-banking portals. Generally, it takes about 30 minutes for the funds to be successfully transferred via NEFT. However, the time can even stretch to 2-3 hours.
Real-Time Gross Settlement (RTGS) refers to a continuous settlement of funds individually on an order-by-order basis. This implies that the RTGS system ensures that the beneficiary’s account is credited with the funds immediately. Transactions via RTGS are monitored by the RBI which suggests that successful transfers are irrevocable. This method is used to transfer a minimum of Rs.2 lakh. Just like NEFT, RTGS is also a time-restricted service at the bank, but accessible 24×7 via net-banking.
Immediate Payment System (IMPS) also deals in the real-time transfer of funds. It is most commonly used to transfer funds instantly within banks across India via mobile, internet and ATM. One can transfer funds via IMPS just with the mobile number of the beneficiary.
What is E-Banking
E-banking or Electronic Banking refers to all the forms of banking services and transactions performed through electronic means. It allows individuals, institutions and businesses to access their accounts, transact business, or obtain information on various financial products and services via a public or private network, including the internet.
Popular Types of e-banking Services in India
- Internet Banking:It is the type of electronic banking service which enables customers to perform several financial and non-financial transactions via the internet. With internet or online banking or net-banking, customers can transfer funds to another bank account, check account balance, view bank statements, pay utility bills, and much more
- Mobile Banking: This electronic banking system enables customers to perform financial and non-financial transactions via mobile phone. Most of the banks have launched their mobile banking applications available on Google Playstore and Apple App Store. Just like the net-banking portal, customers can use the mobile application to access banking services.
- ATM: Automated Teller Machines (ATM) is one of the most popular types of e-banking. ATMs allow customers to withdraw funds, deposit money, change Debit Card PIN, and other banking services. To make use of an ATM, the user must have a password. Banks charge a nominal fee from the customers on every transaction made after crossing the specified limit of free transactions if the transaction is done from any other bank’s ATM.
- Debit Cards: Almost every person owns a debit card. This card is connected to your bank account and you can go cashless with this card. You can use your debit card for all types of transactions, the transaction amount is debited from your account instantly
- Deposit and Withdraws (Direct): This service under e-banking offers the customer a facility to approve paychecks regularly to the account. The customer can give the bank an authority to deduct funds from his/her account to pay bills, instalments of any kind, insurance payments, and many more
- Pay by Phone Systems:This service allows the customer to contact his/her bank to request them for any bill payment or to transfer funds to some other account
- Point-of-Sale Transfer Terminals:This service allows customers to pay for the purchase through a debit/credit card instantly
Services Provided through E-banking in India
|Telephone Banking||ATMs (Automated Teller Machine)|
|Electronic Clearing Cards||Mobile Banking|
|Door-step Banking||Bill Payment|
|Funds Transfer||Internet Banking|
|Electronic Funds Transfer System||Electronic Clearing Service|
Comparison Between Net Banking and E-Banking
Internet banking and electronic banking are often confused with each other. Let us compare the two for better understanding:
|Definition||Internet banking or online banking or net-banking is a digital system which enables customers of a bank or a financial institution to make financial or non-financial transactions online via the internet. On the other hand, E-banking or Electronic Banking refers to all the forms of banking services and transactions performed through electronic means.||Electronic banking or E-banking is a broad category of accessing banking services via electronic means, whereas Internet banking is a part or type of electronic banking. It is also known as electronic funds transfer (EFT) and uses electronic means to transfer funds directly from one account to another.|
|Types of Services||With internet banking, customers can obtain every banking service, traditionally available through a local branch including fund transfers, deposits, and online bill payments to the customers.||Electronic banking includes various transaction services such as internet banking, mobile banking, telebanking, ATMs, debit cards, and credit cards. Internet banking is one of the latest additions to electronic banking.|
How to Transfer Funds via Net Banking
The process of transferring funds via net-banking is mostly the same for the banks. Here is a simple step-by-step guide to transferring funds online via net-banking:
Step 1: Use your customer ID and password to log-in to your bank’s official net-banking portal
Step 2: Navigate to the ‘Transfer Funds’ option and select the method of transfer – NEFT, RTGS, or IMPS. If you are selecting NEFT, you need to make sure that the beneficiary’s bank is NEFT enabled
Step 3: Select the beneficiary. If you haven’t already added the beneficiary, click on ‘Add Beneficiary’
Step 4: Enter the beneficiary’s name, account number, IFSC, and bank’s branch name. Click ‘Submit & Save’ to add the beneficiary to your list
Step 5: Enter the amount which you wish to transfer
Step 6: Authenticate the process by entering the one-time password sent to your mobile number
Step 7: Click ‘Confirm & Send’. The money will be transferred to the beneficiary’s account
Note: You will receive a confirmation message/mail from your bank regarding the successful transfer of funds.
How to Make Credit Card Bill Payments via Net Banking
Net Banking is one of the most convenient, safest and secure ways of paying your credit card bills. There is no additional fee like a service or transaction fee charged while making bill payments via internet banking. Moreover, net-banking has been embedded with extra security measures to make the transactions secure. Here is how you can make credit card payments via Net Banking-
Step 1: Log-in to your credit card provider’s website
Step 2: Click on ‘Pay your Credit Card bill’ option
Step 3: Enter your credit card details such as credit card number, email address, and the payment amount
Step 4: You will be redirected to the payment gateway. Select the ‘Net Banking’ option and the choose the bank account from which you want to make the payment
Step 5: On the next screen, you will be redirected to your bank’s payment interface
Step 6: Enter your customer ID and password. Authenticate the transaction by entering the one-time password received on your mobile number
Step 7: Click ‘Confirm’. Your bank account will be debited with the amount which you have entered for bill payment. After a successful transaction, you will receive a confirmation message via SMS and email
*Important: Make sure that the URL of your bank’s payment gateway starts with ‘https://’ which indicates that you are using a secure website.
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.
Advantages of Net Baking
Given below are some advantages/benefits of internet banking available for all the users-
- 24×7 Availability:Availability of banking services is time-restricted at the bank. However, net-banking caters to customer’s banking requirements 24×7. One can access any banking service at any time, from anywhere via net Now, customers need not visit the bank to access banking services as everything is within a click’s reach.
- Convenient Financial Transactions: Financial transactions such as fund transfer, bill payments, recharges, etc. are the most used services on net-banking. This is because net-banking has made the entire process of payments very easy. Such transactions can easily be performed anytime as per the convenience of the user.
- Organized Statements and Transaction History:Keeping a track of the transaction and bank balance was so complicated before net-banking came into action. Customers had to visit the bank, stand in queues to update the passbook and check details. Nonetheless, with internet banking, it has become very easy to track historical transactions and outstanding balance. Transactions and fund transfers made via net-banking are organized in the ‘Transaction History’ section along with other details such as payee’s name, bank account number, the amount paid, the date and time of payment, and remarks.
- Secure Banking System:Your net-banking account as well as financial transactions are secured with log-in and transaction password. Some bank’s net-banking portals use two-factor authentication to secure the account. Ergo, internet banking is a secure payment system for customers.
- Access to Other Services:Besides fund transfer, net-banking enables customers to use non-financial services such as balance check, requesting demand draft, issuance of cheque books, applying for a personal loan, tax payment, open FD/RD deposits, start investments, check mortgages, manage a trading account, and more.
Q. How can I access net banking?
Ans. Individuals with an operating account in any bank or financial institution can access net-banking. For that, you need to register for internet banking to obtain a unique ID and password. You can download a net-banking application form from your bank’s official net-banking website and submit the same at the bank.
Q. Can I change my net banking password?
Ans. Yes, you can change your net-banking password whenever you want. It is suggested that users should change the password at least once every two months. Also, after logging in to the net-banking portal for the first time, all the users must change the password which is issued by the bank.
Q. What precautions should be taken while using net banking?
Ans. While using net banking, you must make sure of a few things-
- Avoid using public Wi-Fi
- Always use authentic anti-virus software
- The operating system of your smartphone or device should be updated
- Change your login password at least once in two months
- Avoid logging in to your net-banking portal via mailers
- Do not use public computers to log in to the net-banking portal
Q. What is user ID in net-banking?
Ans. Your unique user ID is just like your name which acts as your identity. Most of the banks provide internet banking ID and password as and when you apply for a new account. In case you haven’t received your user ID and password, you need to apply for net-banking at the bank by filling and submitting an application form. After verification, you will receive your credentials to log in to net banking.
Q. What is the fee charged for availing net banking facility?
Ans. There are no charges levied by banks to provide net banking facility.
Q. Can netbanking users avail mobile banking?
Ans. Yes, net banking users can avail mobile banking.
Q. Do I have to visit the branch for registering for netbanking?
Ans. No, there is no need to visit the branch for registering for net banking. You can simply activate your net banking with the provided customer ID at the time of opening the account.
Q. Can I manage multiple accounts using the same netbanking profile?
Ans. Yes, you can manage multiple accounts using the same net banking profile. Your customer ID will remain the same but your account number will be different. You can select the account number from which you want to make transactions.
Q. How do I connect to a netbanking account?
Ans. You can connect to a net banking account by visiting the official website of your bank and registering for net banking using the customer ID, account number and other relevant details.
Q. Is ATM card needed for net banking?
Ans. No, you do not need an ATM card for net banking. However, you may have to use your ATM card details for setting up the account or changing your banking password in many cases.
Q. Is it mandatory to provide mobile number for netbanking?
Ans. Yes, it is mandatory to provide mobile number for net banking to generate OTP for accessing net banking services.
Q. How can I check my account balance via net banking?
Ans. You can check your account balance by logging in to your net banking account under ‘Account details’.