It is a form of banking in which funds are transferred through an exchange of electronic signals between financial institutions, rather than an exchange of cash, checks or other negotiable instruments.
The growth in use of the Internet world-wide and the development of procedures enabling secure transactions on-line have created the new field of on-line banking, where customers deal with their banks chiefly or entirely through Internet connections.
With the expansion of global Information and Communication Technology (ICT) infrastructure and the internet, e-banking is set to play a pivotal role in the national economic development of any country.
But appropriate software, technology, infrastructure, skilled manpower, and cyber law are crucial for the implementation of e-banking in the country.
The need of Electronic Banking was felt in South Asia during the last 5 to 7 years.
This concept emerged as an essential tool for successful bank management.The software allows customers to connect to bank’s computers over a secure network.The customer essentially dials directly into the bank instead of through the Internet.Since on-line banking services can be accessed with equal ease almost anywhere in the developed world, this raises the possibility of banking networks operating without regard to national boundaries, with consequent regulatory problems.Banking on line, commonly called PC banking, electronic banking or Internet banking, has been around in one form or another for a decade or more.Following can be the ways to bank on-line: 1) Internet Based access to account information through banks’ web site, via modem, using a standard web browser such as Microsoft Internet Explorer or Netscape Navigator.2) Bank Software: Bank provides customers with proprietary software to install in their computers.E-banking takes just minutes to setup an on- line bill payment; and bills are paid directly from bank checking account.Disclaimer: This work has been submitted by a student.In some instances, this card may also be an ATM card.This is similar to using a credit card, but with one important exception: the money for the purchase is transferred immediately — or very shortly — from customer’s bank account to the store’s account.