Key Features and Advantages of Internet Banking
03 Jul 2023
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Internet banking, also known as online banking or e-banking, has become a default mode of banking transactions for most individuals and businesses to manage their finances. With the advancement of technology, internet banking has revolutionized the way people conduct their banking transactions. The bouquet of features of Internet banking makes the banking experience more convenient and efficient. These features have made this mode of banking popular among account holders. So, what are the online banking advantages and disadvantages? Keep scrolling!
Features of Internet Banking
While the features of Internet banking may differ among different banks, here are some of the primary features of online banking that most account holders can enjoy:
- Account Management: Users can view their account balances, transaction history, and account details online. They can also manage multiple accounts, such as current accounts, savings accounts, credit card accounts and loans from a single online platform.
- Fund Transfers: Another significant advantage of using Internet banking is online fund transfers. Internet banking allows users to transfer funds through different modes like NEFT, RTGS, IMPS or UPI. Funds can be transferred between their own accounts as well as to other accounts within the same bank or to accounts in different banks. Fund transfers can be done in real-time depending upon the mode of transaction selected.
- Bill Payment: Users can pay their bills online using internet banking. These include utility bills, credit card bills or even loan repayments. They can also recharge prepaid mobile phones, purchase gift cards and make other online payments.
- Online Statements and Alerts: Internet banking provides users with access to their account statements online. This eliminates the need for paper statements or updating passbooks. Users can also set up alerts and notifications to receive updates on their account activities. Online statements are also one of the key benefits of online banking for banks as it helps them avoid unnecessary queues.
What are the Advantages of Internet Banking?
Internet banking offers ample advantages that make it a preferred mode of transaction among individuals and businesses. Some of the key advantages of internet banking include:
- Transferring Funds: Internet banking allows users to transfer funds quickly. Funds can be seamlessly transferred between own accounts or to other accounts, including accounts in different banks, in just a few clicks. This eliminates the need for physical visits to the bank and provides greater convenience and efficiency in undertaking banking transactions.
- Availability: One of the key benefits of internet banking is that it is available 24x7. This allows users to access their accounts and perform transactions at their convenience anytime, anywhere. This provides flexibility and accessibility, especially for users who may not have easy access to physical bank branches.
- Easy to Operate: Another benefit of net banking is that internet banking platforms are designed to be user-friendly. The intuitive interfaces make it easy for users to navigate through the platform and perform transactions. Most platforms also provide tutorials and customer support to assist users in using the service effectively.
- Convenience: Internet banking eliminates the need for physical visits to the bank. This saves significant user time and effort. Users can perform transactions from the comfort of their home or office.
- Activity Tracking: Net banking features provide users with the ability to track their account activities on a real-time basis. Users can view their transaction history, account balances and other account details on-the-go. This provides them with greater visibility and control over their finances.
What are the Limitations or Disadvantages of Internet Banking?
While there are numerous advantages of e-banking, there are also some limitations and disadvantages of using internet banking.
- Internet Requirement: A major drawback of online banking is that it relies on internet connectivity. Users need to have a stable and secure internet connection for accessing their accounts.
- Secure Passwords: Internet banking requires users to create and manage passwords to prevent any unauthorized access. Weak passwords or inadequate internet banking security features can put users' accounts at risk of hacking, identity theft or other internet banking frauds.
- Complex Transactions: While the functions of internet banking offer convenience and efficiency, there are certain complexities associated with it. This can include setting up beneficiaries, providing additional identification documents or signing physical forms to access internet banking services.
Things to Consider When Using Internet Banking
To ensure a safe and secure internet banking experience, users should consider the following tips:
- Use Secure Devices: Users should only access their internet banking accounts from trusted and secure devices like personal computers or mobile devices with updated security software. Public computers or shared devices may not be secure and one should refrain from using them for internet banking transactions.
- Password Protection: Users should create strong and unique passwords for their internet banking accounts. One should avoid sharing them. It is also advisable to change passwords regularly and enable two-factor authentication.
- Be Cautious of Phishing Attempts: Users should be wary of receiving emails, text messages or phone calls asking for their personal or account information. These could be phishing attempts by scammers trying to gain unauthorised access to their accounts. Users should never provide their personal or account information through unsolicited communications. No legitimate bank or financial institution would ask for personal or banking information over phone calls or emails.
- Keep Track of Account Activities: Users should regularly monitor their account activities and review their transaction history to detect any unauthorised or suspicious transactions. In case any discrepancy is found, users should report them to their bank immediately.
In a Nutshell
There are multiple advantages of net banking that make managing finances convenient and efficient. However, users should also be aware of the limitations and potential risks associated with the functions of internet banking. Taking appropriate precautions to safeguard accounts is important in this online era.
The security features of e-banking offered by the bank are instrumental in providing a secure banking experience. Bank of Baroda gives prime importance to the security of its customers and has deployed the highest-level security features to ensure that users’ confidential information is not compromised.
BOB World Internet is Bank of Baroda’s internet banking facility that caters to one's banking needs 24x7. Open a BOB account now!
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