Internet Banking-A detailed Guide on the Internet Banking System, procedure, Transaction Facilities and transaction Procedure ~ SAMPATKUMARI'S Blog "PARISHKAR"

Internet Banking-A detailed Guide on the Internet Banking System, procedure, Transaction Facilities and transaction Procedure

Internet Banking-A detailed Guide on the Banking System, procedure, Transaction Facilities and transaction Procedure-Internet banking or Online banking or net banking is a service provided by all the banks to their customers to make transactions sitting on their computers at their residence or office. All you need to use this service is, you must have an internet connection and an account with the bank. In all banks there are two categories of internet banking (1) Personal Banking and (2) Corporate Banking. Personal banking is free of charge and reasonable charges are levied on corporate Banking customers. There are different transaction limits for personnel and corporate segment customers. Customers are allowed to debit their Saving, Current, Overdraft accounts only but they can view their all accounts including loans and advances. They are also allowed to transfer to their loan and advances from their Saving, Current or Overdraft accounts. A customer having an account can transfer an amount to an account with any other bank. They can pay their various bill or dues like electricity bills, telephone bills, Insurance Premiums, various taxes, pay amounts of purchases made from private institutes or business houses.
Internet Banking-A detailed Guide on the Internet Banking System
Internet Banking-A detailed Guide on the Internet Banking System


How to get the Internet banking service activated-

Banks always try to play safe. This practice of the banks is in the interest of both the bank and the customer. Therefore, for activating online banking service you have to personally visit the branch where your account exists. Before visiting the branch please make sure that you have an active account with that branch and you are signatory of that account or in other words you must have transaction rights(To make withdrawals), If it is a joint account you must be the first holder of the account, otherwise all the joint holders will have to be present and sign the relevant agreements. After verifying all these things the bank will activate the service on your account and give you a sealed cover containing your user ID and pass word.

First Login-Internet Banking

After completing the formalities mentioned above your account will be active for online banking after the close of business of the bank of that day(At 12.00 hrs. Midnight of the same day). After that you have to login to your account from your house or office. For it go to the online banking/net banking site of the bank and follow the instructions. Here you may be asked to change the user ID and pass word and creation of pass word protected profile. Please follow as per banks rule and login. Now your account is ready for transactions.(Login Password and Profile/Transaction passwords will always be two different passwords.)

Types of Transactions Allowed in internet Banking

Banks have several types of transactions. You will be allowed to perform almost all types of transactions (other than cash transactions) like transfers to own accounts(Account in the same bank and linked with the net banking account), transfer to account of others in the same bank, account of others with other banks, opening new accounts including fixed deposit accounts, getting ATM cards, paying loan installments, paying telephone or electricity bills, paying insurance premiums, payig of various taxes, paying for online purchases and many other transactions.

Third Party Payments

All Payments/transactions other than payments to your own account are called the third party payments and banks apply a special security procedure for such transactions like OTP(One Time Password) and creation of third party, Registration of mobile phone in the account. For all these you will have to login to your profile.

OTP(One Time Password)

This is a temporary password and can be used once only. This password is necessary for transactions out side the banks and transactions of higher amounts. This amount differs bank to bank but in maximum banks it is Rs-20000-00 or more. This password is also necessary for creating a third party/beneficiary.

Creation of third party

Before transferring any amount to an account of an other person having an account with your own bank or an other banks you have to create a third party(You may create a third party for those having an account with a bank only). To create a third party(In some banks it is termed as create beneficiary), you will have to login to your profile, keep your registered mobile phone handy and click create/add third party. The third party creation form will open. Fill the form and submit. Now the bank will ask you the one time pass and at the same time you will receive an SMS on your mobile phone containing your one time password. Enter the password and submit. After this the bank will check it and approve the third party for transactions. This process may take a several hours.

NEFT(National Electronic Funds Transfer)

This is a method of transfer used by the banks to transfer amounts below Rs-200000-00(Two Lakhs) from the accounts held with them to the accounts in other banks. Their customers having internet banking service are also allowed to use this service. This system works under the control of the Reserve bank of India.

RTGS(Real Time Gross Settlement)

This is another method of transfer used by the banks to transfer amounts above Rs-200000-00(Two Lakhs) from the accounts held with them to the accounts in other banks. Their customers having internet banking service are also allowed to use this service. This system also works under the control of the Reserve bank of India. This system also differs from NEFT as it has a two hours defined limit for completion of the transactions. This system also works under the control of the Reserve bank of India.

How to make Internet Transactions

To carry out transaction is very easy. Login to your account and click payments/transfers. Select Own Accounts, NEFT or RTGS depending on your proposed amount of transaction and category of beneficiary, follow the simple instructions. You may need to enter the OTP(One Time Password) depending upon the type or amount of transaction and category of the beneficiary. Procedure of transactions of paying telephone or electricity bills, insurance premiums, paying for online purchases is a little different because these transactions will initiate at the site of the institution/business house to which you are paying. A broad idea is that there you will have to click the method of payment internet banking and then you will be asked to select your bank from the list appeared, now you will automatically directed to your bank’s internet banking site. You will be asked to login to your bank account using your ID and pass word. Your bank will display the amount of transaction and to whom it is being paid, you will be asked to confirm the data. Soon after confirming you will receive the OTP(One Time Password) on your registered Mobile phone, enter it in the space provided to confirm the transaction.

2 comments:

  1. The writer really deserves a sincere thanks for writing so detailed guide lines on such an important topic

    ReplyDelete
  2. A very good and comprehensive articleon the Internet Banking System, procedure, Transaction Facilities and transaction Procedure

    ReplyDelete