CONTENT
What is E-banking?
Development of E-banking
RBI & E-banking
Advantages of the E-Banking
Disadvantages and Risk of E-banking
Precaution of risk and security
Persecutions
What is E-banking?
Definition:
The provision of banking service through
electronic channels and the customer can access
the data without time and geographical limitation.
Development of E-banking
1980s :
- Rapid development of the Internet
- TCP/IP system (communication system)
- E-commerce
Development of E-banking
May 1995 :
Wells Fargo - the first bank in the world to offer
customer access to their accounts over the internet
.
Allows customer to see their accounts online
Development of E-banking
ICICI was the first bank to initiate the Internet
banking revolution in India as early as 1997 under the
brand name 'Infinity'.
ICICI Bank kicked off online banking way back in
1996 . But even for the Internet as a whole, 1996 to
1998 marked the adoption phase, while usage
increased only in 1999-due to lower ISP online
charges, increased PC penetration and a tech-friendly
atmosphere.
RBI & E-Banking
The Reserve Bank of India constituted a
working group on Internet Banking. The
group divided the internet banking
products in India into 3 types based on
the levels of access granted. They are:-
i) Information Only System:
ii) Electronic Information Transfer
System:
iii) Fully Electronic Transactional
Information Only System: General
purpose information like interest rates,
branch location, bank products and their
features, loan and deposit calculations are
provided in the banks website. There exist
facilities for downloading various types of
application forms. The communication is
normally done through e-mail. There is no
interaction between the customer and
bank's application system. No identification
of the customer is done. In this system,
there is no possibility of any unauthorized
person getting into production systems of
Electronic Information Transfer
System: The system provides customer-
specific information in the form of account
balances, transaction details, and
statement of accounts. The information is
still largely of the 'read only' format.
Identification and authentication of the
customer is through password. The
information is fetched from the bank's
application system either in batch mode or
off-line. The application systems cannot
directly access through the internet.
Fully Electronic Transactional
System: This system allows bi-
directional capabilities. Transactions can
be submitted by the customer for online
update. This system requires high
degree of security and control. In this
environment, web server and
application systems are linked over
secure infrastructure. It comprises
technology covering computerization,
networking and security, inter-bank
different services provided under
e-banking
ONLINE BILL PERSONAL HOME PAGE
PAYMENT INVESTMENT SERVICES
SHOPPING ONLINE APPLICATIONS
TICKET BOOKING PERSONAL UPDADATE
PRE PAID MOBILE
RECHARGE
MARKET WATCH
SERVICE PROVIDED BY sbi
Self-account funds LIC and other insurance
transfer across India. premia payments,
Third party transfers in SBI Mutual funds
the same branch Investments
New account opening Remit Subscription to PPF
account,
Demand Draft requests
Credit card dues
Standing instructions payments,
New Cheque-book Deposit your taxes,
request and much more
Donations to your
Railway tickets booking, religious inspirations
Utility bill payments Donations to Red Cross
and such other
organisations
Setting up SMS alerts for
SERVICE PROVIDED BY icici
BILL PAYMENT CONVERT TO EMI
FUND TRANSFER A/C TO CARD
ACCOUNT TRANSFER
INFORMATION PREPAID MOBILE
SMART MONEY RECHARGE
ORDER ACCOUNT TRANSFER
SERVICE REQUEST
Advantages of E-banking
v Benefits for Banks
v Benefits for Small to Medium Businesses
v Benefits for Customers
Benefits for Banks
Larger customer coverage
Reducing the costs of operations
Promoting their services and products
internationally
Increasing the customer satisfaction and providing a
personalized relationship with customers
Benefits for Small to Medium Businesses
To run its operations more effectively
Lower cost than traditional financial
management mechanisms
Benefits for Customers
Convenience
- 24 hours a day, seven days a week
Cost
- Reducing transfer fees
Speed
- Faster circulation of assets
Competitiveness
- Fostering competition in financial market
Benefits for Customers
Communication
communicate easily
Environmental
Abolishing the uses of paper
Others
- Offering one-stop-shop solutions
Disadvantages OF E-banking
Ø A need for customer skill to deal with computers
and browsers.
E.g. Elderly, Housewives → Inconvenient
Ø Site change it will make the customer have some
confusion or delay.
Ø Security Risk
Security Risk
Increasing number of fraudulent bank websites
Fake emails purporting to be sent from banks
Use of Trojan Horse programs to capture user IDs
and passwords
Fraudulent Bank Websites
A suspicious bank website:
www.sbionline.com
Original bank website
www.onlinesbi.com
These website are believed to aim to trick persons
into disclosing their sensitive personal information
Fake e-mails
Email send from
Fraudulent bank
Verify the
personal information
Guide customer
enter the fraud link
Disclosing their
ATM card numbers
and their passwords
Viruses and Worms-Trojan Horse Program
When we open
some suspicious
websites or email
Trojan Horse Program
will install our
computer secretly
Hidden in the computer
When you access
bank websites
Capture our
account and
the password
Case F rom Ne wsp aper
Don’t use the hyperlink
to login to the website of
banks
Should deeply check the
postscript of the website
Observe that is it have
the encryption and
compare the login
account of encryption
cert is equal to the bank.
Persecutions
For Bank:
Should provide specific guidance to their
customers
For Customers :
Should not disclose their customer IDs (e.g.,
account numbers) or passwords to anyone else.
Periodically change their passwords
Should promptly log out from the service
Should regularly check their account balances and
statements to identify unusual transactions.
Do not access Corporate Cyber banking through
public terminals.
To safeguard your computer from any other
hacker attack, install anti-virus and anti-spyware
software on your computer and update it
regularly.
THANK YOU
