Table of contentsElectronic funds transfer (EFT)ATMsDebit cardsCredit cardsPayment cardsSmart cardsPayment and settlement systems and information technologyService functions electronic bankingA strong and efficient banking system is the backbone of an economy. A country's economy can function smoothly and without problems if the banking system supporting it is not only flexible but also capable of meeting new challenges posed by technology and other external and internal factors. The importance and role of information technology in achieving this benign goal cannot be underestimated. Technology holds the key to the future success of Indian banks. Thus, “Electronic Banking” is the need of the hour. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the Original Essay Online banking, also known as electronic banking or Internet banking, is an electronic payment system that allows customers of the bank and other financial institutions to carry out various types of financial transactions through the bank's website. E-banking has made it possible to carry out financial transactions with the click of a mouse. Banks offer a diverse range of electronic banking solutions to customers and financial institutions, such as checking account balance, electronic funds transfer, ordering checkbooks, statements, etc. banking services offer a diversity of services to customers and financial institutions with just a click of a mouse. Many technologies are used to provide electronic banking solutions. Electronic Funds Transfer (EFT) This facility offers you to make payments to account holders of other banks. efficiently and quickly. Unlike physical clearing, where checks are cleared upon presentation of the physical instrument to the clearing house, in EFT transactions are settled electronically. The EFT also offers you the possibility of moving your collections to an electronic platform, through which you can ask your dealers to pay by EFT, thus reducing the time to realize funds. Currently, the electronic funds transfer service is available in two modes and you can avail any of the following modes to transfer your funds: National Electronic Funds Transfer (NEFT): This is the mode of fastest funds transfer in which funds are credited to the beneficiary's account on the same day. It is offered by computerized branches of certain banks. EFT: This is the normal electronic funds transfer feature offered by banks. It is similar to NEFT in all respects except the transaction cycle time: an EFT transaction takes a minimum of 3 working days to be credited to the beneficiary's account whereas in NEFT the amount is credited on the same day of the transaction. transaction. The end-to-end transaction can be done through our corporate e-banking service, wherein the application can be submitted online, either in a single transaction or through file upload. Automated Teller MachinesAutomated teller machines are installed on every street corner these days. and corner in most cities. These are for balance inquiries, cash withdrawals and many other facilities depending on the bank's policies. This requires avalid customer ID and password to log in and therefore can be used securely. Despite the use of ATM cards, debit cards can also be used at ATMs. Debit Cards Debit cards are another advanced technology in electronic banking today. These cards are versatile and can be used at ATMs to check the balance and withdraw money or to make purchases easily at different counters. Debit cards guarantee automatic deduction of the amount from the account simply by scratching it on the machine. It's easier for consumers to shop and even carry cash with them. Credit Cards Credit cards, unlike debit cards, provide credit to consumers. A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not withdraw money from the user's account after each transaction. In the case of credit cards, the issuer lends money to the consumer (or user). It is also different from a charge card (although this name is sometimes used by the public to describe credit cards), which requires the balance to be paid in full each month. On the other hand, a credit card allows the consumer to “roll over” their balance, at the cost of interest charges. Most credit cards have the same shape and size as specified by ISO 7810. Credit Cards A credit card is a way of obtaining a very short-term loan (usually around 1 month) for a purchase. It is similar to a credit card, except that the contract with the card issuer requires the cardholder to pay the fees charged in full each month. There is no “minimum payment” other than the full balance. Since there is no loan, there is no official interest. Partial payment (or no payment) results in significant late fees (up to 5% of the balance) and possible restriction of future transactions or even cancellation of the card.Smart CardsA card used to store and retrieve information personal. , normally the size of a credit card and contains electronic memory and possibly a built-in integrated circuit. The card can be used to perform many tasks: Verify the holder of this card in order to access systems. Storing a patient's medical records Storing digital money To use a smart card, either to extract information from it or to add data to it, you need a smart card reader, a small device into which you insert the smart card.Payment and Settlement Systems and Information TechnologyThe development of payment and settlement systems that meet the best international standards has been a key objective of the Reserve Bank. A significant milestone was achieved in 2003-04 with the launch of Real Time Gross Settlement (RTGS) as an available mechanism for a fast, safe and secure electronic mode of funds transfer. Another important development is the preparation of the bill on payment and settlement systems. The legislation aims to provide a strong legal basis for the various payment and settlement systems operating in India and empowers the Reserve Bank to regulate and supervise these systems. It outlines the significant expansion of payment systems activity in India and its key drivers: retail payments and the growing popularity of card transactions,..