Internet banking, also known as online banking, e-banking, or virtual banking, is an electronic payment system that enables customers of a financial institution to conduct a range of financial transactions through the bank’s/financial institution’s website. The Internet banking system typically connects to or is part of the core banking system operated by a bank and is in contrast to branch banking, such as the traditional way customers access banking services, according to http://pulaksinha.com.
With the proliferation of Internet banking, it is/will be difficult – even for those who are old enough — to remember a time when offline banking was all there was. Sending and receiving paper cheques, making trips to the bank to make a deposit or a withdrawal, working around the bank’s hours of operation in order to check or confirm your balance, and on and on it went. But the things are changing very fast and the number of Internet banking users has been growing rapidly.
It is not very far when Internet banking will become so mainstream that the thought of ever having to go back to the offline days will become wince-inducing, because of the convenience and ease the Internet banking provides.
How it works: To access a financial institution’s online banking facility, a customer with internet access would need to register with the institution for the service, and set up a password and other credentials for customer verification. The credentials for online banking are normally not the same as for telephone or mobile banking. Financial institutions now routinely allocate customers’ numbers, whether or not customers have indicated an intention to access their online banking facility. Customers’ IDs are normally not the same as account numbers because a number of customer accounts can be linked to the one customer ID. The customer ID can be linked to any account that the customer controls, such as current, savings and other accounts.