Net Banking - What is Internet Banking? Features & Advantages of Internet Banking

Internet banking allows you to manage your finances online without visiting a bank branch, offering services from checking balances to transferring funds and paying bills. 

To access net banking, you would need to register. This article will guide you through registering and activating your net banking account, along with its features, benefits, limitations, and essential safety tips to keep you and your financial information safe.

What is Internet Banking?

Internet banking (also known as online banking, net banking, or e-banking) is a facility offered by banks that allows customers to use banking services over the Internet instead of visiting the bank for every small service. This enables you to handle your finances at the tip of your finger anywhere. If you want to access internet banking, you must register for the facility. Only then can you log in to your internet banking account with your registered customer ID and password. 

Features of Internet Banking

• Check the account statement online.
• Open a fixed deposit account.
• Pay utility bills such as water bill and electricity bill.
• Make merchant payments.
• Transfer funds.
• Order for a cheque book.
• Buy general insurance.
• Recharge prepaid mobile/DTH.

How to Register and Activate a Net Banking Account

Step 1: Go to the bank’s official net banking website.

Step 2: Click on the login button or the ‘New User/Register Here’ link.

Step 3: Log in using your credentials if you're already registered. If not, fill in the self-registration form with some required details: 

• Account number
• Registered mobile number
• CIF number
• Debit card details (card number, expiry, etc.)
• Any other information the bank requires

Step 4: Enter the OTP sent to your registered mobile number and click “Submit”.

Step 5: Use the temporary customer ID and password to log in.

Step 6: You can then set up your new login credentials, such as a username and a strong password. You may also be asked to choose security questions and provide answers.

Step 7: You must then agree to the terms and conditions, and then proceed to click on “Submit”

Step 7: Upon registration, you will receive a confirmation message.

Step 8: Log in to your net banking account using your new credentials. 

Advantages of Internet Banking

• 24/7 Accessibility

You can access your bank account anytime and anywhere. Whether you're checking your balance, reviewing a transaction, or downloading a mini statement, Internet Banking allows you to manage your finances without visiting a branch.

• Efficient Fund Transfers

Using services like NEFT, RTGS, and IMPS, you can easily transfer funds between accounts or to others. Everything is streamlined and instant, often with minimal or zero fees, facilitating quick and hassle-free transactions. 

• Bill Payments and Recharges

You can pay your utility bills, recharge mobile phones, and manage other recurring payments all in one place, instantly. You can also set up autopay for recurring bills to ensure they are paid on time.

• Account Management

You can update contact details, check interest statements for tax purposes, and even block or reissue debit/credit cards without visiting the branch.

• Cost Savings

Online banking can reduce or eliminate certain fees associated with traditional banking, such as those for paper statements or in-person transactions, saving you both time and money.

Limitations of Internet Banking

• Internet Dependency

A stable internet connection is essential. Without it, accessing banking services becomes challenging. 

• Security Concerns

Despite many security measures, such as encryption and two-factor authentication, online banking can still be vulnerable to cyber threats, such as phishing emails, hacking, malware, and fake websites, which can compromise one’s financial information. Users must remain vigilant and aware of safe online practices.

• Limited Personal Interaction

It can be a drawback for customers who prefer personalised service or need help with complex transactions. The lack of face-to-face interaction and reliance on bots instead of humans may feel impersonal or frustrating for those who value human support.

• Challenges for Some Users

Elderly individuals or those unfamiliar with digital platforms or technology may find online banking difficult. This can create accessibility issues, leaving certain sections of the population underserved.

Tips for Safe Net Banking

• Use a strong password and change it regularly.
• Enable two-factor authentication for added protection.
• Avoid using public Wi-Fi while accessing net banking.
• Monitor your account frequently for any suspicious activity.
• Do not click on unknown or suspicious links and emails.
• Install and update antivirus software on your devices.
• Always log out after completing your banking session.
• Access net banking only through the official bank website or app.

Related Articles:
1. Citibank Mobile Banking
2. ICICI Bank Mobile Banking
3. Axis Bank Mobile Banking
4. HSBC Mobile Banking
5. HDFC Mobile Banking
6. Digital Banking