Technology has started playing its part in each and every aspect of our lives. Right from the moment we wake up in the morning to the moment we head back to bed at night, we have technology all around us. From shopping for groceries, paying utility bills, learning to play a new instrument, finding an electrician, getting food delivered etc, technology provides a solution for almost everything anyone could possibly ever imagine.
Banking is definitely something that has been advanced with the help of technology. Internet banking has made life easier for people all around the world. Online banking has allowed customers to perform simple tasks like accessing their bank account, keeping track of their account balance, getting transactional statements, paying bills online, shopping online, transferring money and much more in less than a few clicks and within a matter of minutes.
Net banking and e-wallet
Digital payments have seen a huge surge with the onset of digitalization, more and more people have realised the convenience of making payments digitally. This is where mobile wallets and internet banking actually play an integral role and ultimately changing the process of money transactions globally.
What is Net banking?
Net banking, otherwise known as internet banking or e banking or online banking is a facility offered by banks and other financial organizations that allow customers to utilize banking services like online money transfer, account opening, bill payment, tracking account activity etc using the internet. This takes care of customers each and every banking need without having to visit the bank’s offices and branches. The customer just has to use the registered customer ID and password to login and use their net banking account at any time and anywhere around the world.
What is an e-wallet?
An e-wallet is a virtual digital wallet where you can transfer an amount of money to be used later without the need for swiping any debit or credit card. It is one of the fastest modes of transaction and does not require a minimum deposit amount that is usually needed in banks. E-wallets can be used to purchase anything and from anywhere around the world 24×7. The mobile wallets can be used for paying utility bills, cab rides, movie tickets, mobile recharges etc.These e-wallet apps can be downloaded and used on mobile phones, iPads and tablets.
Net banking vs e-wallet
|● No transaction limit and amount as much as in the bank account can be used for transactions.||● A transactional limit of 20,000 per month is mandatory as per the RBI.|
|● This is a highly secure mode of transaction and provides maximum protection from frauds and scams.||● This provides low to medium protection from frauds and scams.|
|● No extra usage charges by the banks||● No extra usage charges except for occasional bank withdrawal charges|
Advantages of Net banking:
- The Convenience to be able to access one’s bank account and transfer funds from anywhere 24×7.
- Allows payment of utility bills (electricity, telephone, mobile phone, etc.) online hassle-free. Also, one can create a monthly reminder to pay the bills on time.
- Money Transfer can be done by anyone from one’s bank account to another account within the same bank or a different bank anywhere in the world just by logging into the bank account, specifying the payee’s name, account number, bank branch along with the amount and it will get transferred in a day or two.
- Makes shopping possible at one’s fingertips. A customer can purchase electronics, clothes, essentials, groceries and other services online and make the payment easily.
- Offers the customer to open a fixed deposit with their bank online. Also, if a customer has a demat account, a linked bank account and a trading account, one can buy or sell shares online too. Additionally, some banks allow customers to buy and sell mutual fund units from their online platforms as well.
- Helps in reducing errors like bad handwriting, mistaken information, etc. that usually happens during the regular banking transactions, which can prove costly and lead to lots of time wastage.
- Helps in safeguarding by providing a digital footprint for anyone who has the right to modify and indulge in the banking activities concerned to a particular account. Hence gives a better visibility into the transactions, making it difficult for any fraudsters and scammers to play mischief.
- Provides activity tracking by recording all the transactions one performs on a bank’s internet banking portal which can be shown as a proof of any transaction if needed. Details such as the payee’s name, bank account number, the amount paid, the date and time of payment, and remarks are always recorded for the customer’s benefit.