DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Raja Sekhar Koduru
Designation : Lecturer In Ccp
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic For Women,
Kakinada, E.G. District
Year/Semester : 3rd Year – VI Semester
Subject : Banking II
Subejct Coce : Ccp-604(b)
Topic : Customer Services Offered By Bank
Duration : 50 Mts.
Sub Topic : Internet Banking Facilities
Teaching Aids : Power Point & Pictures
CCP604(B).27 1
Recap

 In the previous session we have learnt about

difference between debit cards and credit
cards

CCP604(B).27 2
Objectives:

On completion of this topic you will

be able to
 Define internet banking
 List the differences between Internet
banking and Traditional Banking
 Explain the services of internet banking

 List the advantages of internet banking

CCP604(B).27 3
Structure

 Known to Unknown
 Internet Banking
 Services of internet Banking
 Advantages of internet Banking
 Summary
 Quiz

 Assignment

CCP604(B).27 4
Known to Unknown

 Do you anything about Internet Banking ?

CCP604(B).27 5
Internet Banking
 WHAT IS INTERNET
 Internet is network of networks
 WHAT ARE USES OF INTERNET
 Internet is used to gather information
 Sending e-mail
 Receiving e-mail

CCP604(B).27 6
Internet Banking

Internet Banking Definition

 Internet is confined to sending, receiving mails
and gather information.
 Banking is no longer confined in the branches, as
customers are provided with additional delivery
channels viz ATMs.
 The other facilities offered by the modern bankers
are internet banking, tele-banking and mobile
banking etc.

CCP604(B).27 7
Internet Banking

Internet Banking Definition

 Banking transactions that takes place in a virtual
ambience on the website of a banking company is
termed as Internet Banking.

CCP604(B).27 8
Internet Banking

Internet Banking Definition

 The essence of Internet Banking lies in on-line
access by customers of banking.

CCP604(B).27 9
Internet Banking

Internet Banking Definition

 The essence of Internet Banking lies in on-line
access by customers of banking.

CCP604(B).27 10
Internet Banking

Internet Banking Vs. Traditional

Banking
 The customer has to visit the bank in
person for the basic banking needs –
whereas in Internet Banking, these
operations can be performed through the
Personal Computer without physically
visiting the bank branch

CCP604(B).27 11
Internet Banking

Internet Banking Vs. Traditional Banking

 It is a win-win solution both for customer and
the bank.
 The customer is not put to the inconvenience
of traveling.
 Thus he saves time and..
 So saved can be effectively utilized in other
productive ways.

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Internet Banking

Internet Banking Vs. Traditional

Banking
 At the same time, bank earns by having
lower overheads, establishment, premises
and maintenance costs, in turn resulting
into reduced per transaction cost.

CCP604(B).27 13
Internet Banking

Services Of Internet Banking

 Sending in request for a cheque book from

the convenience of home.
 Viewing accounting statement on-line
 Notification of change of address so as to
update the records.

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Internet Banking
Services Of Internet Banking
 Requesting for a draft on-line to be
couriered at the mailing address specified
by the customer.
 Transferring funds between one account of
the customer to another account of the
same customer
 View details of past three month’s
transactions

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Internet Banking

Services Of Internet Banking

 Updating of foreign exchange currency rates.
 Intimating on-line about a stop payment
 Notification of lost/stolen ATM card

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Internet Banking
Mechanics Of Internet Banking
 The basic steps involved in completing transaction
through Internet banking are extremely simple and
are available in user-friendly environment
 One does not necessarily need to posses detailed
computer knowledge to complete transaction
through Internet Banking
 The availability of user-friendly demo version of the
site as well as on-line help means that even first
time users are able to the use the facility

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Internet Banking
Mechanics Of Internet Banking
 The entire mechanism involved in Internet-
banking is outlined below:
 Access the bank’s website
 Click on the option which provides internet
banking
 Enter the user-ID, Password/PIN
 Perform the requisite transaction
 Logout

CCP604(B).27 18
 Customer

Internet Service Provider (ISP)

Accessing World Wide Web site

Logging in IBS (Internet Banking Service)

Performing banking Transactions

Logging out IBS

SERVER

CCP604(B).27 19

Bank
Internet Banking
Advantages Of Internet Banking
 The greatest advantage of internet banking
is that it enables a customer to perform
basic banking transactions through PC or
Laptop located anywhere in the world.
 Through the internet, customer access the
bank’s website for viewing the account
details or performing the basic banking
transactions.

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Internet Banking

Advantages Of Internet Banking

 The other major advantages emerging out of
internet are as follows:
 The customer can perform basic banking
transactions, round the clock.
 No personal visit to the branch is required
 One can access and operate one’s account from
anywhere in the world.

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Internet Banking
Advantages Of Internet Banking
 The requirement of staff at branches gets
optimized.
 Easy, convenient, efficient and speedy
banking services both for the bank and the
customer.
 Transaction is automatically reconciled
and posted in all required data tables, thus
reducing the work load.

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Internet Banking
Advantages Of Internet Banking
 It helps the customer to transfer funds
between any of his accounts easily.
 It facilitates to open a fixed deposit
account on the net.
 One can get bankers cheque, DD issued
from his account by providing details on
account to be debited, amount location
and beneficiary.

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Internet Banking
Advantages Of Internet Banking
 The bank also provides courier facility for
onward transmission of the banker’s
cheque/DD at the mailing address
specified by the customer.
 It helps customers by providing
information on the TDS (Tax deducted at
sources) on any of the concerned bank’s
branches for the current and/or previous
financial year.
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Internet Banking

Advantages Of Internet Banking

 One can request ‘stop payment’ on a
cheque or series of cheques on line.
 To do so, one needs to enter the
cheque number and the reason for
‘stop payment’
 One can use net banking to find out the
status of a specified cheque that has
been issued from any of the accounts.

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Internet Banking
Advantages Of Internet Banking
 One can request for a new cheque book
online.
 The cheque book will be couriered to the
address as per the records in the bank.
 One can easily find out the balance held in
any account including details on available
funds, un-cleared funds, ledger balance,
overdraft limit in net banking.

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Internet Banking
Advantages Of Internet Banking
 Customers can also collect statement via mail as
per records in the bank.
 It provide access to the details about his/her fixed
deposit viz.
 Principal balance
 Terms of deposit
 Rate of interest
 Maturity date
 Maturity amount
 Instructions for payment on maturity
 And lien amount
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Internet Banking

Advantages Of Internet Banking

 It is built up using the whole range of security
architecture including firewalls, filtering
routers, encryption and digital certification
 It ensures that only concerned customer can
have access to information

CCP604(B).27 28
Summary

 The internet banking is also known as Online

Banking
 Customer need not go to the bank or anywhere
 He can sit from his home or office and can
perform basic banking functions
 Banks also have the advantages of
 Location specific advantage
 Reduction in cost of services is possible

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Summary

 Simply to illustrate the headline of leaflet on

net banking of HDFC Bank read as
 “NEXT TIME DON’T WALK TO THE BANK
 …… SURF RIGHT IN”

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Frequently Asked Questions
1. Briefly explain the term Internet Banking
(4marks)
2. List out the services of Internet Banking
(4marks)
3. List the procedure of internet Banking.
(4 marks)
4. What are the advantages internet
Banking

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