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CONTENT

What is E-banking? of E-banking & E-banking of the E-Banking and Risk of E-banking

Development RBI

Advantages

Disadvantages Precaution

of risk and security

Persecutions

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What is E-banking?
Definition: The provision of banking service through electronic channels and the customer can access the data without time and geographical limitation.

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Development of E-banking
1980s : - Rapid development of the Internet - TCP/IP system (communication system) - E-commerce

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Development of E-banking
May 1995 : Wells Fargo - the first bank in the world to offer customer access to their accounts over the internet .
Allows

customer to see their accounts online

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Development of E-banking
ICICI

was the first bank to initiate the Internet banking revolution in India as early as 1997 under the brand name 'Infinity'. Bank kicked off online banking way back in 1996 . But even for the Internet as a whole, 1996 to 1998 marked the adoption phase, while usage increased only in 1999-due to lower ISP online charges, increased PC penetration and a tech-friendly atmosphere.

ICICI

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RBI & E-Banking

The

Reserve Bank of India constituted a working group on Internet Banking. The group divided the internet banking products in India into 3 types based on the levels of access granted. They are:i) Information Only System: ii) Electronic Information Transfer System: iii) Fully Electronic Transactional System:

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Information

Only System: General purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There exist facilities for downloading various types of application forms. The communication is normally done through e-mail. There is no interaction between the customer and bank's application system. No

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Electronic

Information Transfer System: The system provides customer- specific information in the form of account balances, transaction details, and statement of accounts. The information is still largely of the 'read only' format. Identification and authentication of the customer is through password. The information is fetched from the bank's application system either in batch mode or off-line.

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Fully

Electronic Transactional System: This system allows bidirectional capabilities. Transactions can be submitted by the customer for online update. This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure. It comprises technology covering computerization, networking and security, inter-bank

different services provided under e-banking

ONLINE

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BILL PAYMENT BOOKING

PERSONAL

HOME

PAGE

SHOPPING TICKET PRE

INVESTMENT SERVICES APPLICATIONS

PAID MOBILE RECHARGE WATCH

ONLINE PERSONAL

MARKET

UPDADATE

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SERVICE PROVIDED BY sbi

LIC and other Self-account

insurance premium

payments, funds transfer across India. SBI Mutual funds Investments to PPF account,
Credit

Third party Remit Subscription

transfers in the payments, card dues same branch Deposit your taxes, New account Donations to your religious inspirations opening Donations to Red Cross and such other Demand Draft organisations

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SERVICE PROVIDED BY icici

BILL PAYMENT CONVERT TO EMI FUND TRANSFER A/C TO CARD TRANSFER ACCOUNT INFORMATION PREPAID MOBILE RECHARGE SMART MONEY ORDER ACCOUNT TRANSFER SERVICE

REQUEST

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Advantages of E-banking
v

Benefits for Banks Benefits for Small to Medium Businesses Benefits for Customers

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Benefits for Banks

Larger customer coverage Reducing the costs of operations Promoting their services and products internationally Increasing the customer satisfaction and providing a personalized relationship with customers

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To run its operations more effectively Lower cost than traditional financial management mechanisms

Benefits for Customers

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Convenience - 24 hours a day, seven days a week Cost Reducing transfer fees Speed Faster circulation of assets

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Benefits for Customers

Communication
-

communicate easily Environmental

Abolishing the uses of paper Others

- Offering one-stop-shop solutions

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Disadvantages OF E-banking

A need for customer skill to deal with computers and browsers. E.g. Elderly, Housewives Inconvenient

Site change it will make the customer have some confusion or delay. Security Risk

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Security Risk
Increasing

number of fraudulent bank websites

Fake

emails purporting to be sent from banks

Use

of Trojan Horse programs to capture user IDs and passwords

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Fraudulent Bank Websites

A suspicious

bank website: www.sbionline.com Original bank website www.onlinesbi.com These website are believed to aim to trick persons into disclosing their sensitive personal information

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Fake e-mails
Email

send from Fraudulent bank Verify the personal information Guide customer enter the fraud link Disclosing their ATM card numbers and their passwords

Viruses and Worms-Trojan Horse Program

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When

we open some suspicious websites or email Trojan Horse Program will install our computer secretly Hidden in the computer When you access bank websites Capture our

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Case From Newspaper

Dont

banks

use the hyperlink to login to the website of

Should

deeply check the postscript of the website

Observe

that is it have the encryption and compare the login account of encryption cert is equal to the bank.

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Persecutions
For Bank:
Should

provide specific guidance to their customers

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For Customers :
Should

not disclose their customer IDs (e.g., account numbers) or passwords to anyone else. change their passwords promptly log out from the service

Periodically Should Should

regularly check their account balances and statements to identify unusual transactions.

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Do not access Corporate Cyber banking through public terminals. To safeguard your computer from any other hacker attack, install anti-virus and anti-spyware software on your computer and update it regularly.

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THANK YOU