Advantages and Disadvantages of Internet Banking
Assessing the benefits of Internet Banking and the limitations.
- There are several advantages of internet banking and a few limitations.
- Internet banking allows you to access banking services on the web.
- You can initiate domestic and international fund transfers, pay bills and invest in Mutual Funds.
- You can also order cheque books, check account balances, and open fixed deposits.
- Cybercrimes for non-compliance with suggested security measures is a common disadvantage of internet banking.
Internet banking is an incredible invention. While it is available in almost all fields and industries, its presence in the banking sector has proven to be a game-changer. Internet banking has indeed transformed the way we conduct our bank transactions as we can avail of almost all kinds of banking facilities online. Let us assess the many wholesome benefits of internet banking along with a few limitations.
Advantages of Internet Banking
Some of the most prominent advantages of internet banking include the following:
With internet banking, you can transfer money from one account to another. You can initiate inter and intrabank fund transfers, domestically and internationally. You can send funds to beneficiaries within an hour using money transfer channels like NEFT, RTGS, and IMPS.
Another benefit of internet banking is that you can conveniently open fixed and recurring deposit accounts online. You can choose your preferred deposit type (cumulative or non-cumulative), amount, and investment term.
Paying Bills & Recharging
You can pay utility bills like electricity, telephone, gas, etc., from the comfort of your home and enable auto-debit options never to miss a payment. You can also effortlessly recharge your mobile and DTH connections through your internet banking account.
Tracking Account and Checking balances
You can constantly track your account and check account balances from anywhere, at any time, whether you are in India or overseas. You can get mini statements or download account statements from years ago under the ‘view account statement’ section on the internet banking platform.
Placing Orders For Bank Products
Internet banking also allows you to place orders for bank products like cheque Books and Bank Cards. You can order primary and add-on debit cards and even apply for credit cards and priority passes for international airport lounge access (if applicable).
You can enjoy a wide variety of add-on services, including buying or selling mutual funds, buying insurance policies, and applying for various types of loans. Your internet banking account also allows you to set auto-payments for all recurring expenses.
Disadvantages of Internet Banking
Like all things in life, internet banking also has a few disadvantages:
No Cashless Deposit Option
There is no provision for cash deposits. You must visit your nearest bank branch or cash deposit machine to deposit money.
Your access to Internet banking services can be hindered in the absence of a stable internet connection. It can also be affected when bank servers are down.
You could become a victim of internet fraud if you do not comply with the security measures prescribed by the bank, such as not setting strong passwords, sharing passwords, or not logging out from your internet banking account.
The above comparison of the advantages and disadvantages of internet banking makes it clear that the benefits outweigh the consequences. Remember to follow the necessary security guidelines to ensure your account is always safe. Doing so will allow you to enjoy a seamless internet banking experience.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.