Understanding the different types of internet banking
Internet Banking also referred to as i-banking or net banking, is a provision that banks offer so that you can enjoy various banking services via the internet. This method of banking reduces your dependence on bank branches. You can access domestic and international fund transfer facilities, make utility bill payments, create fixed deposits, and do so much more via internet banking. The Reserve Bank of India (RBI) has classified internet banking services into three types. Let us access the different types of net banking services available in India.
The different types of internet banking services are based on various levels of facilities offered by banks. Following are the 3 main types of internet banking levels.
Transactional Internet Banking is the type of internet banking service that deals with all the money-based or payment transaction services. You typically need an active internet banking account and password to conduct money-based transactions like fund transfers, credit card bill payments, utility bill payments, creating term deposits, and investing in market securities. Transactional internet banking has streamlined fund transfers in India by introducing facilities like NEFT, RTGS and IMPS. These fund transfer channels enable instant fund transfers with varying minimum and maximum transaction limits. Let us understand them briefly.
Informational internet banking is also known as basic-level net banking. Basic level refers to a bank’s website, which provides information on various products and services it offers. You, as a customer, get limited access to general information available on the website and can send queries for detailed information via email. Typically, informational internet banking encompasses the basic banking provisions like the various types of accounts, loan offerings, priority banking facilities, real estate projects affiliated with the bank, nearest bank branch and ATM locations, etc.
In this type of internet banking service, banks allow you to perform simple, communicative functions such as applying for various services like loans and raising queries regarding your account balances. Communication between the bank and the customer takes place via virtual chatbots. These chatbots are equipped to provide you with general information and redirect you to the customer care department if needed. You can make general inquiries about minimum balance requirements, fund transfers, types of bank accounts and cards provided, etc.
Now that you know about the various internet banking types, you can use your preferred facilities based on your needs. At the heart of internet banking lies the idea that you can conduct all kinds of transactions and get access to whatever information you need without ever stepping foot in the bank. Internet banking has indeed made the banking process convenient. So, ensure you sign up for the service when you open your bank account.
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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.