E-Banking

E-banking is a form of banking where funds are transferred through an exchange of electronic signals between financial institution, rather than exchange of cash, checks or other negotiable instruments. Electronic banking means 24-hours access to cash through an Automated Teller Machine (ATM) or Direct Deposit of paychecks

into checkings or savings accounts.

1) ATM
An ATM is simply a data terminal with two input and four output devices. Like any
other data terminal, the ATM has to connect to, and communicate through, a host
processor. The host processor is analogous to an Internet Service Provider (ISP) in that it is the gateway through which all the various ATM networks become available to the cardholder (the person wanting the cash). ATM has two input devices- card reader and keypad. An ATM has four output devices- Speaker, Display screen, Receipt printer, cash dispenser.

2) TELEBANKING
Tele-banking is a form of remote banking which is essentially the delivery of branch
financial services via telecommunication devices where the bank customer can perform retail transactions by dialing a touch-tone telephone or mobile communication unit, which is connected to an automated system of the bank by utilizing Automated Voice Response (AVR) technology. The use of Tele-banking is easy and confidential. All you need is a push button telephone, your account number, and your Personal Identification Number (PIN), which you select on your first call and can change at any time. Tele-banking will provide you the following services:
• Checking account balance
Interest rates related information etc.


3) ONLINE BANKING
Banks are considering online banking as a powerful “value added” tool to attract and
retain new customers while helping to eliminate costly paper handling and teller
interactions in an increasingly competitive banking environment. Online banking
(Internet banking) is a term used for performing transactions, payments etc. over the
internet through a bank’s secure website. This is very useful especially outside
banking hours.


4) CREDIT CARD/DEBIT CARD
A credit card is an instrument which provides credit facilities to its holder to avail variety of goods and services at the merchant outlets. It is made of plastic hence called plastic money.
Three parties to a credit card are issuing bank , card holder and member establishments.
Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. An individual has to open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). When he makes a purchase, he enters his PIN on shops PIN pad. When the card is swipe through the electronic terminal, it dials the acquiring bank system - either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. The customer can never overspend because the system rejects any transaction which exceeds the balance in his account.