E-BANKING

Advantages & Disadvantages

 Flow of presentation
• Introduction
• Evolution of e-banking
• Features of e-banking
• Type of online banking
• Recent trend of e-banking in india
• Advantages and disadvantages
• Conclusion
 Introduction
• The conventional functions of banking are confined to
accept deposits and to lend money through loans and
advances
• Present banking scenario has come up with a lot of new
initiatives which are oriented to provide a better
customer service and facilities with the help of
information technology
 Introduction

• E-banking in simple terms means, it does not involve

any physical exchange of money, but it's all done
electronically, from one account to another, using the
Internet
What is e-banking?
E-commerce
Conducting business through e-banking

E-finance
E-money
Providing finance service through
Prepaid payment mechanisms
e-banking

Other financial services

E-banking
and products

Internet banking The difference between e-money

and e-banking is that, with e-
Mobile banking
money, balances are kept in
Other e- delivery channel financial account with bank
 Evolution of e-banking in India
• The concept of web-based banking came into existence
in Europe and USA in the beginning of 1980s
• Opening up of economy in 1991 marked the entry of
foreign banks
• They brought new technology with them
 Evolution of e-banking in India
• The ICICI Bank kicked off online banking in 1996.
1996 to 1998 marked the adoption phase, while usage
increased only in 1999
 Types of online banking
• ATM banking • Debit card & credit card
 Types of online banking
• Digital wallet • Digital cash
 Types of online banking
• NEFT (National Electronic Fund Transfer)
• RTGS (Real Time Gross Settlement)
• IMPS (Immediate Payment Service)
• ECS (Electronic Clearing System)
• Mobile banking
 Features of E-Banking

• Easy Electronic Fund transfer facility.

• Better efficiency in Customer relationship management.
• Making the Payments of bills.
• It introduces innovative banking products & services.
 ICICI - Infinity
• In 1997, ICICI launched 'Infinity,'
the first Indian Internet banking
service
• The service was launched to
reduce transaction cost and offer
convenient banking to customers
 ICICI-infinity
• ICICI bought the ‘bank away’ software from Infosys
• Bank away was an e-commerce solution
• It provided the bank a platform to offer an integrated
financial services portal to the customers
 ICICI-infinity services
• The products were targeted at two different customers
• Individuals
• small businesses, and corporates having an annual
turnover of over Rest 500 million.
 ICICI-infinity services

Account information e-shopping payments

Communication with
Funds transfer
bank manager

Bill payments Various customized

services
 e-Nam with ICICI bank
• e-Nam participants are doing
payments through traditional ways
via bank
• Farmers have started trading online
within mandi
• We want online payments to be
smooth and without any delay
e-Nam with ICICI bank
• Therefore, ICICI Bank has been
roped in as a banker for e- Nam
• ICICI Bank use BHIM (Bharat
Interface for Money) and Unified
Payments Interface (UPI) on the
e-NAM portal for making
cashless payments
 One nation one card
• On 4th March 2019, Govt. launches the National
Common Mobility Card (NCMC) called “One Nation
One Card”
• The main aim of this card is to make the payment
system easier for all mode of public transport
 Trend of e-banking in India
• ATM deployed by the banks in India.
No. of ATM
250000
199954 207813 207920
200000 182480
162543
150000
116378
No of ATM
100000

50000

0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
Sources : www.rbi.org.in/trend and progress of banking in India
 Trend of e-banking in India
Mobile banking transaction in form of Value (Billion)
16000 14378.54
14000 13104.76

12000
10000
8000
Value (Billion)
6000
4040.91
4000
2000 1035.3
59.9 224.18
0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
Sources : www.rbi.org.in/trend and progress of banking in India
 Trend of e-banking in India
No. of Credit cards issued (million)
37.78
40
35 30.37
30 24.86
25 21.28
19.55 19.22
20 Credit Cards
15 Linear (Credit Cards)
10
5
0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Sources : www.rbi.org.in/trend and progress of banking in India

 Trend of e-banking in India
No. of Debit cards issued (million)
1000 906
900 780
800 671
700 564
600
500 399 Debit Cards
400 336
Linear (Debit Cards)
300
200
100
0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Sources : www.rbi.org.in/trend and progress of banking in India

 Trend of e-banking in India
NEFT transaction in form of volume(million)
2500
1946.36
2000
1622.88
1500 1252.88
NEFT
927.55
1000 661.01 Linear (NEFT)
394.13
500

0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Sources : www.rbi.org.in/trend and progress of banking in India

 Trend of e-banking in India
RTGS transaction in form of volume(million)
140 124.46
120 107.86
98.34
92.78
100 81.11
80 68.52
RTGS
60
Linear (RTGS)
40
20
0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Sources : www.rbi.org.in/trend and progress of banking in India

Advantages of e-banking

Benefits for bank

Benefits for small to medium

business

Benefits for customers

 Benefits for bank

• Larger customer coverage

• Reducing the costs of operations
• Promoting their services
& products internationally
• Increasing the customer satisfaction
 Benefits for small to medium
business
• To run its operations more
effectively
• Cost benefits
 Benefits for customer
• Comfort and convenience
• Banking from anywhere
• Cost effective
• Faster transaction
• Pay bills and do more
 Disadvantages of e-banking
• Lacking of personal • Lacking of awareness?
contact You are easy to target!
 Disadvantages of e-banking
• Security is concern. • Transaction issues
News room
 Conclusion
• Finally, the study concludes that E-banking is need of
the hour
• It is golden path for banking sector in India to
maximize its profits and also the customer base
• Now a day e-banking is like ‘need to have’ than ‘nice to
have’
 References
• D Suhas and Ramesh H N., ‘E-banking and its growth in India-
A synoptic view’, Journal of Management Research and
Analysis , October-December , 5(4)2018
• Jindal Shubhara, ‘Study of E-Banking Scenario in India’,
International Journal of Science and Research,5(12)2016
• www.icicibank.com
• www.rbi.org.in
Thank you..