E-banking and recent trends in India


The banking system had had a dynamic structure. It has changed with time and tide which has not only made the economy stronger but also made the life of the customer much easier than before. You and I witness these changes in our day to day life by using a number of new banking facilities. The trend in banking has taken the biggest turn during the year 1969 when 14 major banks were nationalized. The aim was to make banking facilities availed to all the sectors of the society and to transfer it from a few hands, enjoying the monopoly, to the hands of the government. The two significant aspects of nationalization were first, growth and second eliminated the regional imbalance by making the credit facility available to small scale industries, farmers and rural men. Now, with the efflux of time and adoption of Information Technology, the banking business has reached a greater height. Banks put up a website that provides general information on banks, locations, products, services available and etc.

What is E-banking?

The simple way to define the E-banking is banking through the means of internet. Through e-banking customer can access his account through his mobile phone or computer. It includes fund transfer to another bank or within the same, any investment, and account related details or to avail any services all through the means of internet.

Previously, the customers had to stand in a long queue to avail of the bank transaction. In fact, customers were ignorant about the services or the products of the banks. But today, by just one click we can avail of the easily transfer the funds and manage our accounts.

The e-banking services are offered by the means of:-

1. Automatic Teller Machine

2. Debit Cards

3. Credit Cards


5. Mobile Banking

Automatic Teller Machine

It is also called ATM. An ATM is a computerized machine installed in different places that helps the customer to make financial transactions without going to the bank branches. To avail, this service customer has to obtain the ATM card or debit card from the specified bank. The services like depositing and withdrawing of cash, mini statement (which shows the account activity), issue of passbooks, check the balance inquires, etc. The system is recognized as “Any Time Money” or “Anywhere Money”.


• It is very helpful in the metropolitan city.

• The major importance of ATM is customer can access their account from any bank’s ATM machine and for foreign travellers.

• When the money is withdrawn in any foreign nation the currency gets converted at the financial institution exchange rate and the customer gets the money without any delay.


• Loss of card or password so necessary care needs to be taken.

• Proper knowledge to access the machine.

• The chances of theft also increase in fact it has been increased. There have been instances where the ATM machine has been stolen by the thieves which make a great loss to the banks.

Debit Card

A debit card is a plastic card with encryption on its debit card number, name of the bank and cardholder. A cardholder can just swipe his card to make card payments at various shops. A debit card has reduced the paper money transaction. People prefer more to carry just one card instead of carrying money and coins. But to access debit card one must have balance in his account. The Debit cards are used in the ATM machine to withdraw and deposit the cash.

It is of many forms like Visa card, Master Card, Rupay card, etc.

Credit Card

It is the same as the debit card. The two differences are

First, there is no need to maintain balance in the account as there is a balance or say credit provided by the bank to the customer to use whenever necessary. Later, the bank debits the amount from the customer account.

It is basically a post-paid card.


It is defined as the continuous settlement of funds transfer separately on an order by order basis. It is mainly for large value transactions (2 lakhs be the minimum).

Mobile Banking

The customer uses mobile for banking transactions it includes Google pay, Paytm, PayPal, etc. The customer needs to download the application and then link it with the bank account. It is totally password secured. Nowadays the most used is mobile banking either for purchasing online or paying at shops or restaurants. The best part which attracts the customer the most the ‘cash back or reward or gift or coupons receive’.

Importance of E-banking

1. The customer can easily get access to his accounts anywhere and anytime.

2. The transaction is safer and secure.

3. E-banking transaction is easier and quicker.

4. It saves the valuable time of the customer.

5. It has also reduced paperwork. It’s more eco-friendly.

 Disadvantage of E-banking

1. E-banking has also leads to an increase in cyber-crime like spyware, internet theft, etc.

2. Insufficient knowledge of using electronic banking.

3. The risk of maintaining the secrecy.

“The views of the authors are personal

Frequently Asked Questions:-

What is the difference between e-banking and internet banking?

There is not any major difference between internet banking and e-banking. It’s just e-banking is a broader term than internet banking. ATM, mobile banking, RTGS it is all included in e-banking.

What is the difference between traditional banking and e-banking?

The answer includes all the points above mentioned in the importance of e-banking.

Which bank is the first to offer internet banking?

ICICI is the first bank to offer internet banking to their customers in the year 1997.

Aditi Anand
I am Aditi Anand pursuing my BLS LLb from KES Jayantilal H Patel Law College , Mumbai University . Currently I am in my Vlllth Semester. I have chosen law as my career as this field have a dynamic characteristics which fills me with an enthusiasm and attracts me the most. The sections of law like Constitutional Law, Criminal Law, Civil ( property and contract) are preferred the most. Infact, these days I am heading my interest towards the taxation Laws. During my law school I have been a part of many debate, Moot and writing competition where I have achieved my best results. I always love to keep myself updated with the current socio- eco and political situation Beside this I am good debater and leader with good supervising and managing skills . During my leisure time I like to read, chit chat , watch movies /series , baking and to teach.