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Monday, 22 October 2012

What is electronic banking and discuss the scope and advantages of Electronic banking






Electronic Banking :-
In simple words we can say that the delivery of banking services to the customers by using the electronic communication like internet is called electronic banking. Electronic banking is not only the ATM facility but it provides all other banking services like payments, purchase and sale without visiting physically to the banks.


Scope Of Electronic Banking :-
To day the customer demands the services of banks 24 hours where he lives even he is in the airplane.

Now in this modern age the entire banking structure has been changed due to widespread internet technology. Now all the business like commerce, trade, import, export, purchase and sale of goods is relying upon electronic banking. By using the advance electronic technology the banking services are fast and economical.

There is a saving time an saving of money in the use of E.banking. If any country wants to work in the world market, it will have to improve the banking services at international level because old traditional banking is not acceptable in the changing global economy.

The online banking facility has been provided by the large number of commercial banks. On other hand credit card facility is also available in the various commercial banks. Now every bank wants to attract the customers and for this purpose the offers the latest facilities so i seems that no any bank will survive in the market if he fails to provide up date facilities.


ADVANTAGES OF ELECTRONIC BANKING :-
Now it is also called on line or home banking electronic banking was stared with the use of proprietary software. Following are the important advantages of electronic banking :

1. Paper Work Reduced :-
The traditional procedure of banking is manual and paper based. Electronic banking is gradually replacing the paper transactions in the banks which has reduced the paper work.

2. Easy Transactions :-
Electronic banking has reduced the problems of the customers like writing cheques, filing taxes, and transforming of cash. Now in ATM facility there is no need of cheque book.

3. Security :-
Electronic banking provides the safe system of payment. Now transactions are made in the accounts through internet.

4. Saving Of Time :-
Electronic banking has saved the time and money of the customers and also the bank. Now burden of work on bank employees has been also reduced. were hired at higher wages, so operating cost was very high. Now by using electronic banking the number of employees has been reduced.

5.Reduction In Cost :-
In case of manual banking, large number of employees were hired at higher wages, so operating cost was very high. Now by using electronic banking the number of employees has been reduced.

6. Market Expanded :-
Due to electronic banking, national international market of various goods and services has been expanded. Now we can purchases and make payment in any place in the world.

7. Increase In Customers :-
As the banking industry is expanding due the modern facilities, it is attracting more and more customers. So number of customers are increasing day by day.

8. Branches Reduced :-

Now there is no need to open the branches on every place in the city because due to electronic banking facilities, there is no rush of customers in the banks. Because there is no need to visit the bank physically. So heavy cost of opening the new branches has been reduced and facilities are provided at low cost.

9. Checking Of Account :-
Every customer can check his balance of account sitting at home and makes the payments without traveling. It saves his time and expenses.

10. Utility Bills Payment :-
Bills, like telephone, gas, electricity and water can be easily paid to the concerned departments without going to the bank physically. Even he is sitting in any other country, he can make the payment.

11. Transferring Of Money :-
There is no need of writing the deposit slip cheques and drafts. By using the electronic banking money can be transferred easily.

12. Credit Cards :-

It is also very important facility for the customers that he can purchase the goods and ca make the payment by using the credit cards.

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