Doorstep Banking

it is a facility provided that the customers don’t have visit their bank branch for their routine banking activities like cash deposits, cash withdrawal, cheque deposit or making a demand draft .

Mchq product

this is an innovative product in banking which is popular in japan and other asian countries.it is a mobile to mobile payment option . in this , the mobile phone used as a wallet . while shopping , the mobile number is given to the dealer who would send as SMS on a special mobile phone to the server of the mobile service provider.in india some banks like ICICI bank have offered this facility to its customers.

E-purse

Electronic purse or e-purse is a type of smart card , with an embedded micro chip , provides multiple options such as payment by debit card or credit card.it is a state-of-the-art cash on card which facilitates purchase of goods and payment for services . in other words , cash is stored electronically on a micro chip. it can place cash for small payments.

features of e-purse

• it is issued by banks to their customers
• money is transferred from the customers account to the e-purse using a load device
• the transaction is protected by PIN
• payment of e-purse may be online or offline
• the money in the e-purse can be used by the card holder for making payments

Advantages

• bankers can reduce cash and cheque handling cost
• customers need not keep cash to make payments
• it provides privacy
• it is more flexible and more accessible
• it is useful than debit and credit cards

Disadvantages

• the banker may charge for using e-purse
• merchants do not favor this form of payments
• technical limitations
• it may be misused

Cheque Truncation System

it is an online image based cheque clearing system where cheque images and magnetic ink character (MICR) data are captured in the collecting bank branch and transmitted electronically. under this method instead of sending the cheque to the drawee branch, an electronic image of the cheque is sent to the branch along with the relevant information like the MICR fields, date of presentation, presenting bank ..etc.

Advantages of cheque Truncation System

• realization of proceeds of cheque is possible within the same day
• it offer better verification process and better customer service
• it provides increased operational efficiency
• reduction of man power work in reduction of error
• increased customer satisfaction
• it reduces the cost of collection

Tele- banking

it is a service provided by banks which enables customers of the bank to perform financial transactions over the telephone without the need to visit a bank branch or ATM.to access telephone banking the customer would call the special phone number set by the bank and enter on the keypad the customer number and the password.it may includes obtaining account balances , list of latest transactions , electronic bill payments and fund transfers.

Mobile banking

mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc ) .with the introduction of smart phones , banks started to offer mobile banking with the help of mobile .

the typical mobile banking services are:

• mini statement and checking of account history
• alerts on account activity
• monitoring of term deposits
• access to loan statements
• access to card statements
• mutual funds and equity statements
• pension plan management
• stop payment of cheques
• ordering cheque book
• balance checking in accounts
• recent transactions
• due date of payments
• change of PIN
• blocking of card lost or stolen

Advantages and disadvantages of online banking

Advantages of online banking

• customers can get 24 hours service on all days
• it increases customers convenience
• it reduces the operational cost of the bank
• it provides speedy services to customers
• it reduces the pressure of bank staff
• it provides banks an opportunity to have access to a wider market
• it eliminates costly paper processing
• it ensure privacy of banking transactions
• bank provides better services to customers such as online trading, online shopping, online tx payment…etc.

disadvantages of online banking

• it can be used only by customers who have accessibility to internet
• security issues
• all banking transactions can not be performed electronically
• the banks have to incur high initial expenditure for setting up necessary infrastructure for internet banking
• the banks require 24 hours supportive environment and support of qualified technical staff which increases their cost of operations

Internet Banking

internet banking allows customers to conduct financial transactions with the bank through internet . thus internet banking is a platform for electronic delivery of banking services to customers . now customers can open account , pay bills, view account balances , transfer funds and do almost all transactions online. this is also known as online banking or virtual banking or everywhere banking.

to access online banking , the customer would go to the bank’s website , and enter the online banking facility using the customer number and password.

facilities offered by online banking are follows

• account details
• fund transfer
• request services
• investment services
• value added services

Smart card & its advantages

smart card is also known as chip cards use a different technology. it contains a computer micro-chip embedded within the plastic unit provides unique capabilities . it offers consumers the ability to hold multiple applications on a single card. so a customer need not carry different card for different use. when a transaction is made using the smart card, the value is debited and the balance in the account of the customers come down automatically.

Advantages of smart card

• flexibility
• security
• portability
• increased data storage capacity
• reliability

Credit card

credit card is a plastic money which acts as an instrument of credits . it allows the holder to buy goods and services based on the holder’s promise to pay for those goods and services. the issuing bank creates a revolving account and grants credit to the customers from which he can borrow money for payment to a merchant or as a cash advance to the user. ex: visa card, mastercard.

Features of credit card

• it can be used as a ATM card to withdraw the money from account
• the credit allowed by the bank is to reimbursed by the customers to the bank within the specified period and the credit limit is automatically renewed.

Advantages of credit card

• there is no need for carrying cash while travelling
• shopping can be done very easily
• security and convenience
• it increases the purchasing power of the card holder
• card holders may get discounts on purchase made from certain well known tradres

Disadvantages of credit card

• there is a chance for fraud by unscrupulous people resulting in the loss of huge sums.
• a credit card holder may make unnecessary purchase because he is required to pay the amount only later. this may lead to overspending
• the high interest rates and other hidden charges may lead to financial difficulties to card holders.