CENTRE NAME: THAKUR HOUSE, KANDIVALI [EAST]

BATCH TIME: 08.00 AM TO 12.00 PM [ LAB 2 ]BATCH COMMENCEMENT DATE: 22nd Nov. 2010

Working of internet banking

Internet Banking.

Internet Banking – a new medium.

Types of Banking services offered through Internet.

Internet Banking for Online Purchases.

Payment of Bills through Internet Banking.

Internet Banking Products and Services Offered.

Internet Banking Frauds and How to prevent it?

How Safe is Internet Banking?

The levels of banking services offered through INTERNET can be categorized into three types:

1. The Basic Level Service is the bank’s websites which gives information on different products and services offered to customers. It may receive and reply to customers’ queries through e-mail.

2. In the next level are Simple Transactional Websites which allow customers to submit their instructions, applications for different services, queries on their account balances, etc, but do not permit any fund-based transactions on their accounts.

3. The third level of Internet banking services are offered by Fully Transactional Websites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc.

The above forms of Internet banking services are offered bytraditional banks, as an additional method of serving the customer orby new banks, who deliver banking services primarily throughInternet or other electronic delivery channels as the value addedservices.

TYPES OF BANKING SERVICES OFFERED THROUGH INTERNET

INTERNET BANKING FOR ONLINE PURCHASES

A typical procedure for bill payments

would be like this:

•First registered yourself for Personal

Internet Banking then simply log on and

select “Pay Bills.”

•From the menu choose ‘Add a Payee’ to

create your ‘payee’ list i.e. the companies you wish to

pay.Enter the name, address and account number for each.

Internet Banking will store the new payee information so

we will

only have to enter it once.

•Log on to Internet Banking when you want to pay a

bill, select the appropriate ‘payee’ from the list, then

enter the amount and the date of payment to be

processed.

•The bill payment will be processed on the date you

selected.

•Thus, if your bank provides online banking, opt for it.

You will certainly find internet banking easier than

visiting the bank personally.

INTERNET BANKING, PRODUCTS AND SERVICES OFFERED

Internet Banking other then traditional banking services have tied up with a number of utility Companies that allows online real time shopping mallpayments to be made by customers. Banks have madee-shopping Online and real time with the launch of itspayment gateway. It has tied up with a number of portals to offer business-to-consumer (B2C) ecommerce transactions.

Banks are positioning themselves as one stop financial shops. These banks have tied up with computer training companies, computer manufacturers, Internet Services Providers and portals for expanding their Net banking services, and widening their customer base. For ex. ICICI Bank Ltd. had set up a web based joint venture for on-line distribution of its retail banking products and services on the Internet, in collaboration with Satyam Infoway, through a portal named as icicisify.com. The customer base of www.satyamonline.com portal is also available to the bank.

In B2B scenario, a new form of e-commerce market place is emerging where various players in the production and distribution chain are positioning themselves. Banks are positioning themselves in such a market in order to be a part of the financial settlements arising out of transactions of this market and providing wholesale financial services.

Real Time Gross Settlement (RTGS) :

• Reserve Bank of India has taken the initiative for facilitating real time funds transfer through the Real Time Gross Settlement (RTGS) System. Under the RTGS system, transmission, processing and settlements of the instructions will be done on a continuous basis. Gross settlement in a real time mode eliminates credit and liquidity risks.

• Any member of the system will be able to access it through only one specified gateway in order to ensure rigorous access control measures at the user level. The system will have various levels of security, viz., Access security, 128 bit cryptography, firewall, certification etc. Further, Generic Architecture (see fig. 2), both domestic and cross border, aimed at providing inter-connectivity across banks has been accepted for implementation by RBI.

INTERNET BANKING FRAUDS AND HOW TO PREVENT IT

Is internet banking 100% secure? Unfortunately it is not. In spite of all the security measures, frauds do take place.

Types of Internet Banking Frauds are:

1. Identity Theft: Identity theft is one of the prominent type of internet banking fraud that can be extremely injurious to consumers. Identity theft in internet banking occurs when a criminal use specialized software (Trojans & key loggers) to record keystrokes on a victim’s computer in order to decipher personal financial information about the person. Theseinternet banking fraud criminals then use the stolen data to access the victim’s bank account to commit fraud.

Prevention:You can be safe from this type of fraud by periodically checking your computer for spywares, trojans and viruses. It is also suggested to use a personal firewall to prevent any un-wanted program from accessing internet.

2. Phishing Phishing operates by sending forged e-mail, impersonating an online bank that request personal banking or financial information. The e-mail thus sent will direct the user to a forged web site which is designed to look exactly like the original banking site. This site will ask the user to update their personal information. The information thus stolen is then used in other frauds as well as executing transactions.

Prevention:The best way to avoid this type of internet banking fraud is to never provide personal banking information over the internet when it is requested through email. If you believe that you may have provided information over the internet to an illegitimate source, immediately contact your bank to have Your password changed. It is because of same reason Banks never request your personal information through email. Thus, if you receive a message claiming from a bank, it would probably be from a fraudster.

3. Un-Protected Online TransactionsInternet banking fraud can also occur when consumers make online purchases over an unprotected website. If your privacy remains un-protected, criminals can use the stolen data to commit banking frauds.

Prevention:This type of fraud is becoming a rarity by the introduction on new generation browsers like FireFox 3 , IE 7 & Google Chrome. These browsers will warn you if you are visiting an un-protected website. In older browsers, you can view the digital SSL certificates of these websites. If these digital certificates are not from a reliable authority, you can be sure that the website you are visiting is an un-secured website.

RISING TREND

• Source: http://en.wikipedia.org/wiki/Online_banking• Source: http://www.moneyguideindia.com/internet-

banking-how-does-it-work/• http://www.answers.com/topic/internet-banking• Source: http://EzineArticles.com/?

expert=Garvit_Halwasiya

THANK

YOU!!!