Let’s first have a conversation on what net banking is. In the simple words, we can monitor our bank account online and even carry out transactions with net banking.
This electronic payment system frees us of the task of physically going to a bank. We can carry out multiple transactions on the bank/financial institution’s website is with the click of the mouse.
Financial institutions and banks have their own websites, built up beautifully enhanced by user friendliness. These websites can be accessed with utter ease, and are fully secure.
Time is Money! Net banking actually saves a lot of your time and your money!
Benefits of net banking are endless. Be it starting a new account online, or starting a retirement account, or move money into a holiday savings account or applying for loans, everything is easy and accessible to us.
Many financial institutions also have live customer service through Internet chat.
Even Gifts and pre-loaded debit cards can be ordered through Internet banking services.
Ways in which Net banking saves a great deal of time: –
- 1. We do not have to encircle dates on the calendar for going to our local financial institutions. Going to a bank, leads to a transportation cost. But with Net banking in place, Transferring funds, paying bills, all of this is managed from home.
- With net banking, you will never have to stand in cues waiting for the other person to get done with his work. The moment you finish a transaction, the net banking system processes it.
- 2. Monthly bills can be made on time. Financial planning is much easier now. There is an option for automated payment as well. By setting up vendor information and choosing a monthly repayment date, you cannot possibly forget to repay.
- 3. The paper work is zero. Writing checks, cross –checking envelopes to be sent, filling forms manually will all be just not required.
- 4. When you have made all or most of the payments, you will need fewer checks. You will not spend time on ordering check books, and waiting for them too.
- 5. Net banking is available all the time for 24 hours. You would not have to race to the bank before it shuts down. You also would not be disappointed on a bank holiday.
- 6.Fund transfer from one account to another will also be a swift process. This happens within 24 to 48 hours depending on the bank’s policies. This saves considerable time, wherein you have to write a check from one account, and subsequently deposit into another account.
7. Net Banking can be carried out via NEFT, IMPS and RTGS. We will quickly explain what each of them stands for.
a. NEFT – National Electronic Funds Transfer is usually used to transfer small amounts. The minimum amount could be Rs 1, but the maximum is 10 lakh. The transfer protocols are managed by RBI. In this process funds are transferred in batches.
The operational hours are 8am to 6:30 pm on weekdays, and 8am to 12:30 pm on Saturday in hourly batches. Timings might vary a bit depending upon the different banks. Transactions carried out during this time slot are settled within the same day, and the ones carried out later are carried out the next day. So when a person transfers money from one account to another, it would not be instantly credited. It would be done in the next settlement cycle that happens at 60 minutes intervals.
- b. RTGS or Real Time Gross Settlement- Here the fund transfer takes place between bank accounts in real time. RTGS is a fast process, and is handled by huge organisations for real time transactions. So basically as soon as the transaction is processed the funds are credited to the beneficiary. Here RBI manages the transfer protocols. Here the minimum amount should be 2 lakhs, and the maximum amount would be 10 lakhs.
c. IMPS stands for Immediate payment services. Through this mechanism, you can transfer money using the mobile phone. Numerous banks allow transactional transfer through this mechanism. It is also being extended through other channels such as ATM, Internet Banking, etc.
Here the minimum amount is Rs 1 and maximum is 2 lakh.
There are different transactional charges involved too for transferring cash to and from the account in all of these cases.Hope we have helped you in getting a better understanding of net banking.
We want you to direct your expenses better, and control your money in the most efficient and time-saving fashion.
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- a. NEFT – National Electronic Funds Transfer is usually used to transfer small amounts. The minimum amount could be Rs 1, but the maximum is 10 lakh. The transfer protocols are managed by RBI. In this process funds are transferred in batches.