guys this is a very good and nice ppt on internet banking. it covers so many topics in very limited slide. it looks attractive due to fonts, pictures and colours used in this presentation. this presentation has good animations and looks beautiful and attractive.

1. APPLICATION IN BANKING
By-Abhishek Gupta

2. What is a Bank?What is a Bank?
• A bank is a financial institution that A bank is a financial institution that
accepts deposits and create credits.accepts deposits and create credits.
• Lending activities can be performed either Lending activities can be performed either
directly or indirectly through capital markets.directly or indirectly through capital markets.
• Due to their importance in the financial stability Due to their importance in the financial stability
of a country, banks are highly regulated in most of a country, banks are highly regulated in most
countries.countries.
• However, with the passage of time, the activities However, with the passage of time, the activities
covered by banking business have widened and covered by banking business have widened and
now various other services are also offered by now various other services are also offered by
banks.banks.

3.  The banking services these days include issuance of debit and The banking services these days include issuance of debit and
credit cards, providing safe custody of valuable items, credit cards, providing safe custody of valuable items,
lockers, ATM services and online transfer of funds across the lockers, ATM services and online transfer of funds across the
country / world.country / world.
 It is well said that banking plays a silent, yet crucial part in It is well said that banking plays a silent, yet crucial part in
our day-to-day lives. our day-to-day lives.
 Banking business has done wonders for the world Banking business has done wonders for the world
economy. The simple looking method of accepting economy. The simple looking method of accepting
money deposits from savers and then lending the money deposits from savers and then lending the
same money to borrowers, banking same money to borrowers, banking
activity encourages the flow of money to productive activity encourages the flow of money to productive
use and investments.use and investments.
 This in turn allows the economy to grow.This in turn allows the economy to grow.

4. TyPes Of BANKsTyPes Of BANKs
Commercial banks:-Commercial banks:-
Commercial banks are the banks that accepts money in the form ofCommercial banks are the banks that accepts money in the form of
deposits from the public and give loans and advances to its customersdeposits from the public and give loans and advances to its customers
by charging interest. They mobilize small savings and promote theby charging interest. They mobilize small savings and promote the
growth of trade and commerce. Generally, commercial banks lendgrowth of trade and commerce. Generally, commercial banks lend
money for a short period only. They only provide working capital to themoney for a short period only. They only provide working capital to the
organizations. But in recent times commercial banks are providing long-organizations. But in recent times commercial banks are providing long-
term capital also to the organizations.term capital also to the organizations.
There are several types of deposits which are accepted by theThere are several types of deposits which are accepted by the
commercial banks like:-commercial banks like:-
⦿⦿ Savings DepositsSavings Deposits
⦿ Current Deposits⦿ Current Deposits
⦿ Fixed Deposits⦿ Fixed Deposits
⦿ Seasonal Deposits⦿ Seasonal Deposits
⦿ Recurring Deposits, etc⦿ Recurring Deposits, etc

5. • Cooperative banks:-
Co-operative Banks are the banks that usually
provide short term, medium term, long term
credit to agricultural purposes.
Co-operative Banks also provides loans to
small-scale artisans. Co-operative Banks
usually provide credit facilities to farmers,
small-scale industries, etc at a cheaper
rate of interest. Co-operative Banks are
mainly situated in rural areas and can also
be seen in urban areas.
• Central banks:-
Every country has its own Central Bank. The Central bank aims at non
profit functioning. It regulates the monetary and credit system of the
country. Central Bank acts as controller, supervisor, and regulator of
the activities of commercial banks and other financial institutions in the
country. The Central bank is considered as the apex institution of the
country’s money market.

6. Functions of Central Bank:-Functions of Central Bank:-
⦿⦿ Note issueNote issue
⦿⦿ Credit controlCredit control
⦿⦿ It acts as a banker to the banksIt acts as a banker to the banks
⦿⦿ It acts as a banker to the governmentIt acts as a banker to the government
⦿⦿ It maintains the foreign exchange reserves of theIt maintains the foreign exchange reserves of the
countrycountry
⦿⦿ It maintains the Gold reserves of the countryIt maintains the Gold reserves of the country

7. What is Internet Banking?What is Internet Banking?
 Internet banking, also known as electronic paymentInternet banking, also known as electronic payment
system that enables customer of a bank or other financialsystem that enables customer of a bank or other financial
institution to conduct a range of financial institution’sinstitution to conduct a range of financial institution’s
website.website.
 The internet banking system will typically connect to orThe internet banking system will typically connect to or
be part of the core banking system operated by a bankbe part of the core banking system operated by a bank
and is in contrast to branch banking which was theand is in contrast to branch banking which was the
traditional way customers accessed banking services.traditional way customers accessed banking services.
 In internet banking system the bank has a centralizedIn internet banking system the bank has a centralized
database that is web-enabled. All the services that thedatabase that is web-enabled. All the services that the
bank has permitted on the internet are displayed in menu.bank has permitted on the internet are displayed in menu.
Any service can be selected and further interaction isAny service can be selected and further interaction is
dictated by the nature of servicedictated by the nature of service..

8.  The traditional branch model of bank is now giving placeThe traditional branch model of bank is now giving place
to an alternative delivery channels with ATM network.to an alternative delivery channels with ATM network.
 Once the branch offices of bankOnce the branch offices of bank
are interconnected throughare interconnected through
terrestrial or satellite links, thereterrestrial or satellite links, there
would be no physical identitywould be no physical identity
for any branch.for any branch.
 It would a borderlessIt would a borderless
entity permittingentity permitting
anytime, anywhere andanytime, anywhere and
anyhow banking.anyhow banking.

9. Development of E-bankingDevelopment of E-banking
• The concept of Internet banking has been
simultaneously evolving with the development
of the world wide web.
• Programmers working on
banking data bases came
up with ideas for online
banking transactions,
some time during the 1980's.
• The online shopping promoted the use of
credit cards through Internet.
• The first online banking service in United
States was introduced, in October 1994.

10. • In May 1995 : Wells Fargo - the first bank inIn May 1995 : Wells Fargo - the first bank in
the world to offer customer access to theirthe world to offer customer access to their
accounts over the internet (allows customeraccounts over the internet (allows customer
to see their accounts online).to see their accounts online).
• The online banking services are becomingThe online banking services are becoming
more and more prevalent due to the wellmore and more prevalent due to the well
developed systems.developed systems.

11. Objectives of Internet-BankingObjectives of Internet-Banking
1.To improve customer access.1.To improve customer access.
2.To facilitate the offering of more services.2.To facilitate the offering of more services.
3.To increase customer loyalty.3.To increase customer loyalty.
4.To attract large number4.To attract large number
of customers.of customers.
5.To provide cost-effective5.To provide cost-effective
services offered by competitors.services offered by competitors.
6.To reduce customer attrition6.To reduce customer attrition..

12. FeaturesFeatures
 Use Bank-to-Bank TransferUse Bank-to-Bank Transfer
 See your accountSee your account
transactions and historytransactions and history
 Pay bills without writingPay bills without writing
checkschecks
 Transfer money betweenTransfer money between
your accountsyour accounts
 Sign up for paperlessSign up for paperless
statementsstatements
 Set up account alerts andSet up account alerts and
remindersreminders
 View images of processedView images of processed
checkschecks
 View reportsView reports

13. RBI AND E-BANKINGRBI AND E-BANKING
 The Reserve Bank of India constituted aThe Reserve Bank of India constituted a
working group on Internet Banking.working group on Internet Banking.
 The group divided theThe group divided the
internet bankinginternet banking
products in India intoproducts in India into
3 types based on the3 types based on the
levels of access granted.levels of access granted.
 They are:-They are:-
i) Information Only Systemi) Information Only System
ii) Electronic Information Transfer Systemii) Electronic Information Transfer System
iii) Fully Electronic Transactional Systemiii) Fully Electronic Transactional System

14. Information Only SystemInformation Only System
 General purpose information like interestGeneral purpose information like interest
rates, branch location, bank products andrates, branch location, bank products and
their features, loan and deposittheir features, loan and deposit
calculations are provided in the bankscalculations are provided in the banks
website.website.
 There exist facilities for downloadingThere exist facilities for downloading
various types of application forms.various types of application forms.
 The communication is normally doneThe communication is normally done
through e-mail.through e-mail.
 There is no interaction between theThere is no interaction between the
customer and bank's application system.customer and bank's application system.

15. Electronic Information Transfer SystemElectronic Information Transfer System
The system provides customer- specificThe system provides customer- specific
information in the form of account balances,information in the form of account balances,
transaction details, and statement of accounts.transaction details, and statement of accounts.
The information is still largely of the 'read only'The information is still largely of the 'read only'
format. Identification and authentication of theformat. Identification and authentication of the
customer is through password.customer is through password.
The information is fetched from the bank'sThe information is fetched from the bank's
application system either in batch mode orapplication system either in batch mode or
offline.offline.
The application systems cannot directly accessThe application systems cannot directly access
through the internet.through the internet.

16. Fully Electronic Transactional SystemFully Electronic Transactional System
 This system allows bi-directionalThis system allows bi-directional
capabilities.capabilities.
 Transactions can be submitted by theTransactions can be submitted by the
customer for online update.customer for online update.
 This system requires high degree of securityThis system requires high degree of security
and control. In this environment, web serverand control. In this environment, web server
and application systems are linked overand application systems are linked over
secure infrastructure.secure infrastructure.
 It comprises technology coveringIt comprises technology covering
computerization, networking and security,computerization, networking and security,
inter-bank payment gateway and legalinter-bank payment gateway and legal
infrastructure .infrastructure .

17. Automated Teller Machine (ATM)Automated Teller Machine (ATM)
• ATM is designed to perform the most important
function of bank.
• It is operated by plastic card with its special
features.
• The plastic card is
replacing cheque,
personal attendance of
the customer, banking
hours restrictions and
paper based verification.

18. Services Provided Under E-Services Provided Under E-
bankingbanking
► Online bill paymentOnline bill payment
► ShoppingShopping
► Ticket bookingTicket booking
► Prepaid mobilePrepaid mobile
rechargerecharge
► Investment servicesInvestment services
► Online applicationsOnline applications
► Debit cardDebit card
► Credit cardCredit card
► Balance enquiryBalance enquiry

19. ADVANTAGESADVANTAGES
 Convenience 24 hours a day, seven days aConvenience 24 hours a day, seven days a
weekweek
 Cost Reducing transfer feesCost Reducing transfer fees
 Speed Faster circulation of assetsSpeed Faster circulation of assets
 Competitiveness - Fostering competition inCompetitiveness - Fostering competition in
financial marketfinancial market
 Communicate easilyCommunicate easily
 Abolishing the uses of paperAbolishing the uses of paper
 User friendlyUser friendly

20. DISADVANTAGESDISADVANTAGES
 A need for customer skill to deal withA need for customer skill to deal with
computers and browsers.computers and browsers.
 Many people who are not comfortable withMany people who are not comfortable with
computers and the Internet, often find itcomputers and the Internet, often find it
difficult to use internet banking.difficult to use internet banking.
 For beginners, internet banking is reallyFor beginners, internet banking is really
time consuming.time consuming.
 In many instances, a simple mistake, likeIn many instances, a simple mistake, like
clicking a wrong button, may create a bigclicking a wrong button, may create a big
problem.problem.

21. CONCLUSIONCONCLUSION
• The strategy of bank is to provide value addedThe strategy of bank is to provide value added
services and products to the consumer, utilizing theservices and products to the consumer, utilizing the
internet extensively.internet extensively.
• The main aim of E-banking is to making transactionsThe main aim of E-banking is to making transactions
through online poses and make customer morethrough online poses and make customer more
beneficial.beneficial.
• The application demonstrate the way to develop anThe application demonstrate the way to develop an
online banking system by using interactive web clientonline banking system by using interactive web client
by using JSP, Servlet with more secure way to access.by using JSP, Servlet with more secure way to access.
• This means the application server easily deployableThis means the application server easily deployable
and accessible.and accessible.