Internet Banking – How to Register for Net Banking

Net Banking enables customers to perform a range of banking services, such as opening fixed deposit accounts, recurring deposits, fund transfer, tracking transactions, and many more.

Net banking can be availed by any individual with an active bank account. They need to register for the net banking services offered by the bank, only after which they can perform online banking activities.  

Scope of Online Banking Services:

With the help of online banking, there are several indispensable services which are made available to customers, without them having to personally visit the bank. Customers can perform financial transactions like transferring funds online, pay bills, apply for loans and open a Savings Account among various other debit card transactions. Under non-financial transactions, customers can carry out several activities which may require going to the bank like applying for a new cheque book, getting account statements, update contact information, start/stop payment, etc.

Features of Online Banking:

The following are the features of online banking: 

1. You can check the account statement online 
2. Open a fixed deposit account at your net banking portal. 
3. Pay electricity bill, water bill and other utility bills online. 
4. Transfer money from your account to another bank account. 

1. Do the merchant payments. 
2. Purchase general insurance. 
3. Order a cheque book in a few clicks. 
4. Recharge your mobile or DTH bills. 

What is an e-wallet?

A mobile wallet or an e-wallet is a virtual digital wallet where you can save your funds to be used without the need for swiping any debit or credit card. It is one of the fastest modes of transaction and does not require a minimum deposit amount. E-wallets can be used to purchase anything from groceries to flight tickets. E-wallets can be downloaded on your smartphone through your app store.

How to use an e-wallet?

The most basic requirement for using an e-wallet is a smart phone and an active internet connection. You are required to fill in the basic details such as name and mobile number to sign up for the wallet. Once you are logged in, you can transfer money using net banking or through your debit/credit card into the wallet. According to RBI's latest notification, up to Rs.20,000 can be added into the e-wallet.

E-wallets Vs. Internet banking:

Ever since demonetisation of high currency note struck the country, use of digital payment surged drastically. As a result, more people started availing themselves of digital payment mode and it became a part of the cashless economy. Although both are considered to be digital payment platforms, both differ in some ways. The difference has been explained through the following table:

Advantages of Net Banking:

In an era when all of us are heavily dependent on technology, internet banking is nothing short of a savior. There are several advantages which e-banking has over conventional banking, which requires one to visit the bank and stand in queues. Listed below are just some of the benefits of internet banking which make our life easier each day.

1. Easy To Operate - Online banking is very simple and easy to understand, maybe easier than conventional banking in many cases. The operation of an online account is rather simple and easy to use.
2. Convenience Of Making Payments - Internet banking makes it quite convenient to carry out transactional activities like transfer of funds, payment of bills, etc. this means, no longer having to wait in queues for bill payments or having to safely keep receipts of bill payments, which are also perishable. All records of payments and bills is stored online on your account.

1. Round The Clock Availability - Another indisputable advantage about online banking is that it is available round the clock, throughout the year. You don't have to schedule a time when you can carry out banking activities, regardless of it being a weekend, time of the day or even holidays.
2. Time Saving and Efficient - E-banking is not only fast but also highly efficient in letting you carry out transactions within a few minutes. Transfer of funds, account opening, bill payments take no more than a few minutes to process, which helps save a lot of time.
3. Account Activity Tracking - Another very important benefit provided by net banking is that it allows you to track your account activity at all times. You can keep an eye on your account transactions and balance at all times. Any unauthorized transaction or discrepancy can be immediately tracked and reported to the bank immediately, allowing you to keep your money safe at all times.

Disadvantages of Internet Banking:

Online banking is accompanied by a fair set of advantages, but like everything else, it also comes with certain disadvantages. Some of the things to look out for in case of net banking are as follows:

1. May Be Complicated for Beginners to Understand - For those who are new to the world of banking, online banking may pose as slight challenge in terms of usage. While some banks do provide demos on their websites regarding the use of online banking, there are many banks which don't do that. In the latter case, an inexperienced user may be left to fend for him/herself.
2. No Online Banking Without Internet Access - In order to use online banking, one needs to have a stable internet connectivity or access. Without one, the facility of online banking is of no use. Also, if the bank servers are down, you will be unable to access your account online to carry out transactions.

1. Transaction Security - One of the main reasons which still keeps a lot of customers from using internet banking is the safety of transactions. While all major and recognized banks will have a powerful security encryption in place for ensuring the safety of customer's transactions, there have been instances where transaction details have been compromised. Though it is uncommon, but still can pose as a major threat.
2. Securing Your Password - When it comes to internet banking, account passwords are of crucial importance. For that reason, it is absolutely necessary that a user must never reveal their account password to anyone. The ideal thing to do would be to memorize the password and also keep changing the same frequently, to eliminate any chance of password theft.

How does Net Banking Work? 

To explore the benefits of net banking, customers should register themselves for internet banking at their respective banks. 

1. Customers who have a savings account or current account at any bank can register for net banking. 

1. You should have a strong internet connection, mobile, laptop, or personal computer for internet banking. 
2. Once you have registered for net banking, the bank will issue you a unique customer ID and password through which you can login to the internet banking portal. 

How to Register for Net Banking? 

The following are the steps on how to register for net banking: 

1. You have to submit the duly filled internet banking application form at your home branch along with the relevant documents such as scanned copies of your Aadhar card, bank passbook, etc. 

1. The branch officials will verify all your documents and then they will issue you a customer ID and password to access internet banking portal. 
2. You can download the internet banking application form from the official website of the bank. 
3. Once you have received the login credentials, you will be able to login to the net banking portal. 

How to Register for Net Banking Online? 

Apart from registering for internet banking offline, you can also opt for online net banking registration from your bank’s official website. Almost all banks offer online registration for net banking services. Now let us have a look at the step-by-step procedure: 

1. Visit the official internet banking website of your bank. 
2. Next, go to the personal/ retail banking section and click on the ‘Login’ button. 
3. You will be redirected to a new screen where you have to click on the ‘New User? Register Here’ link. 
4. If you already have customer ID and password, you can enter the same and click on ‘Login’. If not, click on ‘Next’. 
5. You will be redirected to an online ‘Sef Registration Form’ where you need to enter your details like your account number, registered mobile number, email address, CIF number, branch code, debit card details, etc. 

1. Next, click on ‘Submit’.  Verify your registration procedure by entering the One Time Password (OTP).  You will receive a temporary customer ID and password on the screen, use it to login to create a new login id and password. 

Steps for Net Banking Login:

Once you have registered for net banking, you need to follow the given steps to login to the net banking portal: 

1. Visit the internet banking portal of your bank. 
2. If you are using personal banking, select ‘Personal Login’. If you are using corporate banking, select ‘Corporate Login’. 
3. Next, enter your login credentials. 
4. Enter the captcha code and click on ‘Login’ button. 
5. You will be able to view your net banking dashboard. 

Types of Fund Transfers available on Net Banking:

Net banking allows the users to transfer money from one account to another in three different methods such as National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), and Real Time Gross Settlement (RTGS). Now let us have look at all the methods one by one: 

NEFT 

Here are some details about NEFT (National Electronic Fund Transfer) transactions: 

NEFT enables people and businesses to transfer money from one bank account to another, irrespective of the bank with which they are associated. Making interbank transactions in this manner is safe and practical. NEFT transactions can be performed any time your bank is open for business. The processing time can vary, because NEFT runs in hourly batches. The transfer often takes a few hours, although it occasionally takes longer, depending on the bank's procedures and the precise moment the transaction takes place. 

IMPS 

Here are some details about IMPS (Immediate Payment Services) transactions: 

1. IMPS enables people to conduct interbank transactions in real-time through a variety of channels, such as internet banking, ATMs, and bank branches 
2. IMPS enables instant fund transfer between bank accounts 
3. Payment is received immediately as IMPS is processed in real-time 
4. IMPS is accessible 24/7, including on weekends and holidays 
5. Encryption and authentication techniques in IMPS transactions ensures safetu of your financial transactions 

RTGS 

Here are some details about RTGS (Real-time Gross Settlement) transactions: 

1. RTGS system is utilised for large-value transactions in the country 
2. Useful for processing financial transactions between banks that needs to be settled instantly and on an individual basis 

1. RTGS is used in high-value interbank transactions, such as sizable business payments, investments, and other sizable financial transfers 
2. RTGS transactions are settled in real-time and hence are processed instantly and securely to the recipient's bank account 
3. authentication and encryption techniques are utilised to safeguard the authenticity and confidentiality of financial information 
4. Some banks levies charges based on transfer amount for initiating RTGS transactions 

What is e-Banking? 

E-banking, commonly referred to as electronic banking, is the practise of doing various banking and financial transactions online or through other electronic channels using digital and electronic technologies. With its convenience, accessibility, and wide choice of services, e-banking has completely transformed how people and businesses manage their funds. 

Popular Types of e-Banking in India:

The following are the popular types of e-banking in India: 

1. Internet Banking: Customers who use internet banking can access their bank accounts, check balances, look into transaction history, transfer funds, pay bills and carry out other financial tasks over a secure internet connection. Large internet banking platforms are provided by the majority of Indian banks. 
2. Mobile Banking: In India, banks now provide dedicated mobile apps for smartphones and tablets due to the rising popularity of mobile banking. Similar to online banking, mobile banking apps offer similar functions and frequently come with features like mobile alerts and payments. 
3. Unified Payment Interface (UPI): With the help of a mobile app, people may transfer money between bank accounts using the real-time payment system known as UPI. In India, it has been widely adopted, allowing for immediate (peer-to-peer) transactions and payments to merchants. 

1. Mobile Wallets: A digital platform for holding money and processing payments is offered by mobile wallets like Paytm, PhonePe, Google Pay, and others. Users can add money to their wallets and utilise it for a number of different transactions, such as bill payments, online shopping, and mobile recharge. 
2. Automated Teller Machine (ATM) Banking: Although not entirely electronic, ATMs play a significant role in Indian e-banking. At ATMs, users can carry out a variety of operations, such as cash withdrawals, balance queries, and fund transfers. 
3. Debit Cards: Although not entirely electronic, ATMs play a significant role in Indian e-banking. At ATMs, users can carry out a variety of operations, such as cash withdrawals, balance queries, and fund transfers. 
4. Pay by Phone Systems: This system enables the customers to contact their bank to request funds transfer or any bill payment to another account. 
5. Deposit and Withdraws: This facility allows customers to approve paychecks regularly to the account. The customer should provide right to the bank to deduct funds from their account to pay bills, insurance payments, etc. 

Services Provided Through e-Banking in India:

The following are the services provided by the banks through e-Banking in India: 

1. Telephone Banking 
2. ATMs 
3. Mobile Banking 

1. Electronic Clearing Cards 
2. Bill Payment 
3. Doorstep Banking 
4. Smart Cards 
5. Shopping 

1. Internet Banking 
2. Funds Transfer 
3. Electronic Clearing Service 
4. Electronic Funds Transfer System 
5. Investing 

1. Fixed Deposits 
2. Telebanking 
3. Insurance 

How to Transfer Funds Through Net Banking? 

Following are the steps to transfer funds through net banking: 

1. Login to the net banking portal using your customer ID and password. 
2. Go to the ‘Transfer Funds’ section and choose the mode of funds transfer – RTGS, NEFT, or IMPS. If you have chosen NEFT, you have to ensure that the recipient's bank account is enabled. 
3. Enter the amount that you want to transfer. 
4. Next, verify the process by entering the OTP. 
5. Click on the ‘Confirm and Send’. The funds will be transferred to the beneficiary’s bank account. 

Comparison Between Net Banking and E-Banking:

Here are some of the key differences between Net banking and E-banking: 

How to Make Credit Card Bill Payments Through Net Banking? 

Here’s how to pay credit card bills through net banking: 

1. Login to the website of your credit card provider. 
2. Click on the ‘Pay Your Credit Card Bill’ option. 
3. Next, enter your credit card details like credit card number, email address, and amount. 

1. You will be redirected to the payment gateway. Choose the ‘Net Banking’ option and select the bank account from which you are going to initiate transaction. 
2. You will be redirected to your bank’s payment interface. 
3. Next, enter your customer ID and password. 
4. Authenticate the transaction by entering the OTP. 
5. Click on the ‘Confirm’ button.