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Role of Internet Banking in Financial inclusion

Discuss the Role of Internet Banking in Financial inclusion in India

Internet Banking

Internet banking is a service by banks for transferring the money from one bank account to the other using the internet. It is a way of transacting money without going to the branch.
The amount is transferred either on a real-time basis or by batch method.

The IMPS (Immediate payment service), RTGS (Real Time Gross Settlement) transfer the money on a real-time basis while NEFT (National Electronic Fund Transfer) works on the batch method.The batch is of 30 minutes and then settlement is done. 

Internet banking has various advantages. First, it is 24*7 available. Unlike branches, it doesn't close. One can do it at any time providing service and internet is working. One need not wait for the opening of the branches for the payments.

Second, transactions are faster, if one goes to the branch it depends on the officer to complete the transaction. It may get late but internet banking is a customer-initiated transaction, he can transact any time with no constraint and delay.

Internet Banking

Third, transactions are greener, when it is online, you don't need to fill a transaction slip giving the mandate to the bank to do the transaction.

 Fourth, visits and banking, you save the time as you need not visit the bank vacating your time, it in results give you time to perform other daily routine work and save time.

 Fifth, secure, it is secure as compared to the offline method. It doesn't involve another person in the transaction and is a customer-initiated transaction.

Sixth, Signature, if and if there is an abbreviation in the signature, officials wouldn't perform the transaction as it might be fraudulent if it is online, it saves you from this as well.

Conclusion


The improvements are yet needed in internet banking. Faster redressal of public grievances about the failure of transactions, tightened IT security, literate the customers about the service and not to share OTP (One Time password) and adaptability of the service. Although it is a revolution in banking as it makes the basic principle of banking easy and acceptable, that is transactions.

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