Reasons For the Growth of Net Banking in India

Reasons For the Growth of Net Banking in India

Intense competitive surroundings, globalization, changing business environments and advancement in technology are crucial parameters that have propelled the financial and banking sectors to change.

Also, customers are even demanding higher accessibility and convenience as reflected in the longer bank branch opening hours. Besides this, they are even demanding enhancement in the choice of the delivery mechanism. 

Thus, with the reduction in traditional banking to electronic banking becoming adverse, several strategies have become crucial to attracting new as well as retaining the prevailing customers.

Financial institutions are the major stimulus of economic progress to play a crucial role in spearheading the economic development of the nation. The financial services demand is transmuting steadily and deportment of the customers regarding such services with time will transmute considerably.

Consequently, it is important for the banking field additionally those in lieu of conventional banking is adopting electronic banking with certain incipient strategies to magnetise as well as retain subsisting and incipient banking customers. 

Net banking service even called e-banking is one of the most pioneering trends among customers in the current era of the thrust for more expeditious as well as secured financial and banking services. The transfer of traditional banking services to e-banking has become an elevating amendment.

Enlarged competition, advancement of info and communication technology, transmuting business environment and others are consequential and important concerns that coerced banking services to change. 

Has been over a decade now that financial institutions have been using telecommunication and electronic modes for distributing value i.e., integrated services or products. For instance, IOB net banking allows you to conduct balance enquiry, account statements, last few transactions, cheque paid status, deposit renewal or closure, and transfer funds from your other bank account to your IOB account. Same as this, there are other banks too with unique banking services and offerings. 

Instead of digital luxury, it must be viewed as a financial requirement to use e-banking. E-banking can be extremely useful to effectively manage your account seamlessly. Here are eight reasons why you must use net banking –

Digital payments

India is rapidly transitioning into a digital economy where the exchange of currency takes place via digital modes. You can make payments to distinct merchants, vendors, businesses, suppliers, etc. through different digital modes like net banking. Not just is this more convenient, but it’s even safer than carrying cash around.

You can make payments directly via your bank accounts through the usage of net banking. As an organization, you may make GST payments through net banking. Usage of UPI is even performed by simply linking your account to such mediums and making payments via them. 

Control over transactions

Internet banking portals facilitate simpler access to bank accounts. Most banks offer the option to view mini statements i.e., your past 10 transactions or last one-month transactions, fixed deposit interest statement, historical statement, TDS deduction details, etc. via their site. 

You can even view distinct transactions being debited from and even credited to your account. Hence, any unauthorized or suspicious activity can be detected instantly. Moreover, you can even request the chequebook or demand draft via net banking. 

Money transfers through the online medium

Money transfers via cheques are reducing steadily as online money transfer takes place efficiently and quickly. You can use the IMPS (immediate payment system) NEFT (national electronic funds transfer) or RTGS (real-time gross settlement) and enjoy all convenience of making transfers online. 

Setting the automatic bill payments

Most financial institutions offer the facility of making bill payments via their net banking portals. Under such a facility, the account holder is required to submit the asked details for registration purposes like relationship number and mobile number, etc. Such bills get raised by the registered billers and may be found in the bill pay category of the banking portal. Also, you can make bill payments directly from this.

Most portals even permit you to simply set up the standing instruction to make such bill payments automatically from your bank account. This process is known as auto debit. 

Including SIP registration

You may open an FD online directly via the net banking route and few banks even permit you to make the premature withdrawal via net banking for the FDs created online.

Moreover, just like net banking allows you to make distinct payments through online mode. This facility can even be used to make investments with just a click.

You can even begin your SIP (systematic investment plan) in mutual funds and add the mutual fund house as a biller to enable the SIP payments. Such payments can even be scheduled for automatic payment and hence you can make consistent and regular savings.

Pay the taxes via the income tax e-filing

The income tax department has joined with several banks to provide access to the taxpayer’s e-filing account from the e-banking portal. This facility particularly comes in handy when you do not remember your e-filing account password and want to regain access.

Moreover, when you log in using your net banking into your e-filing account, you can even verify the ITR online with just a click and there are zero further requirements for physically sending the signed copy of the ITR to the IT department’s central processing centre.

Still not clear? Suppose you have an account with the IndusInd bank, now to file your tax return, you do not require visiting the bank as per the IndusInd bank timings to fetch the required details like account statements, etc.

You can simply do so through your IndusInd net banking account. Not just can you fetch the required bank statements but also pay the taxes through the portal  

Placing applications for the IPOs 

Several financial institutions have enabled the transaction interface in their net banking portals to allow customers to place applications for IPOs online. SEBI even has discontinued the manual application mode for placing the application for IPO.

Getting access to net banking can permit account holders to make the IPO application and even aim to generate the relevant gains from the stock investments over the long-term wealth creation period.

Provision to access the personal loan

Most banks now allow you to avail pre-approved personal loans instantly through the online net banking portal. Not just personal loans, but other credit options too like home loans, loan against property and loan against securities can be applied for through the net banking portal.

Greg Stanley

Me Greg Stanley is the editor of the web tech mantra website. And I have ten-plus years of experience in the content marketing world. I gained the skills to present helpful content to all precious audience of the site. My only moto is to create trust and maintain quality, readability content to the people through the web tech mantra website.