Bank Cards and E–Banking Services

Sakshi Education

Automated teller machine
ATM is designed to perform the most important function of bank. It is operated plastic card with its special features. The plastic card has replaced cheque Personal attendance of the customer banking hour’s restrictions and paper based verification. These are debit cards. An ATM is an electronic funds Transfer terminal capable of handling cash deposits Transfer between accounts balance enquires, cash withdrawals and pay bills. It may be online or Offline. Any customer processing ATM card issued by the shared payment network system can go to any ATM linked to shared payment networks and perform his transactions

Credit card/ Debit card
The Credit card holder is empowered to spend wherever and whenever he wants with his Credit card within the limits fixed by his bank. Credit card is a post paid card. Debit card considered as a prepaid card with usage facility limited to the balance in the linked deposit account of the cardholder. An individual has to open an account with the issuing bank which gives debit card with a Personal identification number. When he makes purchases he enters his pin on shops pin pad. When the card is slurped through the electronic terminal it dials the acquiring bank system either master card or VISA that validates the pin and finds out can never overspend because the system rejects any transactions which exceed the balance in his account. The bank never faces a default because the amount spent is debited immediately from the customer’s account.

Smart card
A smart card, chip card, or integrated circuit card (ICC), is in any pocket-sized card with embedded integrated circuits which can process data. This implies that it can receive input which is processed by way of the ICC applications and delivered as an output. There are two broad categories of ICCs. Memory cards contain only non-volatile memory storage components, and perhaps some specific security logic. Microprocessor cards contain volatile memory and microprocessor components. The card is made of plastic, generally PVC. The card may embed a hologram to avoid counterfeiting. Using smartcards also is a form of strong security authentication for single sign-on within large companies and organizations.

The Society for Worldwide Interbank Financial Telecommunication
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment through SWIFT codes.

Services of E-banking
E-banking provides a multitude of services that are as follows

Bill Payment Service
E-banking facilitates the payment of electricity bills, telephone bills, Credit card, and insurance premium bills. And the bank does not charge customers for online payments
Fund Transfer
You can Transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India.
Credit Card Customers
With internet banking customers cannot only pay their credit card bills online but also get a loan on their cards. In case of loss of the credit card an online reporting can be done.
Investing through Internet banking
Now, FD can be opened on line through funds Transfer and investors with interlinked demit account and bank account can easily trade in the stock market.
Recharging Prepaid Mobile
By just selecting the operator name entering the mobile number and the amount of Recharge the mobile phones can be back in action within few minutes.
RTGS fund Transfer
RTGS is an inter Bank funds Transfer system. Where are Transferred as end when the transactions are triggered.
Shopping
Online Shopping can also be done with a range of all kind of products. Railway and air tickets can be bought through the internet banking.
Online payment of taxes.
A customer can pay various taxes on line including excise and service tax direct tax etc.

Electronic funds Transfer
Electronic funds Transfer provides for electronic payments and collections. EFT is safe secure, efficient and less expensive than paper check payments and collections. RBI EFT is a scheme introduced by RBI to help banks offering their customers money Transfer service from account to account to any branch to any other bank branch in places where services are offered.

Internet banking
Through internet banking you can check your transactions at any time of the day and as many times as you want to; where as in a traditional method you get quarterly statements from the bank. If the fund Transfer has to be demand outstation where the bank does not have a branch the bank would demand outstation charges; whereas with the help of online banking.

Mobile Banking Transactions
Now banks have started offering mobile banking and telemarketing to their customers. The expansion in the use and geographical reach of mobile phones has created new opportunities for banks to use this mode for banking transactions and also provide an opportunity to expand banking facilities to the excluded sections of the society.

Fund Transfer Systems
There are two ways for transferring funds
RTGS (Real Time Gross Settlement)
NEFT (National Electronic Fund Transfer)

Real Time Gross Settlement (RTGS):
RTGS is nothing but transferring of money in real time on gross basis from one bank to other without netting. This RTGS is mainly used for large transactions, Minimum amount to be remitted through this RTGS is 2 Lakhs and there is no any upper limit.

Through RTGS system, money will be remitted for beneficiary account within 2 hours of receiving the fund transfer message.

Main advantage of fund transferring through RTGS is remitting bank will receive the conformation message from RBI that money have been transferred to beneficiary’s account.

Timings for Transferring Funds through RTGS:
Normal Days: 09:00 hours to 16:30 hours
Week Days: 09:00 hours to 14:00 hours
Processing/Service Charges for RTGS Fund Transfer
Inward Transactions: No Charge
Outward Transactions: Rs.2lakhs to Rs.5lakhs: Rs.30/-
Above Rs.5 lakhs: Rs.55/-

National Electronic Fund Transfer (NEFT)
NEFT is an electronic fund transfer system on DNS (Deferred Net Settlement) basis through netting. This NEFT will be done in 12 settlements.
Timings for Transferring Funds through NEFT:
Normal Days: 08:00 am to 07:00 pm
Week Days: 08:00 am to 01:00 pm

Indian Financial System Code (IFSC)
IFSC (Indian Financial System Code) is an alpha-numeric code that uniquely identifies bank branch participating in the NEFT system.

IFSC is an 11-digit code with the first four Alpha characters representing the bank, and the last 6characters representing the branch. The 5th character is 0 (Zero).

In this IFSC code SBHY0021221, SBHY represents bank name “State Bank of Hyderabad”, Last 6 digits 021221 is the branch code. Main aim of using this IFSC code is to identify the originating/destination banks and branches and also to route the messages to the concerned banks/branches appropriately.

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