Internet banking, or commonly known as ‘Netbanking’, has been the harbinger of digitalization in the India’s BFSI sector. The moment this concept was introduced by the banks to cater to the audience in the digital economy, it became a widely accepted payment mode for millennials. Digital transactions are performed for online shopping, fund transfer, utility payments (such as payment of bills or payments towards booking of rooms or travel), etc.
Internet banking has also become a way for you to get an online personal loan. At Loan Singh, for example, you can make use of Netbanking for not just submitting your latest 6 months bank statement, but also to make EMI repayments. This is why you need to understand how important netbanking really is. You can make your life much simpler and convenient by utilizing netbanking.
At Loan Singh, we know that netbanking can be used for 2 things – to provide your bank statement at the time of your application, and to make EMI repayments. Let’s dive in further for the former and see why a bank statement is so important for banking activities.
A bank statement is a record of all your financial transactions that you have performed using your bank account. Earlier, the most common way to print a balance statement was by visiting the bank branch and asking the clerk to print the statement of the intended tenure. A bank statement hosts information pertaining to your expenses, income, payments, auto debits, etc.
Spending record – All that you spend, via your bank account, can be viewed on the bank statement. Transactions involving cheques, ATM cards, credit cards, etc. are registered on your bank statement. It also tells you when you made the payments. If you want to maintain a budget, a bank statement is a quintessential requirement.
Proof of reconciliation – The bank statement acts like a proof in case your loan is rejected due to less funds or no credit history. In case, if you feel you have more money in your account than what the bank claims, then you can reconcile using your bank statement. It can also show you any unauthorized charges levied by the bank on your account.
Accounting activity – The bank statement tells you how much funds you had at the start of the accounting year, how much at the end of it, how much you deposited, and how much you withdrew. Any chances of fraud, for e.g. in case of a credit card misuse can be detected via the bank statement. You can then report the misuse to the bank.
Internet banking refers to a set of banking services, provided by banks, to be performed using the internet. Internet banking is performed through your computer system, or smartphone, which connects to your bank’s server for any transaction. Banking is now no more limited to repeated visits to the bank in-person. You can do most of the banking activities via internet banking. You can easily keep track of your account transactions and balance. Some services that you can perform via internet banking are:
- Track your savings account transactions and balance
- Start and manage a Fixed Deposit, a Recurring Deposit or even an FCNR (Foreign Currency Non Repatriable) deposit
- Get an overdraft against a fixed deposit
- Transfer funds within the same bank (between Re.1 to Rs.10 Lakhs per day)
- Instant fund transfer using IMPS
- Transfer funds to any other bank’s account via NEFT
- Perform RTGSbetween amount Rs.2 Lakhs to Rs. 10 Lakhs
- Access to UPI
- Transfer funds to someone outside of the country
- Download a transaction statement
- Track the status of Fixed or Recurring deposits, if any
- Track any cheque transactions
- Enquire about Tax Deducted at Source (TDS)
- Request the bank for a CIBIL report
- Update KYC
- Request for a new Cheque book
- Request the issuing of Demand Draft which is couriered to the applicants updated address
- Update Permanent Account Number (PAN Card Number)
- Submission of Form 15H (No Tax deduction at TDS for Senior Citizens) & 15G (for others)
- File your Income Tax Returns
- E-payments for bills like telephone, gas, etc.
- Send in a request for a new Credit Card, debit card, pin generation, Forex Card or Gift card
- Invest in mutual funds
- Purchase Insurance for protection, savings, health, etc.
- Offers on interest rates by banks
There are many advantages that Internet banking provides compared to traditional ones, making it easier to operate a bank account.
- Easy to understand and operate
- You can perform multiple financial operations at one portal. No need to stand in queues to update your passbook or pay bills or transfer funds
- It is available 24×7 and 365 days a year at your disposal. Now, with telecom companies making 4G Internet available, you can operate your internet banking account on the go
- Fund transfer happens quickly from your account to others, also allowing you to monitor your account against any fraudulent activity or threat
- You can easily update personal information such as PAN, Aadhaar Number, etc.
Your personal and financial information is stored in your bank’s internet banking account; so, it is important to be careful when banking online. Some tips to ensure netbanking benefits are:
When connecting to your netbanking account, make sure you do so from a trusted network. A padlock icon on the left-hand side of the netbanking URL means the connection is encrypted. Make it a habit to include ‘https’ at the beginning of each URL.
A good practice is to logout from an internet banking session, thus preventing session hacks. And clear your cache at the end of a session removing details from your browsing history. You can even use browser’s incognito mode.
Use a combination of upper and lower case letters, numbers and symbols to make it unique. When providing answers to security questions setup by the bank, they don’t have to be genuine. Keep changing the password at least once in 2 months.
Always try and remember to switch-off your Wi-Fi when not in use. Do the same for Bluetooth. Avoid using unknown or public Wi-Fi/hotspots, as information sent over an unsecured wireless network is information sent in plain sight – basically opening your internet banking website to anyone on that wireless network.
Use antivirus software on your system which prevents attacks from Trojans and other malware. Keep your operating system and other security software updated.