REASONS FOR SELECTION OF THE TOPIC

Internet

banking is becoming more and

more popular among the masses

Highlight

its pros and cons

Make

the concept and procedure more

familiar

CONTENTS

What is internet Banking? History Categories Services Provided Advantages and Disadvantages Internet banking infrastructure How to access internet banking Security risk in Internet Banking Fraudulent bank websites Fake emails Virus and Worms Conclusion Bibliography

WHAT IS INTERNET BANKING

Internet banking means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions:

Balance enquiry Transfer of funds Online payment of bills Accounts, credit card & home loan balances Accrued interest, fees and taxes Transaction details of each account Transfer funds to third party accounts you nominate Open a deposit right from the terminal you are sitting at

May 1995:

Wells Fargo - the first bank in the world to provide

customer access to their accounts over the internet.
ICICI

was the first bank to initiate the Internet Banking Revolution in India as early as 1997 under the brand name Infinity. ICICI kicked off online banking way back in 1996. But even as a whole, 1996 to 1998 marked the adoption phase, while usage increased only in 1999-due to lower ISP online charges, increased PC Penetration and a Tech Friendly atmosphere.

Internet banking can be categorized in following stages :

I.

Information Kiosks: traditional information on banking products and services are available on the website of the bank.

II.

Basic I-Banking : Here, bank sets up infrastructure for internet banking and for accessing basic services like opening an account, paying utility bills and checking the balance.

III.

Virtual medium : Here internet is taken as an official medium for financial transactions. Buying and selling activities can be undertaken through banks payment gateway technology.

SERVICES PROVIDED UNDER INTERNET BANKING

Online Bill Payment Personal Home Page Ticket Booking Prepaid Mobile Recharge Market Watch Investment Services Online Applications Personal updates

ADVANTAGES

DISADVANTAGES

1. Faster and Convenient 2. Unaffected by boundation of operational timings

1.No face to face interaction 2. Security concerns 3. Accessibility

3. No geographical barriers
4. Computer literacy 4. Services can be offered at very low cost 5.Mindsets of people

Software Hardware
Web servers Application servers Database servers Networking equipment Systems software Application software

Services
Application integration with core banking Scalability tests (desirable but optional) Web designing Server sizing

Internet Banking Infrastructure

Security
Firewalls Certification Server level (mandatory) Client level (optional) Intrusion detection system Subscribing to advisories

Networking
Isolation from the main network

Hosting decision
In-house vs IDC

Before you can access your account online, youll need to register with your bank for Internet banking.

Your bank will give you a registration number or login

ID. Youll also need to select a password. Your Internet password is different from the PIN you use with your debit card. Once your bank has approved your registration, youre

able to access your accounts online.

STEP 1:

Go to your banks website. Once youre on your banks website youll see a button or other icon labelled Log on to Internet banking or something similar (the terminology varies from bank to bank)

Click on this icon

It will take you to a login page

STEP 2:

Login to your Internet account . It generally requires you to enter your registration number or login ID

You will also have to enter your

password either by typing it in, or

by clicking on letters and numbers onscreen.

Click on the login button.

STEP 3:

Once youve got online access to your accounts youll see the different types of transactions that you can perform. Usually on the left side of the screen there

will be a list of functions. Click on a function to open it.

For example, if you want to transfer funds, click on the button or icon labelled Transfers or something similar. Youll need to complete the required data.

Remember make sure that you have the right

BSB code and account number for the beneficiary of the transfer, as this is the information that the bank will use to process the transfer.

Step 4:Check the Statement Summary

STEP 5:

Once youve finished your Internet banking, be sure

to log out from your account.

Most banks also have in place a time-out feature, which means that if youre inactive for

a certain period in your Internet

banking session, youll automatically be logged out.

Increasing number of fraudulent bank websites

Fake emails purporting to be sent from banks

Use of Trojan Horse programs to capture user IDs and passwords

 Nowadays a large number of fraudulent websites are coming up which aim to trick

persons into disclosing their sensitive personal

information.

Fake Emails
Emails are send by Fraudulent bank. Customers verify the personal information. These Emails Guide customers and make them enter the fraud links. Thereby Disclosing the customers ATM

card numbers and their passwords

Viruses and Worms Trojan HorseProgram

When you open some suspicious websites your email, Trojan Horse Program gets installed, secretly hiding in the computer. When you access bank websites they capture your account and the password

CONCLUSION

Internet banking is changing the banking industry and is having the major effects on banking relationships.

The net banking, thus, "now is more of a norm rather than an exception in many developed countries" due to the fact that it is the

economical way of providing banking services.

Banking is now no longer confined to the traditional brick and mortar branches, where one has to be at the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts.

Providing internet banking is increasingly becoming a 'need to have' than a 'nice to have' services.

BIBLIOGRAPHY & SOURCES OF INFORMATION

Websites

www.wikipedia.com www.banknetindia.com www.networkmagazineindia.com/200302/featu re.shtml http://www.bankers.asn.au/smarterbanking/most-account.html

Search

Engine

Google